Unnamed: 0
stringlengths 0
9
| Date
stringlengths 23
23
| Article_title
stringlengths 2
396
| Stock_symbol
stringclasses 89
values | Url
stringlengths 36
255
| Publisher
stringclasses 518
values | Author
stringclasses 1
value | Article
stringlengths 0
273k
| Lsa_summary
stringlengths 0
40k
| Luhn_summary
stringlengths 0
40k
| Textrank_summary
stringlengths 0
40k
| Lexrank_summary
stringlengths 0
40k
|
|---|---|---|---|---|---|---|---|---|---|---|---|
12025.0 | 2023-12-16 22:00:00 UTC | My 6 Largest Portfolio Holdings Heading Into 2024 -- and the Important Investing Lesson I Learned From Each One | AAPL | https://www.nasdaq.com/articles/my-6-largest-portfolio-holdings-heading-into-2024-and-the-important-investing-lesson-i | After an absolute disaster of a year in 2022, the stock market appears to have turned the corner. Each of the major market indexes has gained more than 20% from their respective trough. Perhaps more importantly, the S&P 500 and the Nasdaq Composite are within striking distance of new highs, which will check the final box marking the start of a new bull market.
Closing out the old and ringing in the new is a great time for examination, and one of the places I start is with my portfolio. A review of my top investments and how they came to be that way can offer valuable insight for the future.
Here's a look at my six largest holdings heading into 2024 (as of the market close on Dec. 15) and the incredibly valuable lesson I learned from each one.
Image source: Getty Images.
No. 6: Nvidia
Every investor has one -- the "stock that got away." The one you meant to buy, only to find that it got away from you and has risen 100%, 500%, or even 1,000%. In my case, that stock was Nvidia (NASDAQ: NVDA). I had owned a few shares of the graphics processing units (GPU) pioneer in the early days of my investing journey but ultimately sold them in an unprovoked bid of tax-loss harvesting in early 2010.
I always meant to buy it back, but the stock price meandered for much of the next five years, and I ultimately lost confidence. Things changed quickly in 2016 when the stock tripled. After that, it just kept getting away from me.
Fast forward to early 2018. Nvidia still dominated the discrete desktop GPU space, controlling roughly 70% of the market. The company's graphics cards were the processor of choice for cryptocurrency mining, which was booming. Furthermore, there was an ongoing push toward autonomous driving. It was clear that CEO Jensen Huang had a knack for skating to where the puck was going -- recognizing technology trends on the fly and adapting Nvidia's processors and the accompanying software to meet that need.
After much deliberation, I held my nose and bought Nvidia anyway -- even though the stock had risen 600% over the preceding two years. I have added to my stake several times since. Over the past few years, Nvidia has once again adapted to meet a compelling technology need, becoming the gold standard for generative AI applications.
Since that initial purchase, Nvidia has soared 768%, and the stock has become my sixth-largest holding, amounting to nearly 6% of my portfolio. The lesson here? It's never too late to buy a quality company, even if the stock has already risen many times over.
No. 5 and 4: Shopify and Amazon
Long after Amazon had established itself as the world's largest digital retailer, Shopify (NYSE: SHOP) came on the scene with a different approach to e-commerce. Shopify's founders, having discovered firsthand the difficulties inherent in starting an online sales platform, pivoted the business from selling snowboards to providing customizable templates and other tools that made setting up and running an e-commerce business a snap.
By solving a common problem among digital retailers, Shopify carved out a profitable niche for itself in a market that was already (and still is) dominated by Amazon. While it isn't an exact apples-to-apples comparison, it helps illustrate an age-old truth in investing that I learned from owning this stock -- there's a Pepsi for every Coke.
There's another lesson here. I had long been a shareholder of Amazon, but I recognized the value Shopify could bring to the online sales space. Despite the fact that e-commerce was already well represented in my portfolio, I made a sizable investment in Shopify.
That decision turned out well, as both companies have continued to prosper in the age of digital retail. It also turned out well for me as an investor. Since my first purchase of Shopify shares, the stock is up more than 1,446%, while Amazon has gained 844%. Shopify and Amazon are my fourth and fifth largest holdings heading into 2024, each representing roughly 6% of my portfolio.
No. 3: Apple
There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Yet, at times over the past few years, some investors concluded the company had reached its zenith. Apple reached a market cap of $1 trillion in 2018, so how much higher could it go?
There were other worries. As penetration has risen, global smartphone sales have slowed. Since Apple's flagship product -- the iPhone -- historically generates more than half the company's revenue, investor reservations are understandable.
Despite these challenges, Apple has continued to grow. CEO Tim Cook has succeeded in expanding Apple's services business to become the company's second-biggest breadwinner, behind just the iPhone. The segment brought in $85 billion in fiscal 2023 (ended Sept. 30), making it comparable to a top 50 company in the Fortune 500. Furthermore, the iPhone continues to dominate where it matters, capturing a record 45% of worldwide smartphone revenue and 85% of profits in the second quarter, according to Counterpoint Research.
Fears that Apple simply couldn't go any higher turned out to be unfounded, an important lesson for investors as its market cap has tripled since 2018. Since my first purchase in 2008, Apple's stock price has surged more than 3,400% to become my third-largest position at 8% of my portfolio. I'm confident there's more to come.
No. 2: Mercadolibre
It's likely that many investors have never heard of MercadoLibre (NASDAQ: MELI). The company, which began as a local online auction site, has evolved into the largest e-commerce and payments ecosystem in Latin America, serving 18 countries in the region.
MercadoLibre not only provides a marketplace for buyers and sellers but also handles shipping and logistics, warehouse and cross-docking, digital payments, consumer and merchant financing, digital wallets, and more. Think of it as the Amazon, Shopify, and PayPal of Latin America all rolled into one.
Many investors have avoided the stock because of the risks inherent in the region, which is understandable. For example, Argentina -- MercadoLibre's birthplace and one of its biggest markets -- has an inflation rate that clocks in at 143%, and the country just devalued its currency by 50%. Other countries in the region grapple with hyperinflation, economic turmoil, charges of political corruption, poor infrastructure, and more.
Yet those risks pale in the context of the opportunity. Latin America is years behind the U.S. in terms of e-commerce and digital payment penetration, yet adoption continues to grow. Furthermore, Latin America has twice the population of the U.S. and is the fastest-growing e-commerce market in the world, according to Americas Market Intelligence. Finally, because MercadoLibre takes a cut of each transaction, it has sidestepped many of those risks. As a result, its revenue grew 50% in 2022 while net income soared 480%, a trend that has been ongoing for more than a decade.
Understanding the risk, viewed through the lens of the significant long-term opportunity, can provide important insight, which gave me the confidence to buy the stock. My rather modest initial investment in MercadoLibre in 2009 has grown by more than 7,300%, and the company now represents 10% of my portfolio. Not bad for a "risky" stock.
No. 1: Netflix
Netflix (NASDAQ: NFLX) was the very first stock I bought when I started investing in late 2007. After incurring a late fee at Blockbuster (remember them?) that was more than the cost of buying the movie new, I cut up my membership card and subscribed to Netflix. As an extremely satisfied customer, it made perfect sense to buy the stock once I started investing.
Back then, the company was a DVD-by-mail service that had recently begun experimenting with streaming video. Netflix had achieved remarkable penetration in its earliest markets, and I surmised the company could expand its success across the country, which was the basis of my investing thesis.
The company has achieved all that and more, becoming the world's largest subscription streaming video service. The value of the initial shares I bought in 2007 has surged more than 19,000%, making Netflix my largest holding at nearly 11% of my portfolio.
However, those life-changing gains were only possible because I held the stock for the duration, which is easier said than done. Remember the "Qwikster" fiasco of 2011? All the "Netflix killers" over the years? How about the loss of 1.2 million subscribers early last year?
There were plenty of excuses to sell Netflix over the years, but for me, the investing thesis never changed, so I held on. And this long-term buy-and-hold strategy continues to win out.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola and short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. It was clear that CEO Jensen Huang had a knack for skating to where the puck was going -- recognizing technology trends on the fly and adapting Nvidia's processors and the accompanying software to meet that need. The company, which began as a local online auction site, has evolved into the largest e-commerce and payments ecosystem in Latin America, serving 18 countries in the region. | 3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Danny Vena has positions in Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify and has the following options: long January 2024 $95 calls on PayPal. The Motley Fool has positions in and recommends Amazon, Apple, MercadoLibre, Netflix, Nvidia, PayPal, and Shopify. | 3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | 3: Apple There's little question that Apple (NASDAQ: AAPL) has become one of the most successful companies in history. 6: Nvidia Every investor has one -- the "stock that got away." Should you invest $1,000 in Nvidia right now? |
||
12026.0 | 2023-12-16 22:00:00 UTC | Brokers Suggest Investing in Apple (AAPL): Read This Before Placing a Bet | AAPL | https://www.nasdaq.com/articles/brokers-suggest-investing-in-apple-aapl%3A-read-this-before-placing-a-bet | When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Apple currently has an average brokerage recommendation (ABR) of 1.71, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.71 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 58.6% and 10.3% of all recommendations.
Brokerage Recommendation Trends for AAPL
Check price target & stock forecast for Apple here>>>
The ABR suggests buying Apple, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is AAPL a Good Investment?
In terms of earnings estimate revisions for Apple, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.56.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Apple.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment? | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL | Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Brokerage Recommendation Trends for AAPL Is AAPL a Good Investment? | Brokerage Recommendation Trends for AAPL Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Is AAPL a Good Investment? |
||
12027.0 | 2023-12-16 21:00:00 UTC | Company News for Dec 19, 2023 | AAPL | https://www.nasdaq.com/articles/company-news-for-dec-19-2023 | Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace.
Prologis, Inc.’s PLD shares fell 1.2% on the real estate sector continuing to make losses.
Shares of United States Steel Corporation X soared 26.1% after Japan-based Nippon Steel announced that it would buy the company in a $14.9 billion deal that includes debt.
Shares of The AES Corporation AES fell 1.7% on utilities becoming one of the biggest losing sectors of the day.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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
Prologis, Inc. (PLD) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
The AES Corporation (AES) : 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. | Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Prologis, Inc.’s PLD shares fell 1.2% on the real estate sector continuing to make losses. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Shares of United States Steel Corporation X soared 26.1% after Japan-based Nippon Steel announced that it would buy the company in a $14.9 billion deal that includes debt. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report United States Steel Corporation (X) : Free Stock Analysis Report The AES Corporation (AES) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. AAPL lost 0.9% on China’s ban on the company’s iPhones gathering pace. Shares of The AES Corporation AES fell 1.7% on utilities becoming one of the biggest losing sectors of the day. |
||
12028.0 | 2023-12-16 21:00:00 UTC | NVIDIA (NVDA) Up 243% YTD: Will It Carry Momentum in 2024? | AAPL | https://www.nasdaq.com/articles/nvidia-nvda-up-243-ytd%3A-will-it-carry-momentum-in-2024 | NVIDIA Corporation NVDA has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. NVIDIA also achieved a massive milestone in May 2023 by joining the exclusive club of companies with a $1 trillion market capitalization.
The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions.
However, the looming question remains — Can NVIDIA sustain this momentum through 2024?
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Will GenAI Investments Aid NVDA’s Surge?
NVIDIA’s robust stock price performance has been primarily driven by hopes that the company will be a prime beneficiary of growing investments in generative AI. Given generative AI’s inherited opportunities and the company’s leadership in the space, we believe the NVDA stock is poised to carry the momentum in 2024.
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end market, NVDA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Additionally, NVIDIA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks in the $1T Club
Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. At yesterday’s closing price of $500.77, NVDA has a market capitalization of $1.23 trillion, positioning it in the fifth spot.
Shares of Apple, Microsoft, Alphabet and Amazon have rallied 50.7%, 55.4%, 53.9% and 83.2%, respectively, year to date. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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. | Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). | Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. | Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. | Other Stocks in the $1T Club Apart from NVIDIA, only four companies — Apple Inc. AAPL, Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Amazon.com, Inc. AMZN — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). |
||
12029.0 | 2023-12-16 21:00:00 UTC | Pre-Market Most Active for Dec 19, 2023 : BMY, SQQQ, NIO, UBS, TQQQ, UBER, NVDA, AAPL, GOTU, CAN, TSLA, PLTR | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-dec-19-2023-%3A-bmy-sqqq-nio-ubs-tqqq-uber-nvda-aapl-gotu-can | The NASDAQ 100 Pre-Market Indicator is up 10.13 to 16,739.93. The total Pre-Market volume is currently 34,708,820 shares traded.
The following are the most active stocks for the pre-market session:
Bristol-Myers Squibb Company (BMY) is +0.13 at $51.47, with 2,493,019 shares traded. BMY's current last sale is 85.78% of the target price of $60.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is +0.16 at $8.51, with 2,030,567 shares traded. NIO's current last sale is 81.83% of the target price of $10.4.
UBS AG (UBS) is +0.9 at $30.10, with 1,688,120 shares traded. UBS's current last sale is 118.13% of the target price of $25.48.
ProShares UltraPro QQQ (TQQQ) is +0.29 at $50.56, with 1,511,601 shares traded., following a 52-week high recorded in prior regular session.
Uber Technologies, Inc. (UBER) is +0.0505 at $61.78, with 1,237,148 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
NVIDIA Corporation (NVDA) is -6.67 at $494.10, with 1,110,574 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024. The consensus EPS forecast is $4.13. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Gaotu Techedu Inc. (GOTU) is -0.23 at $3.50, with 827,804 shares traded. GOTU's current last sale is 152.17% of the target price of $2.3.
Canaan Inc. (CAN) is +0.19 at $2.39, with 816,633 shares traded. As reported by Zacks, the current mean recommendation for CAN is in the "strong buy range".
Tesla, Inc. (TSLA) is +0.82 at $252.90, with 758,351 shares traded. TSLA's current last sale is 101.16% of the target price of $250.
Palantir Technologies Inc. (PLTR) is +0.14 at $17.98, with 635,719 shares traded. PLTR's current last sale is 112.38% of the target price of $16.
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 +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session. | Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.86, with 2,371,263 shares traded., following a 52-week high recorded in prior regular session. | Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 34,708,820 shares traded. | Apple Inc. (AAPL) is +0.86 at $196.75, with 1,018,616 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: |
||
12030.0 | 2023-12-16 20:00:00 UTC | 3 Artificial Intelligence (AI) Stocks for 2024 (and Beyond) | AAPL | https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-for-2024-and-beyond | What was the top financial story of 2023? It has to be Artificial Intelligence (AI), right?
No other subject dominated the headlines quite like AI. Whether it was ChatGPT, viral AI-generated images, or the failed ouster of Sam Altman at OpenAI, it seems AI keeps pumping out big stories, one after the other.
So, with 2024 right around the corner, here are three AI stocks worth owning in 2024 -- and beyond.
Image source: Getty Images.
AI analysis can help companies optimize their operations
Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. There are, however, signs that 2024 (and beyond) could be even better.
Palantir operates AI-based analytics systems for governmental and commercial uses and is on the leading edge of translating AI innovation into shareholder returns. Consider Palantir's recent announcement that it is extending its long-standing partnership with UniCredit S.p.A., a major European bank.
In its press release , Palantir noted that its signature Foundry operating system delivered material results for UniCredit. For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting."
Indeed, UniCredit is just one of many customers that is desperate to ramp up its use of AI to streamline its operations. In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S."
The numbers certainly back that statement up. In its most recent quarter (the three months ending on Sept. 30, 2023), Palantir grew revenue by 17% year over year. Trailing-12-month revenue hit $2.1 billion, gross profit swelled to $1.7 billion, and free cash flow increased to $474 million.
PLTR Revenue (TTM) data by YCharts
Nevertheless, Palantir stock isn't for everyone. Since the company is still early in its lifecycle, its stock will be volatile. Indeed, shares plummeted more than 84% from their all-time high between January 2021 and January 2023.
Still, for long-term, growth-oriented investors, Palantir is a name worth considering, given the soaring demand for its products and its improving fundamentals.
AI isn't just about what you see; it's about what you say and hear
Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of. SoundHound AI (NASDAQ: SOUN) develops conversational AI, taking an audio input, such as someone voicing a question and responding with dialogue or action.
Conversational AI has a lot of existing and potential use cases. SoundHound AI is used in restaurant and hospitality industries to take orders or make reservations. It's in vehicles, smart devices, and appliances for voice assistance. In the future, the technology could find its way into healthcare, customer service, and more. SoundHound AI estimates a long-term potential addressable market of $160 billion.
As a company, SoundHound AI is just getting started. It's only done $38 million in revenue over the past 12 months, but analysts believe it will grow significantly. Estimates call for 50% revenue growth over the next two years. The company also recently announced an acquisition of SYNQ3 Restaurant Solutions, giving SoundHound access to a potential restaurant pipeline of 100,000 locations.
SoundHound AI is a risky stock because the business is so nascent. It's burning cash every quarter, and there is only a year or so of cash on the balance sheet at this rate. Investors shouldn't be shocked if the company issues new stock to raise funds. Conversely, the stock's market cap is just $480 million. Investors could eventually be handsomely rewarded if SoundHound AI can become a leader in this massive (but underrated) niche within AI.
It's way too early to count out this "AI-first" company
Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).
Indeed, the rise of OpenAI's ChatGPT seemed to catch Alphabet off guard, particularly as rival Microsoft (NASDAQ: MSFT) forged an alliance with the research and development company. This gave users a reason to start using Microsoft's search engine, Bing, and some began questioning the dominance of the Google search engine for the first time in several years.
However, Alphabet has responded with its own generative AI tool called Bard. While the tools offer similar results, Bard was first in producing more up-to-date results as it leverages Google's search engine.
Moreover, the company has a long history with AI. Alphabet first used AI to correct spelling as early as 2001. The tools advanced from that point, so much so that Alphabet declared itself an "AI first" company in 2016.
Furthermore, investors should remember that Alphabet owns numerous companies, some of which could drive AI innovation. Earlier this year, it combined two of its AI companies into Google DeepMind. This subsidiary is a group of scientists, engineers, and others researching AI.
Also, with the funding backing Google DeepMind, the company has a high probability of driving innovation. Alphabet claims almost $120 billion in liquidity, and it generated nearly $32 billion in free cash flow in the first nine months of 2023. This gives the company tremendous resources to develop AI-related products and the ability to purchase the innovation it cannot create.
Such optionality gives investors fewer reasons to doubt Alphabet, and one has to wonder whether the sentiment against the Google parent was overblown. Despite the concerns of some, the stock has risen by more than 40% over the last 12 months.
GOOGL PE Ratio data by YCharts
Additionally, the increase has taken its P/E ratio to 26. While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. That lower valuation could be an opportunity to buy this stock as it uses its AI knowledge base and vast resources to remain a force in the artificial intelligence industry.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet and Amazon. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Palantir Technologies. 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. | While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. For example, in 2023, "advanced analytics and propensity models in Foundry helped [UniCredit] generate a four-fold increase in customer redemption of protection products through better targeting." In a Dec. 7, 2023 interview with Fox Business, Palantir co-founder and CEO Alex Karp said, "We just can't keep up with our product demand...We are just breaking at the seams in the U.S." The numbers certainly back that statement up. | While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). However, Alphabet has responded with its own generative AI tool called Bard. | While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. AI analysis can help companies optimize their operations Jake Lerch (Palantir Technologies): With the stock up 178% year to date, 2023 has been an incredible year for Palantir Technologies (NYSE: PLTR) and its shareholders. AI isn't just about what you see; it's about what you say and hear Justin Pope (SoundHound AI): Much of the hype around AI has focused on large language models like ChatGPT, but there are other ways to use AI that investors may not be fully aware of. | While not inexpensive, its P/E is lower than those of Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Microsoft. As a company, SoundHound AI is just getting started. It's way too early to count out this "AI-first" company Will Healy (Alphabet): The narrative in the AI space seems to have turned away from Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). |
||
12031.0 | 2023-12-16 20:00:00 UTC | AAPL Quantitative Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-10 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
||
12032.0 | 2023-12-16 18:00:00 UTC | Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-11 | If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $368.80 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
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 29.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 30.44% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 25.26% so far this year and it's up approximately 24.84% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $346.17 and $435.54.
The ETF has a beta of 1 and standard deviation of 17.49% 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
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $397.71 billion in assets, SPDR S&P 500 ETF has $456.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. 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. | Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard S&P 500 ETF (VOO), a passively managed exchange traded fund launched on 09/09/2010. |
||
12033.0 | 2023-12-16 18:00:00 UTC | Is FlexShares Quality Dividend ETF (QDF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-flexshares-quality-dividend-etf-qdf-a-strong-etf-right-now-0 | Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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
The fund is sponsored by Flexshares. It has amassed assets over $1.66 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. QDF seeks to match the performance of the Northern Trust Quality Dividend Index before fees and expenses.
The Northern Trust Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust 1250 Index and the Index are selected based on expected dividend payment and fundamental factors.
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.
Annual operating expenses for QDF are 0.37%, which makes it on par with most peer products in the space.
QDF's 12-month trailing dividend yield is 2.19%.
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.
For QDF, it has heaviest allocation in the Information Technology sector --about 31.40% of the portfolio --while Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG).
Its top 10 holdings account for approximately 34.12% of QDF's total assets under management.
Performance and Risk
The ETF return is roughly 19.10% so far this year and is up about 20.04% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $51.86 and $61.93.
The fund has a beta of 0.98 and standard deviation of 16.04% for the trailing three-year period, which makes QDF a medium risk choice in this particular space. With about 143 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $48.85 billion in assets, Vanguard Total Stock Market ETF has $344.19 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares Quality Dividend ETF (QDF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. | Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.45% of total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market. |
||
12034.0 | 2023-12-16 18:00:00 UTC | Is FlexShares STOXX US ESG Select Index Fund (ESG) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-flexshares-stoxx-us-esg-select-index-fund-esg-a-strong-etf-right-now-0 | Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $204.22 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ESG is managed by Flexshares. Before fees and expenses, this particular fund seeks to match the performance of the STOXX USA ESG Impact Index.
The STOXX USA ESG Select KPIs Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of environmental, social and governance characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.32%.
The fund has a 12-month trailing dividend yield of 1.11%.
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 25.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
ESG's top 10 holdings account for about 34.71% of its total assets under management.
Performance and Risk
The ETF return is roughly 26.91% so far this year and is up about 26.91% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $90.43 and $115.26.
The fund has a beta of 1.03 and standard deviation of 17.87% for the trailing three-year period. With about 266 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares STOXX US ESG Select Index Fund 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.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.40 billion in assets, iShares ESG Aware MSCI USA ETF has $13.32 billion. JEPQ has an expense ratio of 0.35% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FlexShares STOXX US ESG Select Index Fund (ESG): 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
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): 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, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results. | Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. | Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. | Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. |
||
12035.0 | 2023-12-16 18:00:00 UTC | Wall St futures inch up as investors pin hopes on Fed rate cuts | AAPL | https://www.nasdaq.com/articles/wall-st-futures-inch-up-as-investors-pin-hopes-on-fed-rate-cuts | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03%
Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year.
The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over.
Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024. FEDWATCH
The S&P 500 marked a seventh straight week of gains on Friday, its longest winning streak since 2017, while the blue-chip Dow .DJI is trading near all-time highs.
Housing starts number for November is due at 8:30 a.m. ET. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge.
San Francisco Fed President Mary Daly said on Monday that cuts to the U.S. central bank's benchmark rate are likely be appropriate next year because of an improvement in inflation this year, the Wall Street Journal reported.
Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are scheduled to speak later in the day. Daly and Bostic are voting members in the FOMC's rate-setting committee next year.
At 5:36 a.m. ET, Dow e-minis 1YMcv1 were up 21 points, or 0.06%, S&P 500 e-minis EScv1 were up 3.25 points, or 0.07%, and Nasdaq 100 e-minis NQcv1 were up 4.5 points, or 0.03%.
Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices.
PepsiCo PEP.O slipped 0.6% after J.P. Morgan downgraded the stock to "neutral" from "overweight".
Plug Power PLUG.O fell 3.4% after Piper Sandler downgraded the hydrogen fuel cell firm to "underweight".
(Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
(([email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge. | Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03% Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year. Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are scheduled to speak later in the day. | Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. Futures up: Dow 0.06%, S&P 0.07%, Nasdaq 0.03% Dec 19 (Reuters) - U.S. stock index futures edged higher on Tuesday, building on strong gains in recent weeks as investors continued to bet on a policy pivot by the Federal Reserve next year. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. | Apple shares AAPL.O were flat in premarket trading after the company said it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The benchmark S&P 500 .SPX trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024. |
||
12036.0 | 2023-12-16 18:00:00 UTC | 49.1% of Warren Buffett's $373 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks | AAPL | https://www.nasdaq.com/articles/49.1-of-warren-buffetts-%24373-billion-portfolio-is-invested-in-3-artificial-intelligence-ai | Warren Buffett has led the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) for more than 50 years. Between 1965 (when he took control of Berkshire) and 2022, the shares delivered a whopping 3,787,464% gain.
That translates to a 19.8% compound annual return, which is about twice the return of the benchmark S&P 500 index. It could have turned an investment of just $100 in 1965 into more than $3.7 million today. By comparison, the same investment in the S&P 500 at that time would have grown to just $24,700.
Buffett has a simple, but effective strategy
The simplest investment strategies are often the best. Buffett likes to buy stakes in profitable companies that are delivering steady growth, especially if they have strong management teams. He also favors companies returning money to shareholders through dividends and stock buybacks.
He combines those attributes with a long time horizon, which allows the effects of compound growth to build his portfolio's value.
Buffett certainly doesn't chase the lateststock market trends even those as strong as artificial intelligence (AI), which whipped investors into a frenzy throughout 2023. That said, Berkshire does own several AI stocks, even if AI isn't the reason Buffett and his team originally purchased them.
Investors might be surprised to know the following three AI stocks account for a whopping 49.1% of Berkshire's $373 billion portfolio of publicly traded stocks.
Image source: The Motley Fool.
1. Snowflake: 0.3% of Berkshire Hathaway's portfolio
Snowflake (NYSE: SNOW) is a leading provider of cloud computing services to businesses. It only represents 0.3% of Berkshire's portfolio, but it's quickly becoming one of the most direct AI plays owned by the investment company.
Snowflake's Data Cloud was revolutionary when it launched in 2018. It helps large, complex organizations aggregate their data from different cloud providers so it's all in one place for maximum visibility. From there, companies can use powerful analytics tools to draw valuable insights from the data.
Snowflake recently launched Cortex, a brand new platform featuring AI tools to complement its cloud services. It Document AI service uses a large language model to help businesses extract valuable insights from data in unstructured formats like contracts or invoices. Then there is Universal Search, which allows users to find critical information within Snowflake using natural language instead of programming language, so even non-technical employees can draw value from their organization's data.
Cortex also includes a generative AI-powered chatbot called Snowflake Copilot, which serves as a virtual assistant. It's capable of turning text-based prompts into computer code, which can rapidly speed up software development.
Snowflake continues to expand its workforce, with its research and development department growing the fastest. That bodes well for future product releases on the AI front, which will create new opportunities to generate revenue. The company expects to bring in $2.6 billion for its fiscal 2024 (which ends Jan. 31), but it isn't profitable, nor does it pay a dividend.
Berkshire's decision to invest in Snowflake stock was likely made by a portfolio manager rather than by Buffett himself. Nonetheless, it's shaping up to be a great long-term AI play.
2. Amazon: 0.4% of Berkshire Hathaway's portfolio
Amazon (NASDAQ: AMZN) is one of the most diverse technology companies in the world, with dominant positions in industries like e-commerce, cloud computing, streaming, and digital advertising. Now, it's quickly becoming one of the most diverse opportunities in AI.
Amazon is focused on delivering the widest possible range of AI products and services to businesses through its cloud computing arm, Amazon Web Services (AWS). The company has already launched its own data center chips, Trainium and Inferentia, which are designed to compete with Nvidia's industry-leading hardware. Plus, AWS offers businesses a growing number of large language models to accelerate the development of AI applications.
In fact, Amazon recently made a $4 billion investment into leading AI start-up Anthropic. As part of the deal, AWS will be Anthropic's primary cloud provider, and Anthropic will train its future models on Amazon's chips. Plus, Anthropic will make those models available to AWS customers, which will help differentiate the cloud platform from its competitors.
The cloud might be Amazon's most lucrative AI opportunity, but it isn't its only one. The company uses an AI recommendation engine on Amazon.com to show customers products they are most likely to buy. It also uses AI on its Prime streaming service during top broadcasts like the NFL's Thursday Night Football; it ingests millions of data points from each game to display key statistics that keep viewers informed at the highest possible level.
Berkshire Hathaway purchased Amazon stock in 2019, and its position is relatively small. But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Given Amazon's growing exposure to AI, Berkshire might wish it owned more of the stock when it looks back in a few years.
3. Apple: 48.4% of Berkshire Hathaway's portfolio
Apple is worth over $3 trillion, making it the most valuable company in the world. Berkshire started betting on the company in 2016, and it has since plowed about $35 billion into the stock. Its position is worth $181 billion as of this writing, so it accounts for a whopping 48.4% of Berkshire's stock portfolio.
That isn't surprising because Apple has all the attributes Buffett loves. Its chief executive officer, Tim Cook, has led the company to consistent growth and monster profits since he took the job in 2011. Plus, Apple returns enormous amounts of that money to shareholders, including $15 billion in dividends and $77.5 billion in stock buybacks during its fiscal 2023 (which ended Sept. 30) alone.
Consumers and investors know Apple best for hardware like the iPhone, iPad, and Mac personal computers. But the company subtly uses AI throughout all of them. AI powers the autocorrect feature on all Apple keyboards, and the Siri voice assistant. Apple Music also relies on AI to learn what listeners like, so it can feed them more of that content to keep them engaged.
Plus, the Apple-designed A17 Pro chip inside the new iPhone 15 lineup can power those AI workloads on-device faster than ever. As more smartphone features use AI, putting next-generation chips in those devices can reduce their dependence on external data centers for computing power, which leads to a faster, more seamless experience for the user.
Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos. Reports suggest one such application, Ajax GPT, outperforms OpenAI's GPT 3.5 model -- the original technology that powered ChatGPT.
That suggests Apple is rapidly catching up to some of the leading developers in the AI industry, which could lead to powerful new features for its products in the coming years. Buffett and his team might look like rock stars if Apple becomes a real player in AI, given Berkshire's gigantic position in the stock.
Should you invest $1,000 in Snowflake right now?
Before you buy stock in Snowflake, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Nvidia, and Snowflake. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. It Document AI service uses a large language model to help businesses extract valuable insights from data in unstructured formats like contracts or invoices. It also uses AI on its Prime streaming service during top broadcasts like the NFL's Thursday Night Football; it ingests millions of data points from each game to display key statistics that keep viewers informed at the highest possible level. | But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Snowflake: 0.3% of Berkshire Hathaway's portfolio Snowflake (NYSE: SNOW) is a leading provider of cloud computing services to businesses. Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos. | But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. That said, Berkshire does own several AI stocks, even if AI isn't the reason Buffett and his team originally purchased them. Speculation also is swirling that Apple is pumping millions of dollars per day into AI units across the company -- units that are building everything from conversational AI models to generative AI applications, capable of crafting text, images, and videos. | But Amazon is on track to generate $523 billion in revenue in 2023, which is even more than Apple (NASDAQ: AAPL), the largest company in the world. Should you invest $1,000 in Snowflake right now? Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Snowflake wasn't one of them. |
||
12037.0 | 2023-12-16 17:00:00 UTC | 2 Top Warren Buffett Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-right-now-14 | Warren Buffett is considered among the greatest investors of all time, having helped Berkshire Hathaway generate a compound annual gain of 19.8% from 1965 to 2022, smashing the S&P 500's total return of 9.9%. With Buffett's long track record, investors would be wise to read about his techniques, which he generously shares in his annual letter to shareholders. In recent years, Buffett has highlighted the importance of retained earnings.
Let's delve into the retained earnings formula, explore why Buffett favors this metric, and highlight two stocks in Berkshire's portfolio that excel at it.
What are retained earnings?
Retained earnings is a line item on the balance sheet demonstrating a company's accumulated profits over its lifetime. It is calculated by taking a company's net lifetime earnings and subtracting its dividends paid (and any net losses). Companies can use retained earnings to expand, make acquisitions, pay down debt, and repurchase their stock.
Buffett prefers to simplify the metric by focusing only on a company's annual earnings and dividends paid. That is because share repurchases can significantly distort the metric you see on the balance sheet. One of Buffett's favorite stocks, Apple, has surprisingly low lifetime retained earnings, at -$214 million. This is because of Apple's sheer number of share repurchases through the constructive retirement method, which assumes the shares will never be reissued, affecting retained earnings. Notably, Apple spent $77.5 billion on share repurchases in its fiscal year 2023 ended Sept. 30.
Two Warren Buffett stocks that excel in retained earnings
Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). In what is likely more than a mere coincidence, those two stocks are Berkshire's second- and third-largest holdings behind Apple, respectively.
First, Bank of America is the second-largest bank in the world by market capitalization, totaling about $265 billion. Over the trailing 12 months, Bank of America generated $30.5 billion in net income and paid roughly $9 billion in total dividends, resulting in retained earnings topping $21.5 billion during that time frame.
With its retained earnings, Bank of America has aggressively repurchased its stock -- retiring more than 18% of its shares outstanding over the past five years. Buffett recently wrote: "The math isn't complicated: When the share count goes down, your interest in our many businesses goes up. Every small bit helps if repurchases are made at value-accretive prices."
Nonetheless, despite Bank of America's share repurchases and a higher-than-average annual dividend yield of 2.9%, its stock has only generated a total return (price appreciation plus dividends) of 55% over the past five years, trailing the benchmark S&P 500's trailing return of 97%.
Bank stocks have underperformed recently either due to self-inflicted wounds like scandals around opening fake accounts or macroeconomic events largely out of a bank's control, like rising interest rates. Nonetheless, using the common valuation metric for bank stocks of price-to-book ratio, Bank of America currently trades at 1, meaning the market isn't placing a premium on its net assets like it does competitor JPMorgan Chase's price-to-book ratio of 1.6. Additionally, Bank of America's five-year price-to-book ratio average is 1.1, suggesting it might be slightly underpriced based on recent history.
Image source: The Motley Fool.
Next, let's look at the global financial services company American Express, a company Berkshire Hathaway first purchased in 1991, and which generated $8 billion in net income over the trailing 12 months. With an annual dividend yield of 1.3%, the company paid $1.7 billion in dividends to its shareholders. As a result, American Express produced roughly $6.3 billion in retained earnings.
Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. During that time, American Express outpaced its larger competitors by market cap, Mastercard and Visa, in stock buybacks (those companies repurchased 9% and 8%, respectively).
In addition to its share repurchases, American Express has acquired five fintech companies since 2019 -- all private companies for undisclosed prices. The strategy has proven helpful in fueling revenue growth as the company most recently set a sixth consecutive quarterly record, generating $15.4 billion for the third quarter of 2023.
Finally, American Express stock appears attractive when assessed against its competitors through the widely used valuation metric price-to-earnings (P/E) ratio. With a P/E multiple of about 17, American Express stands out as notably undervalued compared to Mastercard and Visa with P/E ratios of 36 and 31, respectively.
Are these two Warren Buffett stocks worth buying?
In 2020, Buffett wrote: "Retained earnings have propelled American business throughout our country's history. What worked for Carnegie and Rockefeller has, over the years, worked its magic for millions of shareholders as well."
These two stocks, plus Apple, make up roughly 65% of Berkshire's $370 billion stock portfolio, meaning they are likely some of Buffett's favorite stocks. Given Berkshire's past success, investors would be smart to follow the Oracle of Omaha's strategy and consider adding Bank of America and American Express to their portfolios.
Should you invest $1,000 in Bank of America right now?
Before you buy stock in Bank of America, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Collin Brantmeyer has positions in Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. 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. | Warren Buffett is considered among the greatest investors of all time, having helped Berkshire Hathaway generate a compound annual gain of 19.8% from 1965 to 2022, smashing the S&P 500's total return of 9.9%. Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. Given Berkshire's past success, investors would be smart to follow the Oracle of Omaha's strategy and consider adding Bank of America and American Express to their portfolios. | Two Warren Buffett stocks that excel in retained earnings Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). Over the trailing 12 months, Bank of America generated $30.5 billion in net income and paid roughly $9 billion in total dividends, resulting in retained earnings topping $21.5 billion during that time frame. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. | Two Warren Buffett stocks that excel in retained earnings Beyond best-in-class Apple, two stocks in Berkshire's portfolio also excel in retained earnings: Bank of America (NYSE: BAC) and American Express (NYSE: AXP). Like Bank of America, American Express is aggressively buying back its stock with retained earnings, lowering its shares outstanding by 14% over the past five years. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. | These two stocks, plus Apple, make up roughly 65% of Berkshire's $370 billion stock portfolio, meaning they are likely some of Buffett's favorite stocks. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn't one of them. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. |
||
12038.0 | 2023-12-16 15:00:00 UTC | TSMC to promote from within after chairman retires next year | AAPL | https://www.nasdaq.com/articles/tsmc-to-promote-from-within-after-chairman-retires-next-year | Adds details and quotes from paragraph 2
TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Wei succeed Mark Liu who will be retiring next year as chairman.
Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired.
Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement.
"I am confident that TSMC will continue to perform outstandingly in the years to come."
The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024.
Wei, who has a doctorate in electrical engineering from Yale University, has been on the company's board since 2017 and joined TSMC in 1998.
TSMC is a major supplier to companies like Apple and Nvidia.
(Reporting by Ben Blanchard; Editing by Jacqueline Wong and Bernadette Baum)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details and quotes from paragraph 2 TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement. Wei, who has a doctorate in electrical engineering from Yale University, has been on the company's board since 2017 and joined TSMC in 1998. | Wei succeed Mark Liu who will be retiring next year as chairman. Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024. | Company veteran Liu became Taiwan Semiconductor Manufacturing Co's TSM.N chairman in 2018 after founder Morris Chang, who remains the senior statesman of Taiwan's chip industry, retired. Liu, who joined TSMC in 1993, said he would like to put his "decades of semiconductor experience to other use, spend more time with my family, and start the next chapter of my life", according to a company statement. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024. | Adds details and quotes from paragraph 2 TAIPEI, Dec 19 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, said on Tuesday that its board had recommended that current CEO and Vice Chairman C.C. Wei succeed Mark Liu who will be retiring next year as chairman. The TSMC board's Nominating, Corporate Governance and Sustainability Committee recommended that Wei succeed Liu, subject to the election of the incoming board in June 2024. |
||
12039.0 | 2023-12-16 04:00:00 UTC | US STOCKS-Wall Street ends higher, extending rate-cut rally | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-higher-extending-rate-cut-rally | By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
A broad but modest rally boosted the S&P 500 and the Nasdaq to solid gains, while the Dow ended flat.
"Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "The data, whether it’s inflation, consumer spending or the labor market, are not ... deteriorating too fast or running too hot, so that Goldilocks scenario continues to play out."
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017.
The S&P 500 is now about 1.2% shy of its all-time closing high, amid growing optimism regarding policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"There’s still a disconnect between investors pricing in five to six cuts next year and the Fed dots that show three," Hainlin added. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
Later in the week, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
The Dow Jones Industrial Average .DJI held steady at 37,306.02, the S&P 500 .SPX gained 21.37 points, or 0.45%, to 4,740.56 and the Nasdaq Composite .IXIC added 90.89 points, or 0.61%, to 14,904.81.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL advanced the most, with real estate .SPLRCR and utilities .SPLRCU ending the session red.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks added 0.8%.
United States Steel X.N jumped 26.1% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.8% following its announcement that it was investigating "unauthorized" activity on its computer systems, which disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 132 new highs and 107 new lows.
Volume on U.S. exchanges was 11.75 billion shares, compared with the 11.88 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
(([email protected]; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts." |
||
12040.0 | 2023-12-16 04:00:00 UTC | After Hours Most Active for Dec 18, 2023 : PACB, AAPL, VTIP, EDAP, FTNT, AMZN, HPE, SKT, VZ, MRK, BVN, PFE | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-18-2023-%3A-pacb-aapl-vtip-edap-ftnt-amzn-hpe-skt-vz-mrk-bvn | The NASDAQ 100 After Hours Indicator is down -14.14 to 16,715.66. The total After hours volume is currently 109,710,697 shares traded.
The following are the most active stocks for the after hours session:
Pacific Biosciences of California, Inc. (PACB) is -0.03 at $9.16, with 4,409,695 shares traded. As reported in the last short interest update the days to cover for PACB is 7.507765; this calculation is based on the average trading volume of the stock.
Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vanguard Short-Term Inflation-Protected Securities Index Fund (VTIP) is -0.02 at $48.02, with 3,375,711 shares traded. This represents a 3.19% increase from its 52 Week Low.
EDAP TMS S.A. (EDAP) is unchanged at $5.00, with 3,132,663 shares traded. As reported by Zacks, the current mean recommendation for EDAP is in the "strong buy range".
Fortinet, Inc. (FTNT) is unchanged at $56.11, with 2,447,079 shares traded. FTNT's current last sale is 96.74% of the target price of $58.
Amazon.com, Inc. (AMZN) is -0.24 at $153.83, with 2,293,457 shares traded., following a 52-week high recorded in today's regular session.
Hewlett Packard Enterprise Company (HPE) is -0.04 at $16.75, with 2,237,291 shares traded. HPE's current last sale is 93.06% of the target price of $18.
Tanger Inc. (SKT) is unchanged at $27.90, with 2,141,915 shares traded. SKT's current last sale is 116.25% of the target price of $24.
Verizon Communications Inc. (VZ) is unchanged at $37.67, with 2,088,052 shares traded. VZ's current last sale is 91.88% of the target price of $41.
Merck & Company, Inc. (MRK) is unchanged at $106.04, with 1,859,336 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
Buenaventura Mining Company Inc. (BVN) is -0.28 at $12.82, with 1,662,949 shares traded., following a 52-week high recorded in today's regular session.
Pfizer, Inc. (PFE) is -0.06 at $27.00, with 1,445,536 shares traded. PFE's current last sale is 77.14% of the target price of $35.
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 -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for PACB is 7.507765; this calculation is based on the average trading volume of the stock. | Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 109,710,697 shares traded. | Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 109,710,697 shares traded. | Apple Inc. (AAPL) is -0.17 at $195.72, with 3,864,763 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 after hours session: |
||
12041.0 | 2023-12-16 04:00:00 UTC | Technology Sector Update for 12/18/2023: PCT, ADBE, AAPL, EBIX | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-18-2023%3A-pct-adbe-aapl-ebix | Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.1%.
The Philadelphia Semiconductor index was fractionally lower.
In corporate news, PureCycle Technologies (PCT) shares tumbled 43% after its flagship purification plant in Ohio was shut down due to mechanical problems. The company said the facility is currently under maintenance.
Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. Adobe shares rose 2.4%.
Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Apple shares were shedding 0.8%.
Ebix (EBIX) sank 63% after the company said it filed for Chapter 11 bankruptcy protection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. In corporate news, PureCycle Technologies (PCT) shares tumbled 43% after its flagship purification plant in Ohio was shut down due to mechanical problems. Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Adobe shares rose 2.4%. Apple shares were shedding 0.8%. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.1%. Ebix (EBIX) sank 63% after the company said it filed for Chapter 11 bankruptcy protection. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. The Philadelphia Semiconductor index was fractionally lower. Adobe shares rose 2.4%. |
||
12042.0 | 2023-12-16 04:00:00 UTC | Wall Street ends higher, extending rate-cut rally | AAPL | https://www.nasdaq.com/articles/wall-street-ends-higher-extending-rate-cut-rally | By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
A broad but modest rally boosted the S&P 500 and the Nasdaq to solid gains, while the Dow ended flat.
"Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. "The data, whether it’s inflation, consumer spending or the labor market, are not ... deteriorating too fast or running too hot, so that Goldilocks scenario continues to play out."
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017.
The S&P 500 is now about 1.2% shy of its all-time closing high, amid growing optimism regarding policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"There’s still a disconnect between investors pricing in five to six cuts next year and the Fed dots that show three," Hainlin added. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts."
Later in the week, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
The Dow Jones Industrial Average .DJI held steady at 37,306.02, the S&P 500 .SPX gained 21.37 points, or 0.45%, to 4,740.56 and the Nasdaq Composite .IXIC added 90.89 points, or 0.61%, to 14,904.81.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL advanced the most, with real estate .SPLRCR and utilities .SPLRCU ending the session red.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks added 0.8%.
United States Steel X.N jumped 26.1% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.8% following its announcement that it was investigating "unauthorized" activity on its computer systems, which disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 132 new highs and 107 new lows.
Volume on U.S. exchanges was 11.75 billion shares, compared with the 11.88 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
(([email protected]; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis. | Apple AAPL.O dipped 0.9% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. "Markets continue to run ahead of the Fed and it seems to imply that it’s less important how many cuts, just that there’s going to be cuts." |
||
12043.0 | 2023-12-16 04:00:00 UTC | Apple To Halt Sale Of Watch Series 9 And Ultra 2 | AAPL | https://www.nasdaq.com/articles/apple-to-halt-sale-of-watch-series-9-and-ultra-2 | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States.
According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week.
The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. ET on Thursday, December 21. In-store inventory will no longer be available from Apple retail locations after December 24.
The decision is based on an ITC ruling related to a patent dispute between Apple and medical technology company Masimo around the Apple Watch's blood oxygen sensor technology.
The International Trade Commission announced its ruling in October, upholding a judge's decision from January. This sent the case to the Biden administration for a 60-day Presidential Review Period.
During this process, President Biden could veto the ruling, although this has not yet occurred. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision.
In a statement, Masimo said the ban "demonstrates that even the world's most powerful company must abide by the law."
"The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said. "The ITC undertook a thorough legal process and its expert judgment in this matter should be respected, protecting intellectual property rights and maintaining public trust in the United States' patent system."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision. "The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. |
||
12044.0 | 2023-12-16 02:00:00 UTC | US STOCKS-Wall St builds on rally as Fed euphoria lingers | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-builds-on-rally-as-fed-euphoria-lingers | By Stephen Culp
NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data.
All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains.
Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017, fueled by optimism of policy rate cuts in 2024, a fervor that Fed policy makers attempted to rein in on Monday.
The S&P 500 was last about 1.1% shy of its all-time record close, reached in January 2022.
"It's a carry-over from the seven-week advance that we’ve seen, reflecting the confirmation by the Fed that they are likely finished raising rates and that they will start to cut interest rates at least by the second quarter of 2024," said Sam Stovall, chief investment strategist of CFRA Research in New York. "But trees don’t grow to the sky, so sooner or later stocks will take a breather and digest some of these gains."
Chicago Fed President Austan Goolsbee warned that the central bank has not pre-committed to cutting rates anytime soon, while Cleveland Fed President Loretta Mester said financial markets had got "a little bit ahead" of the central bank with respect to the timing and extent of interest rate cuts.
Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool.
"The Fed would like the market to respond in a more measured fashion, while also reminding investors that since the Fed is data-dependent, there's no guarantee that what we think today will actually come to fruition," Stovall added.
Later in the week, as the Christmas holiday draws near, the Commerce Department is expected to release its third and final take on third-quarter GDP on Thursday, to be followed by its broad-ranging Personal Consumption Expenditures (PCE) report on Friday, which will cover income growth, consumer spending, and crucially, inflation.
At 2:07 p.m. EST, the Dow Jones Industrial Average .DJI rose 19.2 points, or 0.05%, to 37,324.36, the S&P 500 .SPX gained 26.72 points, or 0.57%, to 4,745.91 and the Nasdaq Composite .IXIC added 107.49 points, or 0.73%, to 14,921.41.
Of the 11 major sectors in the S&P 500, communication services .SPLRCL were up the most, with real estate .SPLRCR suffering the biggest percentage drop.
Mounting attacks by militant groups on ships in the Red Sea sent crude prices higher over supply concerns, which in turn boosted energy stocks .SPNY, which have largely been left behind by the recent rally.
S&P 500 energy stocks were last up 1.1%.
United States Steel X.N jumped 27.2% to a more than 12-year high after Japan's Nippon Steel 5401.Tannounced it would buy the steelmaker in a $14.9 billion deal including debt.
Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum.
VF Corp VFC.N slid 7.6% after the Vans sneaker maker said it was investigating "unauthorized" activity on its computer systems, an incident that disrupted some of its business, including the ability to fulfill orders on its e-commerce site.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners.
The S&P 500 posted 29 new 52-week highs and two new lows; the Nasdaq Composite recorded 110 new highs and 90 new lows.
(Reporting by Stephen Culp in New York Additional reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Maju Samuel and Matthew Lewis)
(([email protected]; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. Even so, financial markets have priced in a 63.4% likelihood that the central bank will lower its Fed funds target rate by 25 basis points at its March monetary policy meeting, according to CME's FedWatch tool. | Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains. | Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains. | Apple AAPL.O dipped 0.7% as China's ban on the company's iPhones and other foreign-made gadgets gathered momentum. By Stephen Culp NEW YORK, Dec 18 (Reuters) - U.S. stocks advanced on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. All three major U.S. stock indexes gained ground in a broad but modest rally, with the S&P 500 and the Nasdaq advancing the most and the Dow inching toward yet another all-time closing high, posting nominal gains. |
||
12045.0 | 2023-12-16 02:00:00 UTC | Technology Sector Update for 12/18/2023: ADBE, AAPL, EBIX | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-18-2023%3A-adbe-aapl-ebix | Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%.
The Philadelphia Semiconductor index fell 0.4%.
In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. Adobe shares rose 2.4%.
Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Apple shares were shedding 0.7%.
Ebix (EBIX) sank 64% after the company said it filed for Chapter 11 bankruptcy protection.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Adobe shares rose 2.4%. Apple shares were shedding 0.7%. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. In corporate news, Adobe (ADBE) and Figma said they were terminating their planned $20 billion merger because there's no "clear path" to get clearance from EU and UK regulators. | Apple (AAPL) will pause US sales of its Series 9 and Ultra 2 smartwatches from this week as it awaits a decision related to the US International Trade Commission's order that may potentially ban imports of the devices, several media outlets reported Monday. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.3% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.5%. The Philadelphia Semiconductor index fell 0.4%. |
||
12046.0 | 2023-12-16 00:00:00 UTC | FOCUS-Goldman Sachs faces rocky exit from Apple credit card partnership | AAPL | https://www.nasdaq.com/articles/focus-goldman-sachs-faces-rocky-exit-from-apple-credit-card-partnership | By Saeed Azhar and Lananh Nguyen
NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable.
In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks.
Goldman does not break out how much its stake is worth.
The expected unwinding of the Apple-Goldman partnership is another blow for CEO David Solomon's consumer strategy, which aimed to broaden the bank's revenue beyond its traditional mainstays of trading and investment banking.
The potential writedown on the Apple card would be the latest in a string of losses from Goldman's ill-fated foray into consumer banking, analysts said. Goldman does not break out the financial details of the card business in its results.
Goldman Sachs declined to comment.
Prospective bidders will likely push Apple to change the terms of the deal, the two sources said.
They will likely seek access to Apple's proprietary credit card data, two other sources familiar with the business, said. Apple cardholders' data is not sold to third parties for marketing or advertising, according to its website.
Credit card issuers such as Synchrony Financial SYF.N, Citigroup C.N and Capital One COF.N would be logical partners to take on the venture if terms are changed, according to the two sources and another source familiar with the situation.
Synchrony declined to comment. Separately, its CEO Brian Doubles said at a conference this month that "you've got to have a really good risk-return equation" for card deals.
Citigroup C.N declined to comment. Capital One did not respond to Reuters requests for comment.
Apple recently sent a proposal that would enable Goldman to exit the contract in the next 12 to 15 months, The Wall Street Journal reported last month, citing people briefed on the matter.
Apple said it was focused on providing an "incredible experience" for customers, but declined to comment on the Goldman deal talks or terms.
'STRATEGIC ALTERNATIVES'
After scaling back its retail ambitions last year, Solomon announced in February that Goldman was looking for "strategic alternatives" for its consumer unit.
The bank began talks with Apple under former Goldman CEO Lloyd Blankfein, who left in 2018, to create a credit card that would tap into the tech giant's enormous customer base. Stephen Scherr, who led Goldman's consumer division and later became its finance chief, was among its lead negotiators.
Solomon took the helm in late 2018 and the Apple card was introduced almost a year later. By 2022, the parties had renegotiated a deal that would last until the end of the decade, according to a person familiar with the situation.
Solomon told analysts in October that the bank was trying to get rid of the "drag" on earnings from its credit card business, which also includes a partnership with General Motors.
"Our partnerships with Apple and GM are long-term contracts," Solomon said at the time. "And we don't have the unilateral right to exit those partnerships."
Analysts interpreted his comments as a signal the card operations were losing money.
When Apple first shopped the deal with potential partners, other banks including JPMorgan Chase JPM.N passed because their potential cut of profits was too small, according to one of the sources familiar with the matter and a separate source who was also aware of Apple's original proposal, who declined to be identified discussing private negotiations.
JPMorgan declined to comment.
New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service.
Goldman was responsible for setting aside the provisions for credit losses instead of sharing them with Apple, according to the two sources familiar with the business.
The Apple card also posed an underwriting challenge. Goldman's clients are typically wealthy individuals, and it had little experience making loans to less-affluent customers, according to analysts. As the two companies sought to boost revenue, they granted cards to customers with lower credit scores, according to one of the sources familiar with the situation.
As Goldman set aside more money for bad loans, the paper losses for its consumer business mounted, according to earnings filings.
The companies also tried to tempt new customers with the promise of "no annual fees, foreign transaction fees, or late fees," Apple said on its website.
They also introduced high-yield savings accounts for card holders in April, enabling Goldman to gather $10 billion of deposits by August, Apple said at the time.
Actual loan losses would eventually be shared among the two partners, one of the sources familiar with the business said. The business costs were also divided, with Apple paying for marketing while and Goldman handled customer service, the person said.
"Goldman had no meaningful presence in the credit card business," said Mike Taiano, vice president at Moody’s. "This was a big deal...they wanted to break into the card business, so they were probably willing to take less favorable economics."
(Reporting by Saeed Azhar and Lananh Nguyen in New York, additional reporting by Stephen Nellis in San Francisco, Nupur Anand and Tatiana Bautzer in New York; Editing by Anna Driver)
(([email protected]; +1 347 908-6341; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks. New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service. | By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. In searching for a buyer for its share of the partnership, Goldman will face pressure from bidders to reduce the value of its stake in order to make the price more attractive, according to two sources familiar with the matter who declined to be identified discussing potential talks. New credit card businesses typically lose money in their early years, in part because regulations require banks to set aside about 7% of projected sales to cover expected losses, said Warren Kornfeld, senior vice president at Moody's Investors Service. | By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. When Apple first shopped the deal with potential partners, other banks including JPMorgan Chase JPM.N passed because their potential cut of profits was too small, according to one of the sources familiar with the matter and a separate source who was also aware of Apple's original proposal, who declined to be identified discussing private negotiations. Goldman was responsible for setting aside the provisions for credit losses instead of sharing them with Apple, according to the two sources familiar with the business. | By Saeed Azhar and Lananh Nguyen NEW YORK, Dec 18 (Reuters) - Four years after Goldman Sachs GS.N introduced a credit card with Apple AAPL.O, the Wall Street giant faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. Credit card issuers such as Synchrony Financial SYF.N, Citigroup C.N and Capital One COF.N would be logical partners to take on the venture if terms are changed, according to the two sources and another source familiar with the situation. Apple said it was focused on providing an "incredible experience" for customers, but declined to comment on the Goldman deal talks or terms. |
||
12047.0 | 2023-12-16 00:00:00 UTC | EXCLUSIVE-US lawmakers warn Biden to probe EU targeting of tech firms -letter | AAPL | https://www.nasdaq.com/articles/exclusive-us-lawmakers-warn-biden-to-probe-eu-targeting-of-tech-firms-letter | By Martin Coulter
LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday.
Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers.
From March 2024, these companies — as well as TikTok's Chinese owner ByteDance — will be required to make their messaging apps work with rivals and let users choose which ones they want pre-installed on their devices.
In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly.
"Securing our leadership in this sector is imperative for our economy and American workers," the letter said. "The designation of leading U.S. companies as 'gatekeepers' threatens to upend the U.S. economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers."
The European Commission and the White House did not immediately respond to requests for comment.
Europe is seen by some experts as the global leader in tech regulation. The bloc's DMA and the DSA (Digital Services Act) are attempts at tailoring laws to target the Big Tech companies.
The letter questioned why Chinese companies Alibaba, Huawei, and Tencent had avoided designation and why European companies had avoided any scrutiny. "The EU inexplicably failed to designate any European retailers, content-sharing platforms, payment firms, and telcos," it said.
Signatories of the letter — including Representative Lou Correa, a Democrat, and Thomas Massie, a Republican, — called on Biden to seek assurances from EU lawmakers the DMA will not be unfairly used to target U.S. companies.
The U.S. government has previously warned the EU against over-regulating American technology companies. When the DMA was still being drafted, the White House National Security Council told EU representatives that using the bill to solely target American companies would hinder their ability to work together.
Since 2021, the EU-U.S. Trade and Technology Council (TTC) has sought to harmonise technology regulation on either side of the Atlantic, with lawmakers seeking consensus on topics such as supply chain security, export controls and foreign investment.
How the EU's Digital Markets Act challenges Big Tech https://www.reuters.com/technology/how-eus-digital-markets-act-challenges-big-tech-2023-09-06/
(Reporting by Martin Coulter; Editing by Franklin Paul and Lisa Shumaker)
(([email protected]; Follow me on Twitter @martinjbcoulter; +447436546182;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. Signatories of the letter — including Representative Lou Correa, a Democrat, and Thomas Massie, a Republican, — called on Biden to seek assurances from EU lawmakers the DMA will not be unfairly used to target U.S. companies. When the DMA was still being drafted, the White House National Security Council told EU representatives that using the bill to solely target American companies would hinder their ability to work together. | Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly. | Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation are unfairly targeting U.S. companies and not including many Chinese or EU firms, according to a letter seen by Reuters on Monday. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly. | Under the European Union's Digital Markets Act (DMA), five major U.S. tech companies — Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O and Microsoft MSFT.O — were designated "gatekeeper" service providers. In a letter seen by Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests and called on Biden to secure commitments from the EU the rules will be enforced fairly. The bloc's DMA and the DSA (Digital Services Act) are attempts at tailoring laws to target the Big Tech companies. |
||
12048.0 | 2023-12-16 00:00:00 UTC | Can the 'Magnificent Seven' Continue to Lead the Market Higher in 2024? | AAPL | https://www.nasdaq.com/articles/can-the-magnificent-seven-continue-to-lead-the-market-higher-in-2024 | M
arket commentators love tortured acronyms or catchy phrases when it comes to big tech stocks. First it was FANG, which was reputedly first used by CNBC's Jim Cramer. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Then corporate expansion and a shifting tech landscape caught up with that one too. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. That led to MAMAA: Meta, Apple, Microsoft, Amazon, and Alphabet becoming the phrase du jour.
Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use.
There is always a group of outperformers but is a fluid thing, almost by definition. Tech is about meeting trends and grabbing opportunities, and while doing that well can lead to rapid, short-term success, there is no guarantee that even the best companies will maintain their outperformance for any length of time. Nor is it true that, as MSFT showed all too well, one that missed out for a while cannot burst back onto the scene with a change of management and/or focus.
So the obvious answer to the question, “Can the Magnificent Seven continue to lead the market in 2024?” is no. That is not because those seven stock can’t or won’t do well. In fact, if the bond and stock markets are right and the Fed cuts rates early next year, they almost certainly will perform well.
But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now. Maybe it will have to include at least one company making weight-loss drugs, or the long-awaited and oft-predicted rise of fuel cells will force the inclusion of a name from that industry, or a new social media platform could take off.
Or maybe what we will be talking about a year from now will be a stock in a field that most of us have never heard of, or have already written off. Let’s face it, how many of you were screaming about AI at this time last year when NVDA was trading at around $150 after it had lost half of its value in around a year? My guess is not that many would have imagined NVDA to have gone from $150 to almost $500 in twelve months.
Then there is the very real chance that the market will fall next year. That isn’t out of the realm of the possible, for several reasons: The fight against inflation is still ongoing and may not have as happy an ending as is now generally assumed. There are two major wars in strategically important parts of the world which could yet get worse. Also, 2024 is an election year in a country where “divided” doesn’t even come close to describing the political environment, and where a win for either party will have a third of the country believing that the end of America is coming. The chance of any or all of those things derailing stocks next year is another subject for another day, but they do have to be considered.
All things considered, the chance of the “Magnificent Seven” -- as that phrase is currently understood -- leading the market higher next year is close to zero. That may be because the market doesn’t go up at all next year, or it may be because trends and developments in technology create a shifting landscape, but either way, it looks like someone will have to come up with a new acronym or cute phrase to describe next year’s stock market leaders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Facebook and Google changed their names to better reflect the fact that they were no longer one-product affairs, streaming wars made Netflix less of a rapid growth stock, and the once moribund Microsoft (MSFT) took off under Satya Nadella, forcing their inclusion. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. | Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. That stood for Facebook (now Meta: META), Amazon (AMZN), Netflix (NFLX), and Google (now Alphabet: GOOG, GOOGL). Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. | Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. That one is credited to a Bank of America (BAC) analyst, but the very fact that over the last few years there have been so many iterations of the way analysts and pundits refer to outperforming big tech stocks shows why such things are of little use. | Then, a few years later, Apple (AAPL) was added to the mix, and we got the less catchy, but probably more representative, FAANG. Recently, though, with everything having to be adjusted to allow for the AI revolution and with EVs becoming much more mainstream, the most popular phrase for big tech stocks has become “The Magnificent Seven,” adding Nvidia (NVDA) and Tesla (TSLA) alongside Amazon, Apple, Microsoft, Alphabet, and Meta. But I say the answer is "no" is because if the ever-changing history of who's in this group tells us anything, it is that the name of the group itself will probably have changed twelve months from now. |
||
12049.0 | 2023-12-16 00:00:00 UTC | EXCLUSIVE-US lawmakers urge Biden to probe EU targeting of tech firms -letter | AAPL | https://www.nasdaq.com/articles/exclusive-us-lawmakers-urge-biden-to-probe-eu-targeting-of-tech-firms-letter | By Martin Coulter
LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests.
Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers.
From March 2024, these companies – as well as TikTok's Chinese owner ByteDance - will be required to make their messaging apps inter-operate with rivals and let users choose upfront which ones they want pre-installed on their devices.
In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly.
"Securing our leadership in this sector is imperative for our economy and American workers," the letter said. "The designation of leading U.S. companies as 'gatekeepers' threatens to upend the U.S. economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers."
(Reporting by Martin Coulter, Editing by Franklin Paul)
(([email protected]; Follow me on Twitter @martinjbcoulter; +447436546182;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. From March 2024, these companies – as well as TikTok's Chinese owner ByteDance - will be required to make their messaging apps inter-operate with rivals and let users choose upfront which ones they want pre-installed on their devices. | Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly. | Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. By Martin Coulter LONDON, Dec 18 (Reuters) - A bipartisan group of lawmakers has written to U.S. President Joe Biden, warning European technology regulation could threaten U.S. interests. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly. | Under the European Union’s Digital Markets Act (DMA), five major U.S. tech companies – Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.Om and Microsoft MSFT.O -- were designated "gatekeeper" service providers. In a letter shared exclusively with Reuters, 21 members of the U.S. House of Representatives warned the new rules could damage American economic and security interests, and called on Biden to secure commitments from the EU the rules will be enforced fairly. "Securing our leadership in this sector is imperative for our economy and American workers," the letter said. |
||
12050.0 | 2023-12-16 00:00:00 UTC | Dow Movers: INTC, CVX | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-intc-cvx-3 | In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Chevron has lost about 15.5% of its value.
And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.1%, and Merck, trading up 1.1% on the day.
VIDEO: Dow Movers: INTC, CVX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance. | In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Chevron has lost about 15.5% of its value. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. | In early trading on Monday, shares of Chevron topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Two other components making moves today are Apple, trading down 1.1%, and Merck, trading up 1.1% on the day. | And the worst performing Dow component thus far on the day is Intel, trading down 1.4%. Intel is showing a gain of 72.2% looking at the year to date performance. VIDEO: Dow Movers: INTC, CVX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
||
12051.0 | 2023-12-16 00:00:00 UTC | US STOCKS-Oil stocks lead Wall Street higher, U.S. Steel soars on buyout deal | AAPL | https://www.nasdaq.com/articles/us-stocks-oil-stocks-lead-wall-street-higher-u.s.-steel-soars-on-buyout-deal | By Sruthi Shankar and Johann M Cherian
Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal.
The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation boosted expectations that the U.S. central bank will soon ease its monetary policy.
The blue-chip Dow hit an all-time high for the fourth consecutive session, while the benchmark S&P 500 and the tech-heavy Nasdaq are trading near their highest levels of the year.
Oil majors Chevron CVX.Nclimbed 1.5% and Exxon Mobil XOM.Nadded 2.0% as crude prices LCOc1, CLc1 rallied more than 3.5% after attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions. O/R
The S&P 500 energy sub-index .SPNYclimbed 1.9%, leading gains among the 11 major S&P sectors.
Another big gainer was United States SteelX.N, which surged 26.0% to an over 12-year high after Japan's Nippon Steel 5401.Tsaid it would buy the steelmaker in a $14.9 billion deal including debt.
Investors will focus on economic data this week including the personal consumption expenditure index (PCE) - the Fed's preferred inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report to gauge the path of U.S. interest rates.
The benchmark S&P 500 marked a seventh straight week of gains on Friday - its longest winning streak since 2017 - fueled by optimism about a Fed policy pivot next year.
Traders are currently pricing in a 70% chance that the Fed will cut interest rates at least by 25 basis points in March, according to CME Group's FedWatch tool, even as top Fed policymakers pushed back on the ebullience.
Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
"There's still a dislocation between a seemingly dovish pivot that the market is expecting the Federal Reserve to take, and what economists are projecting," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
"The direction is the same, it's just that the velocity of cuts and the magnitude of cuts might not be on the same page."
At 10:04 a.m. ET, the Dow Jones Industrial Average .DJI was up 10.14 points, or 0.03%, at 37,315.30, the S&P 500 .SPX was up 17.45 points, or 0.37%, at 4,736.64, and the Nasdaq Composite .IXIC was up 54.51 points, or 0.37%, at 14,868.43.
Goldman Sachs raised its forecast for the S&P 500, which it now sees ending 2024 at 5,100, while decelerating inflation and Fed easing would keep real yields low.
Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said.
AdobeADBE.Oadded 1.6% after the Photoshop maker and Figma agreed to terminate their $20 billion merger announced last year.
VF CorpVFC.Ntumbled 8.5% after the Vans sneaker maker said it was investigating "unauthorized" activity on its computer systems, an incident that was likely to have a material impact on its business.
The S&P index recorded 23 new 52-week highs and two new lows, while the Nasdaq recorded 71 new highs and 46 new lows.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
(([email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation boosted expectations that the U.S. central bank will soon ease its monetary policy. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report. | Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report. | Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Investors will focus on economic data this week including the personal consumption expenditure index (PCE) - the Fed's preferred inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report to gauge the path of U.S. interest rates. | Among other single stocks, AppleAAPL.Oslipped 1.3% after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - U.S. stock indexes edged higher on Monday, with oil stocks in the lead after mounting attacks in the Red Sea lifted crude prices, while shares of U.S. Steel rocketed after a $14.9 billion buyout deal. Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report. |
||
12052.0 | 2023-12-16 00:00:00 UTC | Apple to halt US sales of Series 9, Ultra 2 smartwatches on patent dispute | AAPL | https://www.nasdaq.com/articles/apple-to-halt-us-sales-of-series-9-ultra-2-smartwatches-on-patent-dispute | Adds details, background
Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices.
The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights.
A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said.
The company said it would pause sales of the Watches from its website starting Dec. 21, and from Apple retail locations after December 24.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel and Anil D'Silva)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. The company said it would pause sales of the Watches from its website starting Dec. 21, and from Apple retail locations after December 24. | Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said. | Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Maju Samuel and Anil D'Silva) (([email protected])) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details, background Dec 18 (Reuters) - Apple AAPL.O said on Monday it would pause sales of its Series 9 and Ultra 2 smartwatches in the United States from this week, as it deals with a patent dispute over the technology that enables the blood oxygen feature on the devices. The move comes after an order in October from the U.S. International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo's MASI.O patent rights. A Presidential review period is in progress on the feature and while the review period will not end until Dec. 25, Apple is preemptively taking steps to comply should the ruling stand, the company said. |
||
12053.0 | 2023-12-16 00:00:00 UTC | 3 Outstanding Stocks to Buy if Interest Rates Fall Next Year | AAPL | https://www.nasdaq.com/articles/3-outstanding-stocks-to-buy-if-interest-rates-fall-next-year | There's reason to believe interest rates may decline in 2024, and that usually means it's a good idea to start investing in some interest-rate-sensitive stocks. In that line of thought, here's a look at why UPS (NYSE: UPS), Tesla (NASDAQ: TSLA), and machine vision company Cognex (NASDAQ: CGNX) are good ways to play this theme.
Why rates could fall next year
I'll start with a few words/charts on why rates could be lower. A quick look at the recent inflation data shows a continuation of a downtrend that began in the summer of 2022.
US Inflation Rate data by YCharts
The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. In addition, note that one-year and two-year rates are notably lower than the six-month rate, implying that the Federal Reserve target rate will be lower in one year than in six months.
10-Year Treasury Rate data by YCharts
While there's no guarantee the bond markets are right, history suggests higher interest rates, over an extended period, will result in lower inflation.
UPS
This stock will suit investors looking for solid returns and some income. UPS will benefit from the effect lower rates will have on the economy. That should result in increased volumes, or at least increased levels of the delivery volumes that management targets. In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment.
While it's true that UPS enjoyed a couple of boom years during the pandemic (as lockdowns drove customers into buying online), and according to Wall Street analysts, it won't get back to 2022 levels of sales of $100.3 billion until 2025, there are a couple of favorable things to bear in mind.
First, analyst forecasts have UPS generating earnings of $9.71 a share in 2024 and free cash flow (FCF) of $7.1 billion, putting the stock at 16.7 times 2024 earnings and less than 19 times FCF in 2024. Those are reasonable multiples for a stock that will be in volume recovery mode in 2024.
Second, UPS is achieving good traction in its goal of growing revenue in targeted markets like small and medium-sized businesses and healthcare. As such, it will emerge from the slowdown with a better revenue quality than when it entered it. Throw in a 4% dividend yield, and UPS is a solid choice for investors in 2024.
Tesla
Like UPS, Tesla will likely have a stronger underlying business coming out of a rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision.
In contrast to the internal combustion engine (ICE) market of recent decades, the electric vehicle (EV) market is not a low-single-digit type growth market; it's high-growth and relatively early-stage. That distinction impacts the decisions CEO Elon Musk has made this year.
In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. It's much documented that preserving market share is a crucial aim of a company in the early innings of a multiyear growth market, but what's less discussed is the importance of volume growth in reducing Tesla's cost per unit vehicle.
Image sources: Getty Images.
Volume growth justifies investment in facilities and technology that enables cost per unit vehicle cost reductions. For example, its average vehicle cost decreased from $39,500 in the fourth quarter of 2022 to $37,500 in the third quarter of 2023. That's a major plus in enabling Tesla to produce affordable cars. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs.
With lower rates, Tesla can raise prices and benefit from margin expansion after cutting its cost per vehicle on its established cars.
Cognex
This machine vision company will suit enterprising investors looking for a beaten-up stock with plenty of growth potential. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Slower consumer sales exacerbated the correction in e-commerce warehouse automation spending from the boom of previous years.
Image source: Getty Images.
All these issues hit Cognex in 2023, and its nine months of sales were down by 16% compared to the same period last year, with net income down a whopping 36%.
That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now.
Should you invest $1,000 in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Cognex, and Tesla. The Motley Fool recommends General Motors and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In addition, there's likely to be a positive margin mix impact as customers stop shifting to lower-cost delivery options the way they have been doing in the rising rate environment. Yes, Tesla is an automaker, meaning rate movements will impact its sales; consumers usually buy cars on credit, so monthly interest payments are a crucial part of the decision. It stands in good stead to win market share when ICE-heavy manufacturers like Honda and General Motors cut back on plans to produce lower-cost EVs. | In response to rising rates, Tesla reduced prices to keep cars affordable and maintain market share while enabling volume growth. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now. | US Inflation Rate data by YCharts The data was good enough to lower market interest rates, with the benchmark 10-year Treasury rate falling. That said, lower rates will help all these end markets, and all it will take is a few large orders from, say, consumer electronics companies (Apple is a Cognex customer), automakers (ICE, EV, and EV battery manufacturers), or e-commerce companies and the narrative and growth trajectory of Cognex will look dramatically different than it does now. Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. | This stock will suit investors looking for solid returns and some income. Higher interest rates hit Cognex's main end markets by slowing consumer electronics sales (which impacts investment in developing new production lines that use machine vision) and ICE sales (ICE automakers are pausing investment as well). Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and United Parcel Service wasn't one of them. |
||
12054.0 | 2023-12-16 00:00:00 UTC | US STOCKS-Wall St on course for higher open, eyes on data | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-on-course-for-higher-open-eyes-on-data | By Sruthi Shankar and Johann M Cherian
Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates.
The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. The blue-chip Dow .DJI notched its third consecutive session of record high on Friday, while the benchmark S&P 500 .SPX marked a seventh straight week of gains in its longest winning streak since 2017.
Economic data this week include the Personal Consumption Expenditure index (PCE) - the Fed's favored inflation gauge - weekly jobless claims, housing starts and the final reading of the third-quarter GDP report.
U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024.
Traders are currently pricing in a 75% chance that the Fed will cut interest rates at least by 25 basis points in March, according to CME Group's FedWatch tool, even as top Fed policymakers pushed back on the ebullience.
Cleveland Fed President Loretta Mester, a voting member next year, said financial markets had got "a little bit ahead" of the central bank on when to expect interest rate cuts, as per a report.
"There's still a dislocation between a seemingly dovish pivot that the market is expecting the Federal Reserve to take, and what economists are projecting," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.
"The direction is the same, it's just that the velocity of cuts and the magnitude of cuts might not be on the same page."
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.15%, S&P 500 e-minis EScv1 were up 13 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 25 points, or 0.15%.
Meanwhile, Goldman Sachs raised its forecast for the S&P 500, which it now sees ending 2024 at 5,100, while decelerating inflation and Fed easing would keep real yields low.
Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said.
Oil stocks Exxon Mobil XOM.Nand Chevron CVX.Nadvanced 1.4% each, as crude prices gained over 2% after attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions. O/R
United States SteelX.N surged 28.7% after Japan's Nippon Steel 5401.Tsaid it would buy the steelmaker in a $14.9 billion deal including debt.
AdobeADBE.Oadded 2% after the Photoshop maker and Figma agreed to terminate their $20 billion merger announced last year.
U.S.-listed shares of NioNIO.N climbed 9.0% after the company said it had signed an agreement with CYVN Holdings, for the latter to invest $2.2 billion in the Chinese electric vehicle maker.
(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Maju Samuel)
(([email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. | Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. | Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. U.S. equity markets rallied last week after the Fed left interest rates unchanged and officials' forecasts collectively priced in three quarters of a percentage point in cuts in 2024. | Among single stocks, AppleAAPL.Oslipped 0.6% in premarket trading after more Chinese agencies and state-backed companies asked their staff to not bring iPhones and other foreign devices to work, a report said. By Sruthi Shankar and Johann M Cherian Dec 18 (Reuters) - Wall Street's main stock indexes were on track to open higher on Monday as investors awaited economic data later in the week that could offer insights on when the Federal Reserve could start cutting interest rates. The main Wall Street indexes are looking to end 2023 on a high note as signs of slowing inflation and expectations that the U.S. central bank will soon ease its monetary policy attract buyers. |
End of preview. Expand
in Data Studio
README.md exists but content is empty.
- Downloads last month
- 85