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. |
||
12055.0 | 2023-12-16 00:00:00 UTC | Some Potential 2024 Winners Reside in QQQ, QQQM | AAPL | https://www.nasdaq.com/articles/some-potential-2024-winners-reside-in-qqq-qqqm | It’s the time of year when investors are treated to a slew of market predictions for the next year. The onslaught of those offerings is dizzying. Add those predictions up and it’s likely market participants can absorb hundreds of stock picks for the year ahead. That's neither efficient nor practical for many investors to have portfolios populated in the dozens or hundreds. The good news is that some of the stocks market observers are most bullish on for 2024 are found in several familiar, cost-effective ETFs. Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM).
The two Nasdaq-100 Index (NDX)-tracking ETFs have delivered stellar showings this year. They have surged 52.22% as of December 15. QQQ and QQQM may not deliver comparable performances in 2024. But more upside is possible for the ETFs next year. That's assuming predictions about some of the funds’ holdings prove accurate.
Familiar Names Could Lift QQQ, QQQM in 2024
This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. On aggregate basis, that group delivered jaw-dropping showings this year. Some analysts believe it’s possible some of the super seven could build on 2023 gains next year.
Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. Those issues look manageable.”
QQQ and QQQM have long been associated with growth investing. That's rightfully so given the ETFs’ large weights to tech and communication services stocks. But it might surprise some investors to learn the funds have some defensive exposure.
Take the case of Pepsico (PEP), which is the second-largest consumer staples holding in the ETFs behind Costco (COST).
“Fears that weight-loss drugs will curb snacking caused PepsiCo stock, at $168, to drop 7% in 2023. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average. It also yields 3% and has raised its dividend for 51 straight years, including a 10% increase this past summer,” according to Barron’s.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Alphabet is “expected to grow as fast as Microsoft, with earnings forecast to be up 15% in 2024, three times as quickly as Apple’s 5% growth. “Investors have been worried about slowing growth in Alphabet’s cloud computing division, the threat that artificial intelligence poses to its search business, and antitrust scrutiny. A confident Pepsi, though, said in October that it expects to deliver per-share earnings growth at the top of its high-single-digit annual target in 2024 after a projected 13% gain this year. | Those include the Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM). That group includes Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. And the stock trades for 20.6 times next year’s projected earnings, below its five-year average. | It’s the time of year when investors are treated to a slew of market predictions for the next year. Familiar Names Could Lift QQQ, QQQM in 2024 This year, QQQ and QQQM benefited in large part from significant exposure to the magnificent seven. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. | QQQ and QQQM may not deliver comparable performances in 2024. That's assuming predictions about some of the funds’ holdings prove accurate. Yet its stock trades for just 20 times earnings, a discount to both Microsoft and Apple’s 30 times, despite gaining 50% this year,” reported Andrew Bary for Barron’s. |
||
12056.0 | 2023-12-16 00:00:00 UTC | The Fed Pivot Arrives: The Magnificent Seven Should Benefit | AAPL | https://www.nasdaq.com/articles/the-fed-pivot-arrives-the-magnificent-seven-should-benefit | I
f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024.
Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. And now the central bank has given the market some confirmation that it is done with its rate hikes and is poised to initiate reductions soon.
As you can expect, stocks skyrocketed last week as investors celebrated the Fed’s gift. For the week, the S&P 500 gained 2.6% and is now less than 1.6% away from a record close set in January 2022. The Dow Jones Industrial Average added 2.7% during the week, after jumping more than 400 points on Thursday to surpass 37,000 for the first time. The Nasdaq gained 2.9% and is roughly 9% from its all-time intraday high. There is now some assurance that a year-end Santa Claus rally is now more than just a wish.
Investors don't need to look too far to find the source of the recent rally. With the Fed announcing its pivot from its hawkish stance to a dovish policy, growth stocks, particularly the "Magnificent Seven" mega-cap stocks, will now be in vogue. These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today.
Some investors who have missed the massive three-month rally are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 58%, while Microsoft the second largest, boasts a gain of 55%. But the impressiveness doesn’t stop there when considering that Tesla (up 134%) has doubled in value, while Meta has enjoyed a remarkable return of 170%.
There are a range of opinions as to whether there is still value to be gained in these mega-cap stocks, which have already been stellar performers. But while their collective valuation might have gotten a bit stretched, their tech leadership in the financial markets remain undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence.
While there are some reasons for caution as their collective valuation have soared, investors should position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk. In that vein, the Fed has done a solid job managing inflation which has dropped to 3.7% year-over-year in November, after hitting the highest levels in decades at over 9% in mid-2022. While the inflation is not yet at the Fed’s 2% target, the Fed has just told us they are done raising rates.
The Magnificent Seven stocks, aptly coined by Bank of America analyst Michael Hartnett, have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024 and making new all-time highs.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. Fed Chairman Jerome Powell, in the post-decision press briefing, mentioned that discussions about reducing rates were "clearly a topic of conversation" among policymakers. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. | These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. | These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. f there were any doubt for when the Federal Open Market Committee (FOMC) would be done with their interest rate hiking cycle, those doubts were blown away last Wednesday when the Fed not only maintained its pivotal policy rate unchanged, but also projected a reduction of 75 basis points in 2024. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. | These mega-cap tech giants consisting of Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) will be money-makers for investors who own then today. In other words, after eleven rate hikes over the past two years, which pushed the fed funds rate to its highest level in 22 years, the Fed just proclaimed that its efforts to fight inflation have worked. Investors don't need to look too far to find the source of the recent rally. |
||
12057.0 | 2023-12-16 00:00:00 UTC | This Is Apple's Most Important Growth Product Today (Hint: It's Not the iPhone) | AAPL | https://www.nasdaq.com/articles/this-is-apples-most-important-growth-product-today-hint%3A-its-not-the-iphone | The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Instead, services and accessories are driving revenue increases.
In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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 7, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple. The 10 stocks that made the cut could produce monster returns in the coming years. | The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Before you buy stock in Apple, 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 Apple wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | The iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. Before you buy stock in Apple, 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 Apple wasn't one of them. 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 iPhone has been critical to Apple's (NASDAQ: AAPL) growth over the past 16 years, but it's no longer a growth driver. In this video, Travis Hoium goes over why the iPhone is slowing and where investors should look for growth at Apple. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. |
||
12058.0 | 2023-12-16 00:00:00 UTC | 3 Stocks You Can Confidently Buy After a Market Downturn | AAPL | https://www.nasdaq.com/articles/3-stocks-you-can-confidently-buy-after-a-market-downturn-9 | Macroeconomic headwinds in 2022 caused a stock market sell-off that affected countless industries. The Nasdaq Composite index tumbled 33% throughout the year. Tech stocks were some of the hardest hit, as reductions in consumer spending meant multiple quarters of dismal earnings.
However, excitement over high-growth industries like artificial intelligence (AI) has triggered a recovery in 2023 and illustrated why a market downturn could be the best time to make a long-term investment in tech stocks. The Nasdaq Composite has surged 41% year to date, rewarding those who either held or bought at the bottom.
As a result, it's not a bad idea to get familiar with some of the best companies to invest in during a sell-off and be prepared to strike when the time is right. Here are three stocks you can confidently buy after a market downturn.
1. Nvidia
According to research firm Gartner, PC shipments fell 16% year over year in 2022. Spikes in inflation led to reductions in consumer spending on tech, with chipmakers hit hard. As a result, shares in Nvidia (NASDAQ: NVDA) plunged 50% in the 12 months leading to 2023.
However, the company came back better than ever this year, with its stock up 231% since Jan. 1 as its earnings hit new heights. The company profited from a boom in AI, which sent chip demand soaring. Nvidia's graphics processing units (GPUs) have become the preferred hardware for AI developers everywhere, with the company's revenue climbing 206% year over year in its most recent quarter (third quarter of fiscal 2024).
Data by YCharts
As a leading chipmaker, Nvidia supplies its GPUs to markets across tech. The company is an excellent option in a market downturn, as its stock will likely soar over the long term.
Additionally, the chart shows Nvidia's price-to-earnings ratio (P/E) and price-to-free cash flow ratio have both plunged since July, meaning its shares are currently trading at their cheapest position in months.
2. Apple
As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. In fact, the table shows the iPhone maker outperformed many of the biggest names in tech throughout 2022. Apple's performance amid economic challenges proved its resilience, as it became a haven for many investors.
Data by YCharts
In 2023, Apple has once again showcased its consistency. Macro headwinds have caught up with the company, as pullback from consumers led to repeated declines in product sales and a 3% year-over-year dip in revenue for fiscal 2023. Yet loyal investors continued to believe in its long-term growth, with Apple's stock up 52% year to date.
The company's nearly $100 billion in free cash flow, popular range of products and services, and considerable brand loyalty from consumers make it challenging to question Apple's ability to flourish over the next five to 10 years. Apple remains the biggest name in consumer tech and the home of a digital services business that posted revenue growth of 9% this year.
Services are another reason you can confidently invest in the tech giant, with the App Store and platforms like Apple TV+ hitting profit margins of more than 70%.
Moreover, Apple's stock has risen 377% over the last five years. Even if the company delivers half that growth over the next five years, it will still more than double the stock growth of competitors Amazon or Alphabet since 2018. As a result, a market downturn could be the perfect time to invest in this tech company and buy its stock at a bargain.
3. Microsoft
Like Apple, Microsoft's (NASDAQ: MSFT) stock often trades at a premium. However, years of consistency and stellar gains make it worth its high price tag, especially in a sell-off. The company has become a tech behemoth, with brands such as Windows, Office, Azure, and Xbox granting it lucrative positions in multiple industries.
Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn. The tech giant has rallied Wall Street by heavily investing in AI. A close partnership with ChatGPT developer OpenAI allowed Microsoft to introduce AI upgrades across its product lineup as it seeks to become the go-to for consumers and businesses everywhere seeking ways to integrate AI into their daily workflows.
Microsoft has significant potential in AI, with the market projected to develop at a compound annual growth rate of 37% until at least 2030. As a result, leading positions in productivity software and cloud computing could see Microsoft profit significantly from the sector as it expands its AI offerings.
Data by YCharts
This chart shows Microsoft's forward P/E and price-to-free cash flow are high at 33 and 44, indicating its stock isn't exactly a bargain. However, both figures are significantly lower than those of other companies active in AI. Microsoft is a company you can confidently invest in at almost any time, but especially during a market downturn.
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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. However, excitement over high-growth industries like artificial intelligence (AI) has triggered a recovery in 2023 and illustrated why a market downturn could be the best time to make a long-term investment in tech stocks. Macro headwinds have caught up with the company, as pullback from consumers led to repeated declines in product sales and a 3% year-over-year dip in revenue for fiscal 2023. | Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. Additionally, the chart shows Nvidia's price-to-earnings ratio (P/E) and price-to-free cash flow ratio have both plunged since July, meaning its shares are currently trading at their cheapest position in months. Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn. | Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. As a result, a market downturn could be the perfect time to invest in this tech company and buy its stock at a bargain. 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. | Apple As the world's most valuable company, with a market cap above $3 trillion, Apple's (NASDAQ: AAPL) stock rarely goes on sale. Apple remains the biggest name in consumer tech and the home of a digital services business that posted revenue growth of 9% this year. Shares in Microsoft gained 55% this year after tumbling amid last year's market downturn. |
||
12059.0 | 2023-12-16 00:00:00 UTC | Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-10 | Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $8.57 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.01%.
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 38.20% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 45.86% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has added roughly 28.33% so far this year and was up about 25.03% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $206.50 and $268.56.
The ETF has a beta of 1.04 and standard deviation of 21.57% for the trailing three-year period, making it a medium risk choice in the space. With about 235 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOOG is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $102.64 billion in assets, Invesco QQQ has $225.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 Growth ETF (VOOG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $8.57 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market. | Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010. | Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.97% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund launched on 09/09/2010. |
||
12060.0 | 2023-12-16 00:00:00 UTC | Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-11 | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007.
The fund is sponsored by Vanguard. It has amassed assets over $4.67 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.32%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 31.80% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 35.49% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has gained about 28% so far this year and was up about 25.89% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $130.37 and $167.93.
The ETF has a beta of 0.99 and standard deviation of 17.76% for the trailing three-year period, making it a medium risk choice in the space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, MGC is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $394.06 billion in assets, SPDR S&P 500 ETF has $449.23 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $4.67 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. | Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007. | Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.95% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Mega Cap ETF (MGC) is a passively managed exchange traded fund launched on 12/17/2007. |
||
12061.0 | 2023-12-16 00:00:00 UTC | Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-11 | Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009.
The fund is sponsored by Blackrock. It has amassed assets over $8.31 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 46.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 59.9% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has gained about 44.70% so far this year and it's up approximately 40.21% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $117.74 and $173.78.
The ETF has a beta of 1.06 and standard deviation of 22.10% for the trailing three-year period, making it a medium risk choice in the space. With about 117 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth ETF 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, IWY is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $102.64 billion in assets, Invesco QQQ has $225.96 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. | Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. | Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. You should consider the iShares Russell Top 200 Growth ETF (IWY), a passively managed exchange traded fund launched on 09/22/2009. |
||
12062.0 | 2023-12-16 00:00:00 UTC | Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-10 | Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR S&P 500 ETF (SPY), a passively managed exchange traded fund launched on 01/29/1993.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $449.23 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.79%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.42% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF has added about 23.96% so far this year and is up about 22.13% in the last one year (as of 12/18/2023). In the past 52-week period, it has traded between $376.66 and $472.01.
The ETF has a beta of 1 and standard deviation of 17.54% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $366.77 billion in assets, iShares Core S&P 500 ETF has $394.06 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $449.23 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market. | Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 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. | Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). 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. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. |
||
12063.0 | 2023-12-16 00:00:00 UTC | Warren Buffett Has Gained Over $196 Billion From Only 4 Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffett-has-gained-over-%24196-billion-from-only-4-stocks | When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett speaks, investors of all walks pay attention. That's because the Oracle of Omaha has been running circles around Wall Street's major indexes for more than a half-century. Since taking the reins at Berkshire, Buffett has doubled the annualized total return, including dividends, of the benchmark S&P 500 (19.8% vs. 9.9%), as of the end of 2022.
Yet what's particularly noteworthy about Buffett's success is that it's the result of prescient investments in a relatively small number of companies. Based on a combination of reported and estimated cost bases, Wall Street's most-revered investor and his team are sitting on $196.2 billion in unrealized gains (not counting dividends received) from just four well-known companies.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Apple: $140.59 billion in unrealized gains (estimated)
Perhaps this comes as no surprise, but the largest holding in Berkshire Hathaway's $364 billion investment portfolio has been one heck of an investment. Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Not bad for a stock that Berkshire has been holding for less than eight years.
Apple's greatness largely derives from its innovation. It's been a leading provider of smartphones since introducing the original iPhone in 2007. In the U.S., it's consistently accounted for half or more of smartphone market share since upgrading the iPhone to handle 5G download speeds in the fourth quarter of 2020.
But what investors seem most excited about is Apple's ongoing evolution. Under CEO Tim Cook, Apple is becoming a platforms company that's emphasizing subscription services.
Make no mistake, Apple has exceptionally loyal customers and plenty of pricing power. It's also not abandoning the physical products that consumers obviously love (iPhone, Mac, and iPad). However, bolstering its portfolio to include subscription services will increase its operating margin over time, further enhance loyalty to Apple's ecosystem of products and services, and is expected to smooth out the revenue lumpiness associated with major iPhone upgrade cycles.
American Express: $24.24 billion in unrealized gains
Although it trails Apple by a wide margin, credit-services provider American Express (NYSE: AXP) has been nothing short of an incredible investment for Warren Buffett and his team, which included the late, great Charlie Munger. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends.
American Express's success as a business is a function of its ability to play both sides of the transaction aisle. In addition to being the No. 3 payment processor by credit card network purchase volume in the U.S., AmEx is a lender to businesses and consumers. This allows it to collect interest income and/or annual fees from its cardholders.
Something else working in favor of American Express is its choice to focus on high-earning consumers. Well-to-do cardholders are far less likely to alter their spending habits or fail to pay their bills than the average American. This positions AmEx to navigate economic downturns better than its peers.
Don't forget that macroeconomic factors are also AmEx's friend. Although financial stocks are cyclical and struggle during periods of contraction, recessions are short-lived. Only three of the 12 recessions since the end of World War II have lasted at least 12 months, and none have surpassed 18 months. Meanwhile, two economic expansions over the past 78 years have endured longer than a decade. Financial stocks like American Express benefit from long-winded periods of expansion.
Image source: Coca-Cola.
Coca-Cola: $22.32 billion in unrealized gains
The third Buffett stock that's generated a veritable smorgasbord of gains for the Oracle of Omaha's company is beverage giant Coca-Cola (NYSE: KO). Coke is Berkshire's longest continuous holding (since 1988) and sports a cost basis of just $3.2475 per share. With a current share price north of $59, it means Buffett and his investing aides are sitting on gains of well over $22 billion.
Also, keep in mind that Coca-Cola has raised its base annual dividend for 61 consecutive years, and is currently doling out $1.84 per share. Relative to Berkshire Hathaway's cost basis, Buffett's company is netting a nearly 57% yield on cost. Put another way, the Oracle of Omaha's company is more than doubling its initial investment in Coca-Cola every two years based solely on the dividend income it's receiving.
Geographic diversity is a big reason Coca-Cola has been such a bubbling investment for the past 35 years. Aside from North Korea, Cuba, and Russia, it has operations in every other country. This allows Coke to generate predictable operating cash flow in developed markets, while also benefiting from stronger organic growth opportunities in emerging market countries. The company has 26 brands generating at least $1 billion in worldwide sales.
Coca-Cola's other source of success is its top-tier marketing. It's been aggressively investing in digital advertising and relying on artificial intelligence to cater ads to younger audiences. Meanwhile, Coke has decades-long ties to the holidays and can lean on well-known brand ambassadors to connect with more mature consumers.
Moody's: $9.07 billion in unrealized gains
The fourth and final stock that, collectively with Apple, American Express, and Coca-Cola, is responsible for generating more than $196 billion in unrealized gains for Warren Buffett and his team is credit-rating agency Moody's (NYSE: MCO).
The theme of this list tends to be patience. Apple's large gains are a function of its outperformance since Berkshire's initial investment in the first quarter of 2016. Meanwhile, AmEx, Coca-Cola, and Moody's have been continuous holdings since 1991, 1988, and 2000, respectively. It's the epitome of allowing time and compounding to work their magic.
According to Warren Buffett's letter to shareholders that was released last year, Berkshire has a per-share cost basis of $10.05 in Moody's. With Moody's stock climbing above $377 on Dec. 11, it means Berkshire stake has increased in value by more than $9 billion, not including dividends paid.
For more than a decade, Moody's credit-rating segment has been its driving force. Historically low interest rates encouraged companies to borrow in order to hire, acquire, innovate, and expand. The need to rate new debt issuances kept Moody's analysts busy, as well as lined the company's pockets.
But things have changed as interest rates have soared over the past 21 months. With fewer corporate debt issuances, Moody's Analytics segment is now doing the heavy lifting. This division, which helps businesses stay compliant with regulations and assists with risk assessment, is perfectly positioned to thrive in the current economic climate.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
American Express is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends. This division, which helps businesses stay compliant with regulations and assists with risk assessment, is perfectly positioned to thrive in the current economic climate. | Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Based on a combination of reported and estimated cost bases, Wall Street's most-revered investor and his team are sitting on $196.2 billion in unrealized gains (not counting dividends received) from just four well-known companies. With Berkshire reporting a cost basis in AmEx of approximately $8.49 per share, Buffett's company is sitting on more than $24 billion in unrealized gains, not including dividends. | Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. American Express: $24.24 billion in unrealized gains Although it trails Apple by a wide margin, credit-services provider American Express (NYSE: AXP) has been nothing short of an incredible investment for Warren Buffett and his team, which included the late, great Charlie Munger. Moody's: $9.07 billion in unrealized gains The fourth and final stock that, collectively with Apple, American Express, and Coca-Cola, is responsible for generating more than $196 billion in unrealized gains for Warren Buffett and his team is credit-rating agency Moody's (NYSE: MCO). | Based on the $39.62-per-share cost basis estimated by WhaleWisdom.com, tech stock Apple (NASDAQ: AAPL) is responsible for a greater than $140 billion unrealized gain for Buffett's company. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, 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 Apple wasn't one of them. |
||
12064.0 | 2023-12-16 00:00:00 UTC | Tech hedge funds soar, piggybacking on Nasdaq rally | AAPL | https://www.nasdaq.com/articles/tech-hedge-funds-soar-piggybacking-on-nasdaq-rally | By Carolina Mandl
NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters.
San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. Last year, the fund was down 33.9%.
Whale Rock Capital's long/short rose 28%, compared with a decline of 43% last year, two sources familiar with the matter said. Tiger Global Management's long/short fund was up 27%, a third source said - it lost 56% last year.
Coatue Management was up 20% through November, a source familiar with the return said. Last year, it was down 19%.
The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. That compared with 2022 when the index fell 33%.
This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O.
In a letter to investors seen by Reuters, SoMa Equity told its clients it had holdings in Microsoft, Amazon and Meta. Still, those shares were not among SoMa's five top contributors to performance in the last quarter. The hedge fund profited the most from exposure to Universal Music Group NV UMG.AS, Wix.Com Ltd, Uber Technologies Inc UBER.N, Varonis Systems Inc VRNS.O and Atlassian Corporation TEAM.O, it said.
On the short side, bets against consumer-led shorts related to automotive, travel and luxury spending also helped performance, according to the letter.
On average, TMT long/short hedge funds are up 14.2% this year through November, according to data provider PivotalPath, after tumbling 22.4% in 2022.
The numbers show they are on track for a "semi-magnificent" year as on average they were not able to recover from previous losses or beat the Nasdaq.
Jon Caplis, Chief Executive Officer at PivotalPath, which tracks over $3 trillion in hedge funds, said that TMT hedge funds started this year with a lower exposure to the Nasdaq, as they reduced their risk appetite throughout last year amid mounting losses.
"While the Nasdaq has roared back, gaining 36% through November, being levered down caused TMT managers on average to catch much less of this rally," he said.
(Reporting by Carolina Mandl, in New York; editing by Jonathan Oatis and Josie Kao)
(([email protected]; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. San Francisco-based SoMa Equity Partners' long/short fund, led by chief investment officer Gil Simon, soared 48% this year through November, according to a document, versus a 36% gain in the Nasdaq. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. | This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. | This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. The so-called TMT hedge funds' (technology, media and telecommunications) performance comes as the Nasdaq surged 41.3% so far this year fueled by investors bets on the prospects of artificial intelligence. | This year's trend has mainly benefited the so-called Magnificent Seven mega-cap growth and technology companies: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Carolina Mandl NEW YORK, Dec 15 (Reuters) - A number of U.S. equities hedge funds focused on technology are set to post double-digit returns this year, boosted by a powerful rally in the Nasdaq .IXIC and after being hard hit in 2022, according to performance numbers obtained by Reuters. Last year, the fund was down 33.9%. |
||
12065.0 | 2023-12-15 00:00:00 UTC | Intel's AI PC Chips Are a Big Step Forward | AAPL | https://www.nasdaq.com/articles/intels-ai-pc-chips-are-a-big-step-forward | Intel's (NASDAQ: INTC) Meteor Lake PC CPUs officially launched on Dec. 14, with some laptops built around the new chips already available. One of the big selling points Intel is touting is a built-in AI accelerator. In software that supports it, Meteor Lake chips can offload AI inference tasks to the accelerator, freeing up the CPU and GPU and delivering improved AI performance.
Architecturally, Meteor Lake comes with some big changes. The new chips use the Intel 4 manufacturing process, the first from Intel to make use of extreme ultraviolet lithography. The chips also move to a tile-based design, with different parts manufactured using different technologies.
Not only does Meteor Lake excel at AI tasks, but the new chips deliver significant improvements in power efficiency and graphics. Meteor Lake moves to an Intel Arc GPU, which is twice as performant and twice as efficient as the graphics in Intel's last-generation chips.
An important step for Intel
The PC market remains depressed after a pandemic-era buying spree gave way to a collapse in demand. Intel's Meteor Lake might be the most exciting thing to happen to the laptop market since Apple started making MacBooks using its custom CPUs. The new chips might be enough to trigger an upgrade cycle in 2024 and beyond.
Meteor Lake's AI hardware delivers big gains in AI inference workloads. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. When Meteor Lake's AI hardware tackles the AI tasks involved when making a Zoom call, Intel claims a 38% reduction in power usage.
How much consumers and businesses care about Meteor Lake's AI hardware depends on the software that supports it. Intel is aiming to boost the number of AI software partners from 39 today to 100 over the course of 2024. On top of the dedicated AI accelerator, the built-in GPU is capable of handling AI workloads as well. Intel claims in creative applications like those from Adobe, Meteor Lake can deliver anywhere from 1.2 times to 5.4 times the performance of a comparable AMD Ryzen CPU.
Beyond performance improvements, Meteor Lake delivers meaningful power efficiency improvements which should help with battery life. One example Intel gave was playing video from Netflix. By leveraging low-power cores built into Meteor Lake's SoC tile, the new chips can play back video using 25% less power compared to Intel's last-gen chips.
Compared to a Ryzen CPU, Intel is claiming that Meteor Lake is more efficient in a wide variety of scenarios. With both processors working within the same 28W power envelope, Meteor Lake is 7% more efficient in web browsing, 44% more efficient at playing back local 4K video, and a whopping 79% more efficient when the system is idle. These numbers come straight from Intel, so take them with a grain of salt. Third-party reviews of individual systems will give us a better idea of how these chips stack up.
A big bet on AI
Intel views AI as the future of the PC. Meteor Lake is the first step in that direction, and its successors will build on its improvements.
The success of Intel's AI PC initiative will hinge on software support. Given Intel's leading share in the PC CPU market, it makes sense for software companies to jump on board. Notably, Intel demonstrated LLaMa2-7B, a smaller large language model capable of text generation, successfully running on a Meteor Lake system using the CPU, GPU, and AI hardware. This opens the door for AI assistants running locally, which should make for a snappier experience compared to calling out to a cloud service on each prompt. That could end up being the "killer app" for Intel's AI PCs.
Meteor Lake is the beginning of Intel's push to bring AI to the PC. Next up is Arrow Lake, scheduled for some time in 2024. Arrow Lake will move to the Intel 20A manufacturing process, which should bring significant performance and efficiency gains. By then, the software ecosystem around Intel's AI hardware should be more mature, and the value proposition should be clearer.
Should you invest $1,000 in Intel right now?
Before you buy stock in Intel, 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 Intel 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
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Adobe, Advanced Micro Devices, Apple, Netflix, and Zoom Video Communications. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe. 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. | Intel's Meteor Lake might be the most exciting thing to happen to the laptop market since Apple started making MacBooks using its custom CPUs. Notably, Intel demonstrated LLaMa2-7B, a smaller large language model capable of text generation, successfully running on a Meteor Lake system using the CPU, GPU, and AI hardware. This opens the door for AI assistants running locally, which should make for a snappier experience compared to calling out to a cloud service on each prompt. | Meteor Lake's AI hardware delivers big gains in AI inference workloads. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe. | Meteor Lake moves to an Intel Arc GPU, which is twice as performant and twice as efficient as the graphics in Intel's last-generation chips. Compared to its last-generation chips, Intel claims that Meteor Lake delivers 1.7 times the performance in generative AI and is 2.5 times as power efficient in the UL Procyon AI inference benchmark. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2024 $420 calls on Adobe, long January 2025 $45 calls on Intel, short February 2024 $47 calls on Intel, and short January 2024 $430 calls on Adobe. | In software that supports it, Meteor Lake chips can offload AI inference tasks to the accelerator, freeing up the CPU and GPU and delivering improved AI performance. Meteor Lake's AI hardware delivers big gains in AI inference workloads. The success of Intel's AI PC initiative will hinge on software support. |
||
12066.0 | 2023-12-15 00:00:00 UTC | Will Nvidia Be Worth More Than Apple by 2030? | AAPL | https://www.nasdaq.com/articles/will-nvidia-be-worth-more-than-apple-by-2030-0 | Nvidia (NASDAQ: NVDA) entered the $1 trillion market cap club this year thanks to a red-hot run in the stock market fueled by super high demand for its graphics processing units (GPUs) for training artificial intelligence (AI) models. Share prices of Nvidia have surged 226% in 2023. It now has a market cap of $1.2 trillion, which makes it the sixth-largest company in the world.
Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. Let's see why.
Apple hasn't been able to match Nvidia's growth
Over the past seven years, Nvidia's market cap has jumped an astonishing 2,300%, which is significantly higher than Apple's growth of just over 400% during the same period.
NVDA market cap data by YCharts.
It is easy to see why this has been the case. The market has rewarded Nvidia for the tremendous growth in its revenue and earnings over the years, driven by the growing applications of the company's GPUs in multiple industries ranging from computers to data centers to cars and even factories.
Apple's growth, on the other hand, has been slower than Nvidia's. Again, that's not surprising as Apple operates in markets that have reached their saturation points.
NVDA revenue (TTM) data by YCharts; TTM = trailing 12 months.
For instance, sales of smartphones were flat in the third quarter of 2023, according to market intelligence firm IDC. Meanwhile, personal computer (PC) shipments are set to drop almost 14% this year. The state of these markets explains why Apple's revenue in fiscal 2023 (which ended on Sept. 30, 2023) fell almost 3% year over year to $383 billion. Its adjusted earnings were almost flat year over year at $6.13 per share.
Apple got two-thirds of its revenue from selling smartphones and personal computing devices such as iPads and MacBooks in the previous fiscal year. Also, there is a lot of competition in these markets thanks to the presence of multiple participants.
For example, Apple is the second-largest smartphone manufacturer, but it has a market share of just under 18%. The company's share of the PC market stands at 10.6%, making it the fourth-largest player in this space.
Sales of both PCs and smartphones aren't expected to increase significantly in the long run. IDC expects the PC market to clock a compound annual growth rate (CAGR) of just 3.1% through 2027. Smartphone shipments are expected to have an even slower CAGR of 1.7% over the next four years. Not surprisingly, analysts aren't expecting much of an acceleration in Apple's growth, which is evident from the following chart.
AAPL revenue estimates for current fiscal year; data by YCharts.
And the company's earnings are expected to increase at an annual pace of just 6% over the next five years. That's way slower than the 21% annual earnings growth Apple clocked in the past five years.
Assuming it can sustain 6% earnings growth for the next seven years, its bottom line could increase to $9.20 per share in 2030 (using its fiscal 2023 earnings of $6.13 per share as the base).
If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade. That would be an increase of just 15%, indicating that its market cap could hit $3.45 trillion in 2030.
Nvidia, on the other hand, is expected to clock annual earnings growth of a whopping 112% for the next five years. Let's see why that's the case, and check if that would be enough to help the company overtake Apple's market cap by 2030.
Nvidia is sitting on a massive growth opportunity
While Apple is struggling with saturated and crowded markets, Nvidia is the dominant force in the rapidly growing market for AI chips. It is estimated that the global AI chip market could hit $304 billion in annual revenue in 2030 as compared to $20 billion in 2021. Nvidia controls between 80% and 95% of this market, as per various third-party estimates.
This, however, is not the only massive growth opportunity Nvidia could benefit from over the next seven years. Including cloud gaming, automotive uses, and digital twins, there are multiple lucrative markets that the company could take advantage of. It estimates its total addressable market to be worth $1 trillion spread across multiple end markets.
The company is expected to finish its ongoing fiscal year with almost $59 billion in revenue, which would be a jump of 118% over the prior year. So, there is still a lot of room for growth for Nvidia, which explains why analysts consistently raise their estimates.
NVDA revenue estimates for current fiscal year; data by YCharts.
Assuming Nvidia manages to hit $107 billion in revenue in fiscal 2026, its three-year revenue CAGR would stand at an impressive 58% based on its fiscal 2023 revenue of $27 billion. If the company manages to sustain a relatively conservative long-term revenue growth rate of 25% from fiscal 2027 to fiscal 2031 (which will coincide with calendar 2030), its top line could hit $325 billion by the end of the decade.
Nvidia has an average five-year price-to-sales ratio of 20. Assuming it trades at a discount 15 times forward sales in 2030, its market cap could jump to almost $4.9 trillion in 2030. As such, there is a chance of Nvidia overtaking Apple's market cap in the long run, and this won't be surprising given how fast the former is anticipated to benefit from multiple growth drivers.
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
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. AAPL revenue estimates for current fiscal year; data by YCharts. The market has rewarded Nvidia for the tremendous growth in its revenue and earnings over the years, driven by the growing applications of the company's GPUs in multiple industries ranging from computers to data centers to cars and even factories. | AAPL revenue estimates for current fiscal year; data by YCharts. Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade. | Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. AAPL revenue estimates for current fiscal year; data by YCharts. Nvidia (NASDAQ: NVDA) entered the $1 trillion market cap club this year thanks to a red-hot run in the stock market fueled by super high demand for its graphics processing units (GPUs) for training artificial intelligence (AI) models. | AAPL revenue estimates for current fiscal year; data by YCharts. Apple (NASDAQ: AAPL) remains the world's most valuable company with a market cap of nearly $3.1 trillion, but there is a good chance that Nvidia could dethrone the iPhone maker by the end of the decade. If we multiply the projected 2030 earnings with Apple's five-year average forward earnings multiple of 24, the stock price could jump to $221 by the end of the decade. |
||
12067.0 | 2023-12-15 00:00:00 UTC | 57.7% of Warren Buffett's $375 Billion Portfolio Is Invested in These 2 Dividend-Paying Stocks | AAPL | https://www.nasdaq.com/articles/57.7-of-warren-buffetts-%24375-billion-portfolio-is-invested-in-these-2-dividend-paying | According to Warren Buffett, "All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." Luckily for us everyday investors, you don't need Berkshire Hathaway's resources to separate good companies from businesses that are best avoided. Just look for dividend payers that keep raising their payouts.
Berkshire Hathaway doesn't pay a dividend itself, but the vast majority of stocks that it owns do. Buffett's such a big fan of dividend payers that a majority of Berkshire's holdings are concentrated in a handful of dividend-paying stocks. You might be surprised to learn that, at recent prices, just two stocks make up 57.7% of Berkshire's stock portfolio.
Buffett's is betting big on Apple
Buffett's been at the helm of Berkshire since 1965, but one of its biggest investments of all time didn't enter the equity portfolio until 2016. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding.
Apple's stock price has risen a stunning 627% since the end of the first quarterly period that Berkshire disclosed its stake in the company. Plus, its quarterly dividend payout has risen about 68% over the same timeframe.
AAPL Dividend data by YCharts
Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. The stock offers an uninspiring 0.5% yield at recent prices, but Buffett's accumulated around 915 million shares of the stock so quarterly payouts are significant.
Berkshire's Apple holdings will deliver $220 million worth of dividend payments in February and probably more in the subsequent quarter. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment.
New investors who want to follow Buffett's lead can look forward to increasing profits and a rising dividend payout from Apple for at least another decade. Sales of iPhones aren't growing very fast, but Apple boasts more than 2 billion active devices. Selling high-margin services to those users drove earnings per share 13% higher in its fiscal fourth quarter that ended Sept. 30.
Bank of America is dull but reliable
Buffet is sitting on more than 1 billion shares of Bank of America (NYSE: BAC), or BofA. At 9.3% percent of the equity portfolio, it's Berkshire's second-largest holding.
For decades, Buffett has told anyone who will listen that he believes in the U.S. economy's ability to grow over time. He loves to buy bank stocks after they've been beaten down because he knows these cyclical businesses benefit from periods of economic growth that tend to last much longer than the recessions that separate them.
Interest BofA receives from loans rose much faster in 2023 than the interest it pays to its huge deposit base. An improved net interest margin helped third-quarter earnings per share rise 11% year over year.
BAC Dividend data by YCharts
At recent prices, BofA shares offer a 2.8% dividend yield and a chance for a much higher yield on your original investment in the years ahead. The bank held its dividend in place in 2020, but it's still up by 60% over the past five years.
Despite all the rapid payout bumps in recent years, BofA met its dividend obligation over the past 12 months with just 20.7% of the free cash flow its lucrative banking operation generated. That means there's plenty of room to raise its dividend a lot further in the years ahead. Buying the stock now to hold for the long run looks like a smart move.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Bank of America. 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. | That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment. | AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. The highly profitable company generated nearly $100 billion in free cash flow over the past 12 months and needed just 15% of this sum to meet its dividend commitment. | AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. The stock offers an uninspiring 0.5% yield at recent prices, but Buffett's accumulated around 915 million shares of the stock so quarterly payouts are significant. | That was the year Berkshire began building an enormous stake in Apple (NASDAQ: AAPL), which has quickly become the conglomerate's largest holding. AAPL Dividend data by YCharts Huge gains plus subsequent purchases have increased Berkshire's Apple stake to a staggering $181 billion at recent prices, or about 48% of Berkshire's equity portfolio. BAC Dividend data by YCharts At recent prices, BofA shares offer a 2.8% dividend yield and a chance for a much higher yield on your original investment in the years ahead. |
||
12068.0 | 2023-12-15 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-28 | 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. |
||
12069.0 | 2023-12-15 00:00:00 UTC | These 3 Stocks Have Made Warren Buffett the Most Money in 2023. Are They No-Brainer Buys for the New Year? | AAPL | https://www.nasdaq.com/articles/these-3-stocks-have-made-warren-buffett-the-most-money-in-2023.-are-they-no-brainer-buys | Nearly $121 billion. That's how much Warren Buffett is worth at the time of this writing. The total is substantially more than it was 12 months ago thanks to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) solid gains this year.
But Berkshire Hathaway's gains stemmed in large part from great performances from several of its equity holdings. These three stocks have made Buffett the most money in 2023.
1. Apple
Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. However, there's no doubt whatsoever that Apple ranks as Buffett's biggest moneymaker in 2023.
Nearly half of Berkshire's equity investments are in Apple stock (48.5%, to be precise). Shares of the tech giant have skyrocketed more than 50% this year. Apple is on track to generate an unrealized gain of more than $65 billion for Berkshire in 2023. As Berkshire's biggest shareholder, Buffet's net worth benefited tremendously as a result.
Improving investor sentiment no doubt played a key role in Apple's impressive year-to-date gains. The company also beat Wall Street earnings estimates in each of its quarterly updates in 2023.
2. American Express
Buffett has owned shares of American Express (NYSE: AXP) longer than nearly any other stock in Berkshire's portfolio. The financial services company remains one of Buffett's favorites. Berkshire's 20.8% stake in Amex makes it the conglomerate's third-largest holding.
Just a few months ago, American Express wouldn't have made our list. However, the stock has roared back since late October and is now up more than 20% year to date. That's enough to generate roughly $4.7 billion in gains for Berkshire this year.
What provided the much-needed recent catalyst for American Express stock? The company reported better-than-expected Q3 revenue and earnings on Oct. 20, 2023. Amex posted record results on both its top and bottom lines.
3. Moody's
Several of Berkshire's other top holdings have declined this year. However, the conglomerate's eighth-largest position, credit rating agency Moody's (NYSE: MCO), is a notable exception.
After a multi-month pullback, Moody's stock began a strong comeback in October. The company's shares have soared more than 40% year to date. This tremendous gain has made Berkshire in the ballpark of $3 billion in 2023.
Business is booming for Moody's. The company reported 15% year-over-year revenue growth in the third quarter with diluted earnings per share jumping 28%. CEO Rob Fauber said that this impressive growth demonstrated "the resiliency and relevance of our business and the increasing demand for our unparalleled research, data, and solutions."
Are they no-brainer buys for the new year?
Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? Not necessarily. The big winners of one year don't always carry their momentum into the next year.
Apple's valuation could be a limiting factor headed into 2024. The stock currently trades at 30 times expected earnings. Moody's is even more expensive with a forward price-to-earnings ratio of nearly 35. American Express, on the other hand, remains attractively valued with a forward earnings multiple of 14.
But with the economy appearing to be in healthy shape, all three of these stocks could perform well again next year. More importantly, they should all deliver solid long-term returns thanks to their strong underlying businesses.
I wouldn't go as far as saying that Apple, American Express, and Moody's are no-brainer buys for the new year. However, I do think they're no-brainer picks for long-term investors.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Moody's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. Improving investor sentiment no doubt played a key role in Apple's impressive year-to-date gains. CEO Rob Fauber said that this impressive growth demonstrated "the resiliency and relevance of our business and the increasing demand for our unparalleled research, data, and solutions." | Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. The total is substantially more than it was 12 months ago thanks to Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) solid gains this year. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? | Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? Before you buy stock in Apple, 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 Apple wasn't one of them. | Apple Other stocks in Berkshire's portfolio have delivered greater returns than Apple (NASDAQ: AAPL) has this year. But Berkshire Hathaway's gains stemmed in large part from great performances from several of its equity holdings. Are Apple, American Express, and Moody's no-brainer stocks to buy for the new year after making Buffett a ton of money in 2023? |
||
12070.0 | 2023-12-14 00:00:00 UTC | 3 No-Brainer Dividend Stocks to Buy and Hold for 20 Years | AAPL | https://www.nasdaq.com/articles/3-no-brainer-dividend-stocks-to-buy-and-hold-for-20-years | Successful investing is not as complicated as some make it out to be. Sticking with the brands you use every day, and holding for many years, is a great place to start.
Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. The best part is that these companies are so consistent in generating profitable growth from their businesses that they dish out a steady stream of growing dividends to shareholders.
Let's find out more why three Motley Fool contributors believe these stocks are no-brainer buys for the next 20 years.
Apple has massive cash resources to fund a growing dividend
John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth.
A smart way to build up dividend income you'll need for retirement is focusing on companies that offer dividend growth. A company that has a long record of raising its dividend payment usually reflects growing demand for the company's products. Moreover, a multiyear record of dividend increases reflects management's confidence in the future of the company.
Apple is a great example. Over the past 10 years, its annual dividend grew by 130%, or more than double its fiscal 2013 dividend payment. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession.
While the dividend yield on Apple stock is below average at just 0.49% right now, its yield could increase over the next two decades. If Apple doubles its dividend in each decade through 2043, investors who buys shares today could potentially earn a dividend yield on their cost basis approaching 2%. If Apple also doubles its payout closer to 30% of its earnings, the yield could approach 4%.
Apple has attractive long-term growth prospects. It should continue to grow through expanding its installed base of active devices, launching new products (e.g., Vision Pro in 2024), and continuing to expand its services business, which should be a great source of profitable growth to help fund future dividend increases.
The iPhone, which makes up half of the company's annual revenue, has made Apple one of the most profitable companies in the world. Apple generated $99 billion in free cash flow on $383 billion of revenue over the past year. The resources it has will pave the way for more new products, more profitable growth, and growing dividends for years to come.
A buy-on-the-dip dividend opportunity
Jennifer Saibil (Starbucks): Starbucks doesn't have any competition as the leader in coffee shops, and it's opening new stores, innovating with beverages, and making other important changes to keep its top spot.
The company hired a new CEO this year, and it's pivoting from its prior strategy as a sit-down-and-hang-out kind of place to its new iteration as digital coffee king. People today want to order and pick up, and Starbucks is right there with them. It has invested in new equipment to speed up ordering and fill demand for a quick cup, and it's already demonstrating success with these efforts.
In the 2023 fiscal fourth quarter (ended Oct. 1), revenue increased 11% year over year, with an 8% increase in comparable sales. While there are already more than 38,000 stores (seemingly one on every corner), the international market is still undertapped, accounting for only 21% of sales. Starbucks still sees a massive opportunity for more stores, both at home and abroad, and it's highly focused on the China region, its second largest.
Despite the inflationary environment, the company has increased net income and generated robust free cash flow. Earnings per share (EPS) rose 39% over the prior-year period in the third quarter to $1.06, and it generated $1.2 billion in free cash flow. This powers its innovation and operations, as well as a very attractive dividend.
Starbucks has paid -- and raised -- its dividend for the past 13 years, and over that time it has increased more than 1,000% in value. At the current price, Starbucks' dividend yields 2.3%, or well above the S&P 500 average of 1.6%.
As Starbucks continues to drive sales and generate cash, it should be able to amply fund and raise its dividend for years. Starbucks stock is down 2% in 2023, and now is a great time to buy shares and benefit from a growing passive income stream.
A reliable cash machine
Jeremy Bowman (Costco): Not many stocks are as universally admired as Costco. It has a loyal customer base that regularly flocks to its stores to stock up on bargain-priced bulk goods.
And, Costco has one of the strongest moats in retail, thanks to its membership model and reputation for high-quality products at great prices, and the company routinely ranks among the highest in customer satisfaction in the retail industry.
Not surprisingly, Costco has also been a great stock to own. Since its IPO in 1985, the stock has returned a whopping 71,000% -- and that's not including dividends.
Today, Costco's prospects for outperformance still look bright as the company has fended off threats from e-commerce and Amazon, continues to open stores both in the U.S. and abroad, and is growing through the e-commerce channel as well.
As a dividend stock, Costco might not look like a cash-returning powerhouse. Its dividend yield is currently just 0.65%. But the company has a long history of paying special dividends every few years of as much as $10 a share, and its next special dividend, which has been anticipated, could be even higher than that.
No matter what happens in the broader economy, in the retail sector, or on the technology front, Costco looks like a good bet to continue delivering solid, steady growth, returning cash to shareholders and making money for them. It's one of the easiest investments you can own for the next 20 years.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Starbucks. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Starbucks. 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. | Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. The best part is that these companies are so consistent in generating profitable growth from their businesses that they dish out a steady stream of growing dividends to shareholders. The company hired a new CEO this year, and it's pivoting from its prior strategy as a sit-down-and-hang-out kind of place to its new iteration as digital coffee king. | Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. Apple has massive cash resources to fund a growing dividend John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth. If Apple doubles its dividend in each decade through 2043, investors who buys shares today could potentially earn a dividend yield on their cost basis approaching 2%. | Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. Apple has massive cash resources to fund a growing dividend John Ballard (Apple): Investors shouldn't focus only on buying stocks with high yields, since companies that pay high yields are either struggling financially or lacking growth. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession. | Top stocks, such as Apple (NASDAQ: AAPL), Starbucks (NASDAQ: SBUX), and Costco Wholesale (NASDAQ: COST), have a long record of beating the market's average return. A company that has a long record of raising its dividend payment usually reflects growing demand for the company's products. It has increased the dividend for 12 consecutive years, and because it only pays out 14% of its earnings, Apple can continue increasing the dividend even if earnings are down during an investment year or recession. |
||
12071.0 | 2023-12-14 00:00:00 UTC | Almost Half of Warren Buffett-led Berkshire Hathaway's $365 Billion Portfolio Is Invested in Only 1 Stock | AAPL | https://www.nasdaq.com/articles/almost-half-of-warren-buffett-led-berkshire-hathaways-%24365-billion-portfolio-is-invested | Warren Buffett is arguably the greatest capital allocator ever. His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years.
Scouring Berkshire's equities portfolio for potential investments might be a smart idea for the average investor. By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL).
It's worth looking at some of the reasons Buffett decided to buy this FAANG stock in the first place. Then, by considering the situation today, investors can decide if Apple still makes for a smart investment.
Almost a no-brainer investment
Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Since Jan. 1 of that year to Dec. 12 of this year, the iPhone maker's stock price has skyrocketed 639%. That easily outpaces the 190% rise of the Nasdaq Composite.
Looking back almost eight years, it's not hard to understand why Buffett was attracted to Apple as an investment opportunity. I think there were three key reasons.
For starters, Buffett realized that Apple wasn't just a typical tech business. Instead, it was one of the strongest consumer brands on the planet. And this supported Apple's economic moat, while giving the company proven pricing power.
Next, Apple is an extremely sound enterprise financially. In fiscal 2015 (ended Sept. 26 of that year), the business posted a gross margin of 40.1%, an operating margin of 30%, and free cash flow of $70 billion. And at the end of that fiscal year, it had $206 billion in cash, cash equivalents, and marketable securities on the balance sheet.
Lastly, while Buffett does appreciate wonderful businesses, he will not overpay for them. Apple shares traded at an average price-to-earnings (P/E) multiple of 10.6. In hindsight, that is a ridiculously cheap valuation, especially for such a dominant company.
In 2016, Apple hit on all of the characteristics that Buffett usually looks for in a stock. It was almost a no-brainer investment decision for the Oracle of Omaha at the time.
Is Apple a smart stock to buy right now?
Clearly, Apple worked out as a fantastic investment. And based on the dollar value of gains, it might be the most financially lucrative bet that Buffett has ever made. Even this year, the stock has soared 50%, so there is strong momentum.
Investors who have been on the sidelines might be looking at Apple as a potential buying opportunity right now. After all, it's still Berkshire's largest position by far. However, I don't believe this is a smart stock to buy.
Apple's current valuation isn't remotely as cheap as it was in early 2016. As of this writing, shares trade at a P/E of 31.8, triple the range that Buffett first purchased them at. All else equal, this introduces a major headwind for investors looking to produce solid returns, as the optimism is fully priced in.
And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size. In each of the last four fiscal quarters, sales declined on a year-over-year basis, a sign that this is a mature business nowadays. Paying such a steep valuation seems like a mistake.
The way things stand, Apple stock just doesn't make for a smart investment.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). His track record at the helm of Berkshire Hathaway proves this: The conglomerate's shares have increased by 40,000% in the last 40 years. And a valid argument can be made that Apple simply doesn't have the growth opportunities today that it did in years past, thanks to its already massive size. | By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Before you buy stock in Apple, 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 Apple wasn't one of them. | By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). The way things stand, Apple stock just doesn't make for a smart investment. Before you buy stock in Apple, 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 Apple wasn't one of them. | By doing so, you'll quickly realize that about 49% of the massive $365 billion portfolio is invested in just one stock: Apple (NASDAQ: AAPL). Almost a no-brainer investment Berkshire Hathaway first purchased shares of Apple during the first quarter of 2016. Before you buy stock in Apple, 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 Apple wasn't one of them. |
||
12072.0 | 2023-12-14 00:00:00 UTC | 2 Hot Warren Buffett Stocks That Raised Their Dividends This Year | AAPL | https://www.nasdaq.com/articles/2-hot-warren-buffett-stocks-that-raised-their-dividends-this-year | The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. So you can imagine the rivers of dividend payments the portfolio takes in on an annual basis.
This year has been quite a gusher in that respect for Berkshire, as two of the portfolio's largest holdings declared dividend raises. Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC).
1. Apple
Of the two companies, Apple was the first to crank its distribution higher. It declared a 4% dividend raise in May, which pushed the quarterly payout to $0.24 per share. This doesn't exactly make it a high yielder at 0.5% based on the latest stock price.
Regardless, Apple is a cornerstone investment in Berkshire's stock portfolio, to the point where the tech giant comprises a whopping 49% of it. All told, the Berkshire Apple position is worth more than $178 billion at the current share price.
With that kind of commitment, you can bet that Buffett and company are among Apple's most significant and committed bulls. That belief in the company is paying off with the increased dividends -- the May raise marked the 11th year in a row it has upped the payout.
That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters).
Yet the foundational iPhone, now in its 15th (!) iteration, continues to be a hot seller, and services revenue keeps climbing to new highs. Meanwhile, as ever, management is doing a good job of keeping up those comparatively quite lofty net margins (26% in the most recently reported quarter).
We should never thoughtlessly copy the moves of a popular investor or portfolio manager. But Apple is a strong company that generates geysers of cash, and is happy to return a bit of it to its investors.
2. Bank of America
Any guesses as to which storied lender has the second-highest weighting in Berkshire's hallowed equity portfolio? Correct! It's Bank of America (NYSE: BAC), which comprises just under 9% of the total. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. These days, that yields 3%.
The health of a bank is due to prudent management, of course, but it also depends rather heavily on the health of its economy.
Yes, Americans remain worried about inflation eating into their paychecks, but for the most part growth continues to be in the cards. When an economy is thriving, business and individual confidence tend to rise, and those entities are inclined to borrow more money. That, of course, is the core activity of traditional banks.
As a highly visible lender in the U.S., Bank of America has been reaping the benefits of being a major operator in the economy.
In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. Not coincidentally, total revenue also advanced by that figure. Combined with increased efficiency engineered by a good management team, net income rose at a sturdy 10% clip.
Meanwhile, within the bank's results were some very encouraging developments. For example, it managed to increase its count of relationships in the lucrative global wealth and investment management segment by 20%. And its global markets division produced 8% growth in securities sales and trading revenue.
As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters). In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. Before you buy stock in Apple, 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 Apple wasn’t one of them. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it. |
||
12073.0 | 2023-12-14 00:00:00 UTC | PayPal Is a Smart Stock to Buy on the Dip, but There's 1 Warning | AAPL | https://www.nasdaq.com/articles/paypal-is-a-smart-stock-to-buy-on-the-dip-but-theres-1-warning | PayPal (NASDAQ: PYPL) was once one of the best-performing stocks out there. From its spinoff from eBay in July 2015 to its peak price in July 2021, shares rose about 740%, a monster gain.
But it's been all downhill since then. As of this writing, the shares are 80% off that all-time high.
Despite this poor performance, this payments and fintech giant is still a smart stock to buy, especially on the dip. But investors should heed one warning sign.
A quality business with great attributes
I think there are many reasons to like PayPal. By operating a two-sided platform, with 35 million merchants and 393 million individual accounts, this business benefits from network effects. The greater the adoption PayPal gets from both user groups, the more valuable the platform becomes because there's higher utility. This is what makes up the company's economic moat.
The stock's performance doesn't show it, but this is an extremely profitable enterprise. PayPal consistently generates positive free cash flow (what's left from cash flow after business investments and capital expenditures), with $4.6 billion estimated for 2023. Plus, management is focused on aggressively buying back shares.
I also want to point out that PayPal is still posting healthy growth, even in the face of macro headwinds. Revenue and total payment volume grew 8% and 15%, respectively, in the most recent quarter.
For all these positive qualities, investors are only being asked to pay a price-to-earnings ratio of 18.5. That's a discount to the overall S&P 500.
Competition adds uncertainty to the mix
Based on the points outlined here, PayPal isn't like most fintech companies out there. This is a great business that has a track record of success. And it looks like a smart investment to make right now.
However, astute investors are always concerned about any risk factors. In PayPal's case, we can't ignore how incredibly competitive the payments landscape has become.
This shouldn't be surprising. PayPal has long been at the forefront of the rise of digital payments. And this has been the case both for consumers and merchants. This success, though, attracted an army of competitors.
On the merchant side, PayPal competes in a variety of areas, like fees, fraud minimization, authorization rates, and the customer experience. From a merchant's perspective, there are a lot of service providers to choose from that go up against PayPal's Braintree. Privately held Stripe, Shopify, and Adyen are formidable opponents, all posing challenges to PayPal.
Consumers probably care most about ease of use and ubiquitous acceptance. On that latter point, PayPal outshines rivals. In 2022, it was the most widely accepted digital wallet among the 1,500 biggest retailers in North America and Europe, with nearly 80% penetration.
From personal experience, though, I have rarely used PayPal as a checkout option. And most of the people I know don't, either. I use Venmo all the time (also a PayPal holding), but the business doesn't generate any revenue from me sending and receiving money to friends.
On the other hand, I find myself using a key competitor service, Apple Pay, almost every day, it seems like. The fact that Apple owns the mobile operating platform and can put its payment methodology above others is a key advantage.
Shopify's Shop Pay, Alphabet's Google Pay, and Block's Cash App are other popular consumer-facing digital wallets that compete with PayPal's offering.
From an investment perspective, when aiming to own a stock for the next five to 10 years, the competitive landscape must factor into the decision-making process. That's because changes that happen in the industry can either positively or negatively impact a particular business and its trajectory.
Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. If you still like the stock, initiating a tiny position could be the right move.
Should you invest $1,000 in PayPal right now?
Before you buy stock in PayPal, 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 PayPal 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. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay. 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. | Competition adds uncertainty to the mix Based on the points outlined here, PayPal isn't like most fintech companies out there. On the merchant side, PayPal competes in a variety of areas, like fees, fraud minimization, authorization rates, and the customer experience. I use Venmo all the time (also a PayPal holding), but the business doesn't generate any revenue from me sending and receiving money to friends. | Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay. | Investors can't ignore the heightened competition, which adds an element of heightened risk to the PayPal investing thesis. Before you buy stock in PayPal, 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 PayPal wasn't one of them. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, PayPal, and Shopify. | In PayPal's case, we can't ignore how incredibly competitive the payments landscape has become. On the other hand, I find myself using a key competitor service, Apple Pay, almost every day, it seems like. Before you buy stock in PayPal, 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 PayPal wasn't one of them. |
||
12074.0 | 2023-12-14 00:00:00 UTC | China's ban on Apple's iPhone accelerates- Bloomberg News | AAPL | https://www.nasdaq.com/articles/chinas-ban-on-apples-iphone-accelerates-bloomberg-news | Adds details from report throughout
Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter.
For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing.
Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said.
Apple did not immediately respond to Reuters' request for a comment.
In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said.
Reuters reported in September that staff in at least three ministries and government bodies were told not to use iPhones at work.
Apple's shares were marginally down at $196.50 in extended trading.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shinjini Ganguli)
(([email protected]; +91 8510015800;))
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 from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. | Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said. | Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. In December, smaller firms and agencies in lower-tier cities from provinces including Zhejiang, Shandong, Liaoning and central Hebei, which houses the world's largest iPhone factory, issued their own verbal directives, the Bloomberg News report said. | Adds details from report throughout Dec 15 (Reuters) - More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple AAPL.O iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter. For over a decade, China has been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing. Multiple state firms and government departments across at least eight provinces have instructed employees in the past month or two to start carrying local brands, the Bloomberg News report said. |
||
12075.0 | 2023-12-14 00:00:00 UTC | Got $1,000? Here Are 2 Stocks to Buy for the Long Haul | AAPL | https://www.nasdaq.com/articles/got-%241000-here-are-2-stocks-to-buy-for-the-long-haul-0 | The new year is right around the corner, with now an excellent time to consider investing in stocks likely to flourish in 2024 and beyond.
As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. One dominates consumer tech, with leading market shares in smartphones, tablets, headphones, and wearables. Meanwhile, the other is killing it in e-commerce alongside a leading position in cloud computing that could see it profit significantly from artificial intelligence (AI).
Over the last five years, shares in Apple and Amazon have risen around 365% and 79%, respectively. While past growth isn't always an indicator of what's to come, these companies have the financial resources and brand recognition to continue expanding well into the future.
The massive potential of these tech giants means you won't need tens of thousands of dollars to see big gains over the long term. So, got $1,000? Here are two stocks to buy for the long haul.
1. Apple
Apple's stock has hit record heights this year, achieving a market cap above $3 trillion for the first time in June. The milestone came even while the company faced repeated declines in its product segments, which suffered from macroeconomic headwinds affecting businesses across tech.
The iPhone maker posted a revenue dip of 3% year over year in fiscal 2023. Yet loyal investors have largely stuck with the company, trusting its ability to overcome current challenges and deliver stellar gains over the long term.
Their faith in Apple is not unfounded. The tech giant remains a favorite among consumers, who continued to show preference for Apple's products. U.S. smartphone shipments fell throughout this year, tumbling 19% year over year in the third quarter of 2023.
As a result, Samsung's market share fell from 27% in Q1 2023 to 22% in Q3. However, Apple has outperformed its biggest competitor by growing its market share from 52% to 55% in the same period. The popularity of Apple products suggests it has much to gain from the market's inevitable recovery.
In the meantime, it is massively profiting from its digital services business, which posted revenue growth of 9% in fiscal 2023. Income from the App Store and subscription services like Apple TV+ and iCloud make up the company's fastest-growing division, delivering profit margins around 70%.
Data by YCharts
Apple's forward price-to-earnings ratio of 30 makes it a slightly expensive buy. However, as the chart shows, the company hit close to $100 billion in free cash flow, more than some of its biggest competitors in tech. The company has earned its high valuation and will likely go far over the long term, as it has the funds to continue investing in its business.
Dedicating a little over half of your $1,000 investment would yield three shares in Apple, costing about $580 at its current position.
2. Amazon
Amazon has come a long way since starting as an online book retailer in Seattle almost 30 years ago. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS). Meanwhile, the potency of its services has resulted in leading positions in countless other sectors, such as attaining the second-largest market share in streaming with Prime Video.
The vast user base of its online retail site has even seen Amazon become the biggest video game retailer in the U.S., responsible for 68% of sales as of September (per Statista).
Amazon's expansion across tech means it has countless opportunities for growth over the long term. According to Fortune Business Insights, the cloud market alone is projected to hit a value of $678 billion this year and expand at a compound annual growth rate of 20% until at least 2030.
Amazon has the largest cloud market share and is heavily investing in expanding its position, adding new AI capabilities to AWS as it cashes in on increased demand for the technology.
Data by YCharts
Amazon currently has the lowest price-to-sales ratio (P/S) of the tech firms in the chart above. The metric is calculated by dividing a company's market cap by its trailing-12-month revenue, with Amazon's P/S a bargain compared to its peers. Regarding revenue, Amazon's stock offers the most value out of these companies, making it an attractive option right now.
The remainder of your $1,000 investment (and maybe an additional $20, depending on price fluctuation) would buy about three shares in Amazon. The company has a solid outlook over the next decade, with its shares the perfect buy for investors in for the long haul.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Yet loyal investors have largely stuck with the company, trusting its ability to overcome current challenges and deliver stellar gains over the long term. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS). | As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Before you buy stock in Apple, 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 Apple wasn't one of them. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. Apple Apple's stock has hit record heights this year, achieving a market cap above $3 trillion for the first time in June. The company now boasts majority market shares in e-commerce in dozens of countries and is home to the world's largest cloud platform, Amazon Web Services (AWS). | As two companies that have won over consumers worldwide, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. The tech giant remains a favorite among consumers, who continued to show preference for Apple's products. Should you invest $1,000 in Apple right now? |
||
12076.0 | 2023-12-14 00:00:00 UTC | After Hours Most Active for Dec 15, 2023 : UBER, LCID, PFE, KO, AAPL, PCG, EBAY, ALK, MSFT, SEE, CSCO, XP | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-15-2023-%3A-uber-lcid-pfe-ko-aapl-pcg-ebay-alk-msft-see-csco | The NASDAQ 100 After Hours Indicator is down -15.94 to 16,607.51. The total After hours volume is currently 693,412,919 shares traded.
The following are the most active stocks for the after hours session:
Uber Technologies, Inc. (UBER) is -0.25 at $61.61, with 63,192,526 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Lucid Group, Inc. (LCID) is +0.01 at $4.78, with 50,992,533 shares traded. As reported in the last short interest update the days to cover for LCID is 10.347728; this calculation is based on the average trading volume of the stock.
Pfizer, Inc. (PFE) is unchanged at $26.63, with 29,902,776 shares traded. PFE's current last sale is 73.97% of the target price of $36.
Coca-Cola Company (The) (KO) is +0.08 at $58.68, with 17,162,260 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Pacific Gas & Electric Co. (PCG) is -0.12 at $17.64, with 15,690,322 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
eBay Inc. (EBAY) is unchanged at $41.75, with 13,980,742 shares traded. EBAY's current last sale is 92.78% of the target price of $45.
Alaska Air Group, Inc. (ALK) is +0.0016 at $38.95, with 13,911,522 shares traded. As reported by Zacks, the current mean recommendation for ALK is in the "buy range".
Microsoft Corporation (MSFT) is -0.83 at $369.90, with 13,513,771 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Sealed Air Corporation (SEE) is +0.0016 at $35.70, with 13,430,373 shares traded. SEE's current last sale is 91.54% of the target price of $39.
Cisco Systems, Inc. (CSCO) is unchanged at $49.87, with 12,634,216 shares traded. CSCO's current last sale is 90.67% of the target price of $55.
XP Inc. (XP) is +0.1 at $24.64, with 12,332,857 shares traded. As reported by Zacks, the current mean recommendation for XP is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for UBER is in the "buy range". | Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 693,412,919 shares traded. | Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 693,412,919 shares traded. | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.23 at $196.34, with 16,645,942 shares traded. As reported by Zacks, the current mean recommendation for UBER is in the "buy range". |
||
12077.0 | 2023-12-14 00:00:00 UTC | Insider Buying: C-Suite EV Executive Just Loaded Up on $2M of this Auto Stock | AAPL | https://www.nasdaq.com/articles/insider-buying%3A-c-suite-ev-executive-just-loaded-up-on-%242m-of-this-auto-stock | When executives, directors, and major shareholders buy company shares, it's often considered a bullish sign. As per Peter Lynch, while company insiders might sell their shares for any number of reasons, they tend to buy stock for only one reason - because they think the share price is going higher.
Publicly available through Form 4 filings, insider buys by C-suite executives are particularly notable - like the one that just popped up on Ford Motor Company (F) after a long two-year drought of insider buying on the automaker. Here's a closer look.
About Ford
Synonymous with American engineering and an icon of the automobile industry, Henry Ford founded Ford Motor Company in Dearborn, Mich., in 1903. It has gone on to become a global auto giant, designing, manufacturing, and selling cars, trucks, SUVs, electric vehicles, and commercial vehicles. They also offer financing, leasing, and service solutions.
Commanding a market cap of $48.3 billion, Ford stock is up less than 3% on a YTD basis. The stock is underperforming the broader S&P 500 Index ($SPX), up over 22%, by a considerable margin.
www.barchart.com
A Rare C-Suite Buy on Ford Stock
John Douglas Field is the Chief EV, Digital and Design Officer at Ford. Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios.
On Dec. 8, Field purchased 182,000 shares of the company at an average price of $11.0472 per share for a total value of just over $2 million. This marks the first insider buy on Ford stock since Feb. 23, 2021, and the first purchase by a member of the C-suite since April 2020.
Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price.
Ford's EV Future After UAW Strikes
The UAW strike against Detroit's “Big Three” had a material impact on Ford's operations, but the automaker has since updated its guidance to reflect expected labor costs through 2028, along with a reduction to its earnings guidance. This offers some key visibility for shareholders and removes a significant overhang.
During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY).
EPS improved 30% from the prior year to $0.39, up 30% from the previous year, but fell short of Wall Street's expectations.
The company closed the quarter with $51 billion of available liquidity. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year.
Ford has scaled back its electric vehicle (EV) ambitions amid a tough macro environment, but remains committed to the market. Recently, Ford announced a partnership with Xcel Energy (XEL) to develop 30,000 commercial EV charging ports in Xcel Energy service territories across the U.S. by 2030.
Is Ford Stock a Good Value?
Ford stock currently offers a forward dividend yield right around 5%, based on the quarterly dividend of $0.15. Management has said they remain committed to returning 40% to 50% of free cash flow to shareholders.
At current levels, the auto stock looks attractively valued. Ford stock is trading at a forward price/earnings ratio of 6.44, forward price/sales of 0.29, and price/book of 1.09, representing a significant discount to sector medians.
Overall, analysts remain optimistic about the stock, which has an average “Moderate Buy” rating and a mean target price of $14.23. This denotes an expected upside potential of about 18.7% from current levels. Out of 14 analysts covering Ford shares, 6 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 4 have a “Hold” rating, and 2 have a “Strong Sell” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. During Q3, revenues were up 11% from the year-ago period to $44 billion, supported by sales growth across its gas, hybrid and electric vehicles. | Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. All three core segments of the company reported year-over-year revenue increases, including Ford Blue (revenues of $25.6 billion, up 8% YoY), Ford Pro (revenues of $13.8 billion, up 15% YoY), and Ford E (revenues of $1.8 billion, up 29% YoY). | Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. www.barchart.com A Rare C-Suite Buy on Ford Stock John Douglas Field is the Chief EV, Digital and Design Officer at Ford. In his current role, Field plays a vital role in developing Ford's electric vehicles, creating digital platforms and software for Ford’s entire product lineup, and leading the company’s vehicle and digital design studios. | Formerly of Apple (AAPL) and Tesla (TSLA), this is Field's second stint with Ford after serving as a development engineer from 1987 to 1993. Though Ford has underperformed on a YTD basis, the stock is already up more than 8% from Field's Dec. 8 entry price. For the nine months ended Sept. 30, it recorded net cash from operating activities of $12.4 billion, substantially up from $5.7 billion in the same period last year. |
||
12078.0 | 2023-12-14 00:00:00 UTC | Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now | AAPL | https://www.nasdaq.com/articles/want-to-be-in-the-ai-millionaires-club-3-top-stocks-you-need-to-own-now | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. Just about any stock linked to AI has risen over the last 12 months, from heavyweights such as Microsoft (NASDAQ:MSFT) to smaller start-ups such as C3.ai (NYSE:AI). While some analysts say AI is played out and fully priced into the market, don’t believe it.
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. Most companies are only now beginning to monetize the technology. And Fortune Business Insights expects theglobal marketfor AI to quadruple to $2 trillion by 2030. Want to be in the AI millionaires club? Here are three top stocks you need to own now.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. Lost in the concern over the guidance was that Adobe’s fiscal fourth quarter earnings beat Wall Street forecasts, with the company reporting earnings per share (EPS) of $4.27 compared to the $4.14 that was anticipated.
Revenue in the latest quarter totaled $5.05 billion versus $5.03 billion that analysts estimated. The company’s revenue grew 12% from a year ago while its net income increased 26% to $1.48 billion, or $3.23 per share. During the quarter, Adobe increased the costs of some of its software subscriptions, notably those that now include AI. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI.
ADBE stock has increased 74% in 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). In early 2024, the company will release its Vision Pro mixed reality headset, Apple’s first entirely new product since the launch of the Apple Watch in 2014. There’s speculation that the Vision Pro headset could be Apple’s push into video games and that the company is eyeing AI-based gaming as a future endeavor. Apple CEO Tim Cook has said that the company is investing in AI and already makes its own microchips for its iPhones and MacBook computers.
While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. Apple’s share price has now risen 59% in 2023, putting the company’s market capitalization at $3.08 trillion, the biggest of any publicly traded company. Over the past year, Apple’s market value has grown by nearly $1 trillion. Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. Plus, new AI products.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Now for more or a slam dunk when it comes to AI. That would be chipmaker Advanced Micro Devices (NASDAQ:AMD). The company’s share price has gained 20% since the start of December when the company introduced a new series of microchips called the “Ryzen 8040,” aimed at boosting AI applications by up to 60%. The new chips will be incorporated into laptops and personal computers (PCs) made by companies such as Dell Technologies (NYSE:DELL) starting in early 2024.
AMD also announced that its new MI300X accelerator microchip is now available for sale. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024. AMD stock is up 120% in 2023 with continued momentum behind it.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
More From InvestorPlace
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The #1 AI Investment Might Be This Company You’ve Never Heard Of
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. |
||
12079.0 | 2023-12-14 00:00:00 UTC | ETF Market Outlook & Investing Strategies for 2024 | AAPL | https://www.nasdaq.com/articles/etf-market-outlook-investing-strategies-for-2024 | (1:00) - Why Did Stocks Surprise To The Upside In 2023?
(4:30) - Will The Federal Reserve Pull Off A Soft Landing In 2024?
(8:20) - Can The Stock Market Rally Continue Into The New Year?
(12:00) - What Are The Major Themes Investors Should Use To Position Their Portfolios?
(17:00) - Is Now A Good Time To Increase Your Exposure To Dividend Stocks?
(20:45) - Creating Strong Fixed Income For Your 2024 Portfolio
(25:40) - Finding Industries Poised To Grow From Macro Economic Trends
(30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA
[email protected]
In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for 2024.
Stocks and bonds have soared lately as investors are becoming increasingly confident that the Fed will cut interest rates earlier and faster than expected. Can the Fed pull off a soft landing, or is the market getting ahead of itself?
US large-cap growth stocks’ gains in 2023 were driven mainly by multiple expansion, and with earnings expected to rebound in 2024, these stocks could continue to do well. Additionally, the momentum driven by AI-related factors might persist, offering growth prospects in 2024.
Investors should favor high-quality companies with strong pricing power, stable earnings, and healthy balance sheets, as market volatility is likely to move higher amid diminishing fiscal and monetary stimulus.
The SPDR NYSE Technology ETF XNTK holds 35 leading technology companies in equal weights and therefore avoids too much concentration in the “Magnificent Seven” stocks that have already surged a lot.
The SPDR MSCI USA StrategicFactor ETF QUS follows a multi-factor strategy that blends quality, value, and minimum volatility. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings.
The SPDR S&P Dividend ETF SDY selects companies that have consistently increased their dividend for at least 20 consecutive years.
With the recession probability and mortgage rates declining, housing and home retail stocks could see momentum next year, driven by a resilient consumer. Further, homebuilders are currently trading at a much wider than usual discount to the S&P 500 Index.
Defense stocks could benefit from strong bipartisan support in Washington and rising geopolitical risks. However, defense spending could extend to advanced technologies with the emerging threat of AI and increased cyber warfare.
Take a look at the SPDR® S&P® Homebuilders ETF XHB and the SPDR S&P Aerospace & Defense ETF XAR.
Tune in to the podcast to learn more about these ETFs.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected].
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P Homebuilders ETF (XHB): ETF Research Reports
SPDR S&P Dividend ETF (SDY): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (20:45) - Creating Strong Fixed Income For Your 2024 Portfolio (25:40) - Finding Industries Poised To Grow From Macro Economic Trends (30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA [email protected] In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. | Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The SPDR NYSE Technology ETF XNTK holds 35 leading technology companies in equal weights and therefore avoids too much concentration in the “Magnificent Seven” stocks that have already surged a lot. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. (20:45) - Creating Strong Fixed Income For Your 2024 Portfolio (25:40) - Finding Industries Poised To Grow From Macro Economic Trends (30:30) - Episode Roundup: QUS, SDY, VIG, XNTK, XHB, ITB, XAR, ITA [email protected] In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, NVIDIA NVDA and Meta Platforms META are among its top holdings. Can the Fed pull off a soft landing, or is the market getting ahead of itself? |
||
12080.0 | 2023-12-13 00:00:00 UTC | Zacks Investment Ideas feature highlights: Tesla, Apple and Rivian | AAPL | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-apple-and-rivian | For Immediate Release
Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN.
Why Tesla's Cheap (2024 Outlook)
An Up and Down Year for Tesla
Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. Over the years, Tesla has shifted from developing niche products for affluent buyers to more affordable EVs for the masses. The firm's three-pronged business model approach of direct sales, servicing, and charging sets it apart from other carmakers. Year-to-date, shares are higher by 128%. However, investor concerns are mounting, including:
· Valuation: The EV king's market capitalization is more than the combined value of all legacy automakers.
· Underperformance: Though Tesla has more than doubled this year, it has underperformed the market and "Magnificent 7" recently.
· Recall: This week, news broke that Tesla must recall more than 2 million vehicles.
Below, I will debunk the most common investor concerns and lay out my bull case for the stock:
Don't Judge a Book By its Cover: Tesla Valuation is Cheap
The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). P/B is calculated by dividing the market price per share by the book value per share.
A low P/B ratio may suggest that a stock is undervalued, while a high ratio may indicate overvaluation. Investors use this ratio to assess a company's relative worth in the market compared to its accounting value. Tesla currently has a book value of 14.03. Compare that to another mainstream stock like Apple, whose book value is 49.54, and Tesla suddenly looks cheap.
Furthermore, it is essential to remember that Wall Street is a discounting device. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers.
Rallying on Negative Recall News
Earlier this week, Tesla was forced to recall over two million vehicles over autopilot safety concerns. As I always like to remind investors, the reaction to negative news supersedes the news itself. In the case of TSLA, the stock shook off the bad news and is green for the week.
Technical "Shakeout" and Price Rotation Higher
Savvy investors understand that price movement is the ultimate arbiter of decisions, because after all, price is the only thing that pays. TSLA shares sliced below the 50-day moving average on the recall news and then ripped higher. Such price action indicates a shakeout, where weak hands get stopped out of their positions, clearing the way for the next move higher. Now, TSLA is triggering a bullish swing trade signal by clearing last week's highs.
Cybertruck Hype Real
Many Tesla bears suggest that the hype around Tesla's Cybertruck is unfounded. However, Google Trends data suggests the opposite is true. As Tesla investor and enthusiast Sawyer Merritt points out, "Tesla has surpassed Ford to become the most searched auto brand in the US. Tesla's gone from not making the rankings at all in 2022 to second place in 2023, with 29 of 155 countries listing Tesla as their #1 car brand in Google Trends."
Competition Not a Threat
Thus far, all of the fully-EV focused automakers like Rivian have yet to achieve a quarterly profit. As Elon Musk points out, it's one thing to create a prototype and a whole other thing to manufacture at scale. Meanwhile, Ford, the only other profitable EV maker in the US, announced that it would cut F-150 Lightning production in half next year. (the Lightning is seen by the market as the biggest threat to the Cybertruck)
China Sales Growing Despite Weak Economy
Despite a floundering Chinese economy, recent registration numbers suggest that Tesla is on pace to break its quarterly record for deliveries in China (156.7k).
Exponential EV Growth is on the Horizon
A recent study suggests that by 2030, two-thirds of all global car sales will be EVs.
Bottom Line
Investors using traditional valuation metrics to value Tesla are likely to be wrong. Tesla's price-to-book ratio reveals an undervalued position compared to other mainstream stocks. Meanwhile, the Cybertruck's rising popularity and Tesla's sustained growth in China further underscore its market strength. As the automotive landscape continues to evolve towards electric vehicles, Tesla's innovative approach and global expansion prospects make it a must-own.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Rivian Automotive, Inc. (RIVN) : 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. | For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past twelve years, Tesla has achieved a stunning compound annual growth rate (CAGR) of 72%, earning its premium above slower-growing legacy automakers. | For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Why Tesla's Cheap (2024 Outlook) An Up and Down Year for Tesla Tesla is the undisputed market leader in battery-powered electric car sales in the United States, enjoying roughly a 70% market share. | For Immediate Release Chicago, IL – December 15, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Apple AAPL and Rivian RIVN. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report To read this article on Zacks.com click here. Below, I will debunk the most common investor concerns and lay out my bull case for the stock: Don't Judge a Book By its Cover: Tesla Valuation is Cheap The price-to-book ratio (P/B ratio) is a financial metric that compares a company's market value (its stock price) to its book value (the net value of its assets minus liabilities). |
||
12081.0 | 2023-12-13 00:00:00 UTC | The Zacks Analyst Blog Highlights Salesforce, Intel, Microsoft, Apple and Boeing | AAPL | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-salesforce-intel-microsoft-apple-and-boeing | For Immediate Release
Chicago, IL – December 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA.
Here are highlights from Thursday’s Analyst Blog:
5 Winning Stocks of 2023 as Dow Jones Sets New Record High
The Dow Jones Industrial Average hit a new record, surpassing 37,000 for the first time after the Fed signaled the possibility of rate cuts next year. The blue-chip index has displayed an astounding rally in the past month, outperforming the other indices. The rally broadened out to other sectors beyond the "Magnificent Seven" stocks.
While most of the stocks in the index have performed remarkably this year, we have highlighted five of them that have been leading the way higher. These include Salesforce Inc., Intel Corp., Microsoft Corp., Apple Inc. and Boeing.
The Fed, as expected, kept interest rates steady at a 22-year high in the FOMC meeting ended Dec 13. In a major shift, the central bank signaled three rate cuts for the next year, with the federal funds rate falling to a range of 4.4-4.9%, down from the current 5.25% to 5.50%. This suggests that the Fed will cut rates by a total of 0.75% next year, indicating that the historic rate-hiking campaign might be ending. It had previously forecast two rate cuts for 2024. Following the meeting, markets are pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from the CME Group.
Being cyclical in nature, the blue-chip index outperforms when economic growth improves. Americans are now feeling more confident about the economy than they did over the past few months. This is especially true as consumer sentiment, as indicated by the preliminary reading on the University of Michigan preliminary index, rebounded sharply in early December and broke the streak of four consecutive months of decline.
Cyclical stocks, bank stocks and small-cap stocks have all shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities.
Best-Performing Stocks
Salesforceis the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has surged 94.1% this year.
Salesforce has an expected earnings growth rate of 16% for the fiscal year (ending January 2025). It has a Zacks Rank #3 (Hold) and a Growth Score of B.
Intel, the world's largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. INTC jumped 68.6% this year.
Intel is expected to see earnings growth of 98.5% for 2024 and has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% share of operating systems. MSFT has risen 56.1% this year.
Microsoft is expected to see earnings growth of 13.5% in the fiscal year ending June 2024. It has a Zacks Rank #3 and a solid Growth Score of A.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products and HomePod. Shares of AAPL are up more than 52% this year.
Apple's earnings are expected to grow 7% for the fiscal year (ending September 2024). The stock has a Zacks Rank #3 and has a Momentum Score of B.
Boeing has been the premier manufacturer of commercial jetliners for decades. The company's premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 157.6% for 2024.
Boeing has risen 31.7% so far this year. The stock has a Zacks Rank #3 and a Growth Score of A.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. | Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of AAPL are up more than 52% this year. | Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. | Stocks recently featured in the blog include: Salesforce Inc. CRM, Intel Corp. INTC, Microsoft Corp. MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. |
||
12082.0 | 2023-12-13 00:00:00 UTC | Apple sued with Visa, Mastercard in card-fee antitrust case | AAPL | https://www.nasdaq.com/articles/apple-sued-with-visa-mastercard-in-card-fee-antitrust-case | By Mike Scarcella
Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions.
In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies.
Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit.
The complaint said Visa and Mastercard had paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year.
Unlike Apple's iPhones, Google's Android-based devices allow third-party mobile wallets, the lawsuit said.
Representatives for Apple, Visa and Mastercard did not immediately respond to requests for comment.
Lawyers representing Mirage Wine & Spirits also did not immediately comment. The lawsuit, brought on behalf of a proposed class of “at least many thousands” of merchants, seeks triple damages under U.S. antitrust law.
Cupertino, California-based Apple faces an array of legal actions over payments in the United States and Europe.
A U.S. judge in September said Apple must face claims from payment card issuers who sued the company for allegedly coercing iPhone consumers to use its Apple Pay mobile wallet. Venmo and Cash App in a lawsuit last month accused Apple of suppressing competition for peer-to-peer payments.
Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions.
Reuters reported this week that Apple has offered to let rivals access its mobile payments systems used for mobile wallets, in a move that could resolve EU charges.
Visa and Mastercard also have faced myriad antitrust claims from merchants over transaction fees.
A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards.
The case is Mirage Wine + Spirit’s Inc v Apple Inc, U.S. District Court, Southern District of Illinois, No. 3:23-cv-03942.
Read more:
Venmo, Cash App users sue Apple over peer-to-peer payment fees
Apple is ordered to face Apple Pay antitrust lawsuit
Visa, MasterCard $5.6 bln settlement with retailers is upheld
(Reporting by Mike Scarcella)
(([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. | In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Last year, EU antitrust regulators accused Apple of taking steps to thwart rivals’ access to the technology at the center of tap-and-go transactions. | In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. A U.S. appeals court in March upheld a $5.6 billion antitrust class-action settlement with more than 12 million retailers who claimed the two credit card companies unlawfully fixed fees for credit and debit cards. | In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit. | In a complaint filed in East St. Louis, Illinois, federal court on Thursday, beverage retailer Mirage Wine & Spirits said Apple AAPL.O struck unlawful agreements with Visa V.N and Mastercard MA.N to refrain from competing with the two credit card companies. By Mike Scarcella Dec 15 (Reuters) - Apple, Visa and Mastercard have been hit with a new proposed class action that accuses them of conspiring to thwart competition for point-of-sale payment card network services, causing merchants to pay artificially higher fees for credit and debit transactions. Visa and Mastercard in exchange paid Apple a portion of transaction fees for purchases made on their networks by consumers using Apple’s Mobile Wallet service, according to the lawsuit. |
||
12083.0 | 2023-12-13 00:00:00 UTC | 2 Great Passive Income Stocks to Buy for 2024 | AAPL | https://www.nasdaq.com/articles/2-great-passive-income-stocks-to-buy-for-2024 | Passive income isn't hard to find in the stock market. Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Income investors can also use those regular payments to supercharge overall returns if they choose to automatically reinvest them. That way, you can accumulate more shares during market downturns and fewer shares when stocks are rallying.
Many dividend stocks have climbed higher in the past year, partly thanks to those appealing qualities. But several still seem like attractive options for income investors. Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today.
1. Apple
Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs. In the past year, the tech giant has sent $15 billion to shareholders through dividend payments in addition to nearly $80 billion of stock buyback spending.
Those figures illustrate how Apple prefers to allocate more of its excess cash toward stock repurchases. But its dividend is still a priority for executives and has been increasing steadily since 2012.
There are plenty of reasons to expect more growth in 2024 and beyond. Apple reported modest sales gains last quarter thanks to robust demand in the core iPhone business. The tech giant's services division is expanding nicely, too, which is a great sign for long-term profitability.
The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend.
2. Coca-Cola
Coca-Cola has been a passive income giant for decades. Its dividend dates to the 1890s, in fact. And that payout has been rising annually for the past 61 years.
But there's more to be excited about in Coke's future as well. The company is growing sales at a double-digit rate today, for one. The sales spike is coming from a healthy mix between higher volumes and increased prices. Consumers still like core brands such as Coke Zero, and they're also enthusiastic about non-traditional beverages like sparkling waters, energy drinks, and teas.
You'll struggle to find a more financially impressive business than this. Coke's operating profit is sitting at an industry-leading 30% of sales, giving management plenty of resources it can direct toward growth initiatives like the company's massive marketing program.
Its flood of cash flow supports a rising dividend that's currently yielding more than 3%. Investors can thank pessimism on Wall Street around Coke's short-term growth prospects for that higher yield. The stock dropped 6% in 2023 even though its earnings trends have strengthened this year.
As a result, you can buy shares of Coke for 2024 at a relative discount of 24 times earnings. Investors were paying nearly 30 times earnings in early 2023. It might take time before Wall Street wises up to that obvious value, but patient income investors can just collect its rock-solid dividend in the meantime.
Editor's note: This article has been corrected. Apple's quarterly dividend payment is $0.24.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Demitri Kalogeropoulos has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Dividend stocks provide truly passive cash flow in the form of quarterly or annual payments that often increase with each passing year. Sure, the roughly $0.24-per-share quarterly payment translates into just a 0.5% yield based on today's stock price, but Apple maintains one of the market's biggest capital return programs. | Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. | Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. Apple Don't let Apple's relatively modest dividend yield scare you away from this excellent stock. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. | Let's look at a few reasons to like Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO) today. The best part is that investors can hold this tech stock and watch those profit margins rise while they collect cash returns both from stock buybacks and its rising dividend. Apple's quarterly dividend payment is $0.24. |
||
12084.0 | 2023-12-13 00:00:00 UTC | Validea Detailed Fundamental Analysis - AAPL | AAPL | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-12 | 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. |
||
12085.0 | 2023-12-13 00:00:00 UTC | 5 Tech ETFs that Crushed the Magnificent Seven ETFs in 2023 | AAPL | https://www.nasdaq.com/articles/5-tech-etfs-that-crushed-the-magnificent-seven-etfs-in-2023 | In the current investment landscape, the focus has shifted from the FANG stocks, and a new set of influential stocks, known as the Magnificent Seven Stocks, has emerged. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. These companies are considered the new leaders in the stock market.
There is a pureplay ETF called Roundhill Magnificent Seven ETF MAGS on this theme. The ETF has surged more than 32% this year. There is another ETF called Invesco S&P 500 Top 50 ETF XLG, which invests about 50% of the basket in Magnificent Seven. That fund is up about 34% this year.
Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023).
But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. These include
Inside the Dominance of Magnificent Seven
The Magnificent Seven stocks have a significant impact on the Nasdaq index, as they collectively account for a major portion of its total weighting. Despite recent fluctuations in the market, some of the Magnificent Seven Stocks, including Apple, Microsoft, Amazon, Google, Nvidia, and Meta, continue to exert a substantial impact on the tech-heavy Nasdaq index mainly due to their meaningful positions in the Artificial Intelligence (AI) space. The AI boom made them stars in 2023.
What About Other Tech Jewels?
Even in the narrow market breadth in 2023, some other tech ETFs that are not solely focused on “Magnificent Seven” shined. With the Fed expected to cut rates by 75 bps in 2024, overall tech space should do well as the area thrives better in a low-rate environment.
Already, market breadth has continued to broaden, and smaller tech companies are likely to excel. Plus, the AI boom is ongoing, which is expected to push the space to another height next year.
ETF Picks
Below, we highlight those winning tech ETFs that trumped even Magnificent Seven in 2023.
VanEck Digital Transformation ETF (DAPP) – Up 192.3%
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. Along with DAPP, several other digital asset ETFs, bitcoin mining ETFs and blockchain ETFs have exceled and beaten MAGS this year by a wide margin (read: Block (SQ) Soars on Upbeat Earnings & Outlook: ETFs to Gain).
VanEck Semiconductor ETF (SMH) – Up 63.9%
The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. Along with SMH, other semiconductor ETFs also soared this year (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 63.9%
The underlying NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. The fund includes semiconductors (25.85%), Systems Software (12.33%), Application Software (9.82%), Interactive Media & Services (7.88%), Internet Services & Infrastructure (6%) and so on.
iShares U.S. Technology ETF (IYW) – Up 60.4%
The underlying Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
WisdomTree Cybersecurity Fund (WCBR) – Up 59.1%
The underlying WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cyber security-oriented products. The fund charges 45 bps in fees (read: Here's Why Cybersecurity ETFs Are At a 52-Week High).
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Individually, Apple, Alphabet and Microsoft are up more than 50% each, Meta shares are up about 165%, Amazon has gained 70%, Nvidia has skyrocketed about 233% and Tesla is up nearly 118% this year (as of Dec 12, 2023). | These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. VanEck Semiconductor ETF (SMH) – Up 63.9% The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. | 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. But there are a few tech ETFs that have beaten even the Magnificent Seven ETF MAGS. | These stocks include Alphabet GOOGL, Apple AAPL, Amazon AMZN, Meta Platforms META, Microsoft MSFT, Nvidia NVDA and Tesla TSLA. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Roundhill Magnificent Seven ETF (MAGS): ETF Research Reports WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. That fund is up about 34% this year. |
||
12086.0 | 2023-12-13 00:00:00 UTC | 1 Warren Buffett Stock That Could Go Parabolic in 2024 | AAPL | https://www.nasdaq.com/articles/1-warren-buffett-stock-that-could-go-parabolic-in-2024 | Investing genius Warren Buffett is known for his unblinking long-term strategy. His wealth-building mastery is built on deep analysis of business quality and market value.
Show him a company that's producing consistent earnings growth -- thanks to a well-defended business moat -- and is so simple it could be managed by a ham sandwich, and he'll ask for a decade's worth of annual reports. Only after finishing that light bedside reading will he consider the stock's valuation. The stocks under management by Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have passed an unrivaled gauntlet of quality checks.
That doesn't make Buffett's investing style boring. Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Cupertino's peerless brand loyalty sets it apart from the competition, and Buffett has called it "a better business than any we own."
Electronics that are constantly on the bleeding edge of style and innovation may not sound like Warren Buffett's style, but he has learned to love the empire that Steve Jobs built.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But you're not here for another bullish Apple analysis. The headline that brought you in promised to show you a Buffett stock with the ability to go parabolic, and I don't think Apple fits that bill. It already sports the largest market cap on the planet with a 56% tailwind in 2023. It won't be easy to spark a truly game-changing jump from this lofty level.
I'm looking further down Berkshire's impressive stock list. The Buffett stock I have in mind represents just 0.4% of Berkshire's total holdings but is poised to deliver strong gains from this modest starting point. And don't worry -- Berkshire's portfolio may include some unfamiliar names but you have definitely heard of my favorite hyper-growth idea on the list.
Hello, Amazon!
E-commerce and cloud computing giant Amazon (NASDAQ: AMZN) plays in the same league as Apple in some ways. It's a true business titan with a trillion-dollar market cap.
Both companies serve consumers directly, and their favorite target markets overlap from time to time. For example, the Alexa ecosystem offers many products also found in Apple's iOS and HomeKit universe, and their video-streaming services compete for eyeball hours and industry awards regularly.
But the two innovators are also different where it counts.
Founder and chairman Jeff Bezos famously instilled a permanent "Day One" mentality in his company, always running the increasingly gargantuan business like a hungry little start-up. That ambitious mentality shows in the financial results. Amazon's revenue has increased at a compound annual growth rate (CAGR) of 24% in the last five years. Apple's top-line CAGR stopped at 8% over the same period.
Many investors gave up on Amazon in 2022, as the company adjusted its business plan to meet the inflation crisis with layoffs and a slower short-term growth target. Apple faced similar challenges, but its share price never slipped lower.
Looking ahead, I see a stronger economy boosting both Apple's and Amazon's retail sales over the next few years. However, Amazon is also an established leader in high-performance cloud computing, giving it a leg up on slower-moving peers, like Apple, in the booming field of artificial intelligence (AI).
As a result, Amazon's stock looks like a bargain next to Apple's. Comparing their price-to-sales ratios tells a thousand words in two simple charts:
AMZN Revenue (TTM) data by YCharts.
Mind you, I'm not throwing Apple under the bus. In my eyes, Berkshire's $179 billion Apple investment looks likely to match or outperform the general market for years to come, but in a slow and steady manner that I can't call "parabolic" with a straight face. It's more of a rock-solid value play, suitable for protecting the wealth you've already built.
At the same time, Amazon's shares seem deeply undervalued in light of its unstoppable sales growth and the barely exploited AI opportunity. The $1.5 billion Warren Buffett and his team have invested in this stock should soar to new heights in 2024 and beyond. If you're looking for a Buffett-approved growth investment, Amazon should be first on your list.
Warren Buffett regrets not getting into Amazon sooner, but it's never too late to start a position in this fantastic and undervalued growth stock.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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. Anders Bylund has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Show him a company that's producing consistent earnings growth -- thanks to a well-defended business moat -- and is so simple it could be managed by a ham sandwich, and he'll ask for a decade's worth of annual reports. For example, the Alexa ecosystem offers many products also found in Apple's iOS and HomeKit universe, and their video-streaming services compete for eyeball hours and industry awards regularly. | Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. The stocks under management by Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have passed an unrivaled gauntlet of quality checks. E-commerce and cloud computing giant Amazon (NASDAQ: AMZN) plays in the same league as Apple in some ways. | Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Warren Buffett regrets not getting into Amazon sooner, but it's never too late to start a position in this fantastic and undervalued growth stock. Before you buy stock in Amazon, 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 Amazon wasn't one of them. | Berkshire's largest holding is iPhone maker Apple (NASDAQ: AAPL), which currently occupies 49% of the Buffett conglomerate's total investment portfolio. Hello, Amazon! Before you buy stock in Amazon, 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 Amazon wasn't one of them. |
||
12087.0 | 2023-12-13 00:00:00 UTC | Best Stock to Buy: Apple vs. Coca-Cola | AAPL | https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-coca-cola | When trying to identify investment ideas, one way people can keep it simple is to look at the companies they might be customers of. With this in mind, two well-known consumer stocks might be on your radar.
I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. There are compelling reasons to want either of these businesses in your portfolio. But which of these top Warren Buffett stocks is the better buy right now?
Incredible customer loyalty
Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. However, it's the ecosystem that it built between all of its hardware and software that really makes this business special. Customers pay higher prices for its devices, and then get locked in thanks to all the services Apple offers, and how well they integrate across those devices. This gives it a huge competitive advantage.
To be fair, Apple has hit a rough patch recently. Its revenue declined 2.8% in its fiscal 2023 (which ended Sept. 30). Macro uncertainty, mainly around higher interest rates and inflationary pressures, might be discouraging shoppers from spending on discretionary items.
But this is still one of the most financially sound enterprises out there, providing a level of safety and security that not many stocks can offer investors. Apple produced $100 billion of free cash flow in fiscal 2023, the vast majority of which it used to repurchase shares. This boosts earnings per share, something that Buffett certainly appreciates.
Powerful brand recognition
Coca-Cola's defining trait is its incredible brand strength. The company sells its products in more than 200 different countries across the globe -- an unbelievably wide reach that makes it recognizable to people everywhere. Plus, Coca-Cola's consistency is something that consumers can rely on, especially for a low-cost product like soft drinks.
This brand advantage has benefited the company by allowing it to flex its pricing power. In the third quarter, Coca-Cola's sales were up 8% year over year. Management also highlighted that pricing was up 9%, a key reason for the healthy top-line gain. Due to strong momentum, executives raised their full-year guidance for both revenue and earnings.
Coca-Cola is a mature business, so it isn't going to register outsized growth like many tech stocks, but its stability and durability could be intriguing for some investors. The company boasts a stellar operating margin of 27.4%, which supports a dividend that at current share prices yields 3.1%.
A difficult decision
There's no doubt that both Apple and Coca-Cola are outstanding businesses. The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate.
There isn't much disparity between these two companies when it comes to their earnings growth outlooks. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple.
Valuation could be more a meaningful metric to differentiate between them. Coca-Cola shares trade at a price-to-earnings ratio of under 24 right now, a sizable discount to Apple's 32. It's worth noting that Apple stock's 50% gain in 2023 is all attributable to investors deeming it worthy of a higher multiple.
Apple gets a lot of attention for good reasons. It's the world's most valuable company, sells one of the most successful tech products in history in the iPhone, and is ingrained in millions of people's day-to-day lives. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice.
However, Apple has been the better investment by far over the past one-, three-, five-, and 10-year periods. Its valuation is steep, for sure, but I think it's a better stock to own than Coca-Cola.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. The main reasons being that they possess some of the strongest consumer brands in the world and have excellent profitability, which helps explain why they are large holdings in the portfolio of Buffett's conglomerate. The consensus analyst estimate is that the beverage maker's earnings per share are expected to grow at an annualized clip of 10.3% in the next five years, about the same rate as is forecast for Apple. | I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. Incredible customer loyalty Apple sells some of the most in-demand products and services on the planet, and it enjoys extreme customer loyalty. Before you buy stock in Apple, 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 Apple wasn't one of them. | I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. Before you buy stock in Apple, 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 Apple wasn't one of them. 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. | I'm talking about Apple (NASDAQ: AAPL) and Coca-Cola (NYSE: KO), which readers have undoubtedly heard of. There are compelling reasons to want either of these businesses in your portfolio. But its shares are expensive enough that some investors might view buying stock in Coca-Cola as a better choice. |
||
12088.0 | 2023-12-13 00:00:00 UTC | Will Apple Stock Reign Supreme Yet Again in 2024? | AAPL | https://www.nasdaq.com/articles/will-apple-stock-reign-supreme-yet-again-in-2024 | It seems like everyone loves Apple (NASDAQ: AAPL). Well, at least 29% of those reading this do. That is theglobal marketshare for the smartphone maker, putting it in the lead over competitors such as Samsung and Alphabet's Google. With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business.
So lucrative that even the Oracle of Omaha himself, Warren Buffett, bought more than 5% of the company for Berkshire Hathaway. With the stock up 368% in the last five years, Buffett's stake is now worth over $150 billion, with shares crushing the market over the same time frame.
But the question is: What does the future of Apple stock look like? Will the smartphone leader still reign supreme in 2024?
Stagnant revenue, declining hardware sales
While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. For the fiscal year ending in September, its revenue actually dipped slightly from 2022 and is off 2.8% from all-time highs over the past 12 months. This led net income to fall slightly, from $100 billion in fiscal year 2022 to $97 billion this year.
The company is struggling to grow sales across each of its hardware segments. The smartphone, Mac, iPad, and wearables (watches and AirPods) segments saw sales decline in 2023.
Most important is the smartphone segment, which does more than $200 billion in annual sales. With smartphone unit volumes stagnating around the world, Apple may be finally hitting a ceiling for this massive business. It has mitigated unit declines with consistent price increases, but last year these weren't enough to get revenue moving in the positive direction.
Geopolitical risks, litigation risks
While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment.
The problem is, Apple's software service cash cows are currently under threat from lawsuits and regulators around the globe.
In numerous regions, Apple's practices with its App Store have come under threat. It currently takes a 30% charge on most purchases made through apps on its devices and restricts other mobile app stores from operating on its devices.
Apple accepts an estimated $20 billion payment every year from Alphabet to make Google Search the default search engine on its Safari web browser. The United States government is challenging this deal on anticompetitive grounds.
Over the next five years, Apple faces a big threat for these two profit pools that make up the majority of its services revenue. If things go poorly for the company, the last few years of fast services growth may come to an end.
From a longer-term perspective, investors may need to worry about Apple's geographical diversification, especially when it comes to China. Last year, it generated $72.5 billion in revenue from the Greater China region, and it has most of its manufacturing in the country. If the new Cold War with the United States gets worse, Apple's business and manufacturing could come under threat.
It is hard to quantify the exact magnitude of this risk, but it is a risk nonetheless that Apple investors should think strongly about.
Can the Vision Pro spur growth?
Even though Apple shares are up 52% year to date, the company has seen its financials stagnate and there are some growing risks to the business that should not be ignored.
But it isn't all bad news for the technology giant. In 2024, the hardware maker is coming out with what will hopefully be its next hit product: the Vision Pro.
Unveiled at a demo earlier this year, the Vision Pro is a pair of augmented reality glasses. The company is hoping to take the next step in computing with the devices, which feature highly advanced sensors and cameras, and plans to sell them at $3,500 a pop. Apple expects to sell 1 million units in 2024 and 10 million units over the next three years.
That could equate to $35 billion in revenue. That's not too material compared to the company's close to $400 billion in annual sales, but this could generate some momentum and be the start of Apple's next big business over the next five to 10 years.
The valuation is not attractive
Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. The key reason is its valuation.
As of this writing, Apple has a price-to-earnings ratio (P/E) of 32. That is well above the S&P 500 average of 26 for a company with declining sales that is also dealing with regulatory antitrust risk and is in the middle of geopolitical tensions.
Yes, the stock has performed remarkably over the past five, 10, and 20 years, but this doesn't have any bearing on what shares will do in the future. Typically, investors should want a discounted valuation when dealing with declining revenue and mounting risks on the horizon.
Apple stock is not likely to reign supreme in 2024. Investors should avoid buying shares at current prices.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It seems like everyone loves Apple (NASDAQ: AAPL). With strong marketing, quality products, and locked-in users, Apple has established itself as the premium smartphone maker around the world, which has been quite a lucrative business. This segment is smaller than smartphone hardware sales from a revenue perspective, but has much higher profit margins, making it a key growth driver for Apple at the moment. | It seems like everyone loves Apple (NASDAQ: AAPL). Stagnant revenue, declining hardware sales While the business is clearly ginormous, Apple has struggled to grow its revenue in recent quarters. Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. | It seems like everyone loves Apple (NASDAQ: AAPL). Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. | It seems like everyone loves Apple (NASDAQ: AAPL). Geopolitical risks, litigation risks While its hardware segments are stagnating, Apple's software services segment put up solid growth in 2023, hitting $85 billion in revenue. The valuation is not attractive Despite its dominant position in the smartphone market and the potential of the Vision Pro, Apple's stock looks unlikely to reign supreme in 2024. |
||
12089.0 | 2023-12-13 00:00:00 UTC | 1 Ultra-High Dividend Yield Stock to Buy Hand Over Fist in 2024 | AAPL | https://www.nasdaq.com/articles/1-ultra-high-dividend-yield-stock-to-buy-hand-over-fist-in-2024 | Investors who are looking for growth in their portfolio may be captivated by technology stocks, especially given all of the recent hoopla around artificial intelligence (AI). But portfolio construction requires balance, and one of the pillars of a well-diversified portfolio is dividend stocks.
Business development companies (BDCs) can be a great source of dividend income, in part because they are required to pay out at least 90% of their taxable income each year as dividends.
One leading BDC that has consistently outperformed the S&P 500 is Ares Capital (NASDAQ: ARCC). With the shares trading at about $20, its dividend yield is now 9.5%, making this an opportune time to open a position and set yourself up to reap the passive income rewards.
What makes Ares Capital different?
Ares Capital sits in a unique position in the BDC world. BDCs typically compete with banks and even venture capital or private equity funds depending on the deal structure. However, most investment banks typically seek out high-profile companies and offer them a variety of solutions pertaining to mergers and acquisitions, raising capital through the equity markets, or borrowing money via the debt markets.
In contrast to many large financial institutions, Ares works with a lot of middle-market companies that may be underserved by traditional capital providers. Even among its peers, this approach is unusual. Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology.
By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks.
Image Source: Getty Images
An under-the-radar Warren Buffett stock
One of the core principles of Warren Buffett's investment philosophy is to seek out dividend income. Within the Berkshire Hathaway portfolio, some of the largest dividend generators include Apple, Coca-Cola, and Bank of America. But did you know Buffett has a little-known portfolio outside of Berkshire Hathaway?
The investment firm New England Asset Management (NEAM) is a subsidiary of Berkshire Hathaway. While NEAM is much smaller than its parent in terms of total assets, its portfolio contains a larger number of stocks -- one of which is none other than Ares Capital.
Data source: YCharts.
Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock.
Should you buy Ares Capital stock?
From a valuation perspective, a useful measure for assessing Ares Capital stock is the price-to-book (P/B) ratio. It's a metric commonly used in analyzing banks and other financial services businesses.
Data source: YCharts.
The P/B ratio for Ares Capital is currently 1.06, right in line with its 10-year average. But perhaps more interesting is that it's well below its peak of 1.47. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2.
Data source: YCharts.
The chart above shows the return of Ares Capital stock relative to a number of S&P 500-themed exchange-traded funds (ETFs) over the past five years. Investors can clearly see that Ares Capital is the top-performing equity. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer.
Should you invest $1,000 in Ares Capital right now?
Before you buy stock in Ares Capital, 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 Ares Capital 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Adam Spatacco has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By taking a different approach, Ares is not only carving out a niche in the world of BDCs, but it has found a way to tap into the types of activities usually handled by traditional investment banks. Given the company's steadily increasing dividend over the past 10 years and its eye-popping total returns of 195%, it's easy to understand why Buffett loves this multibagger stock. Given its discount relative to other leading BDCs and its low valuation compared to past periods, this looks like a bargain opportunity to consider buying some shares in this market-beating dividend payer. | Leading BDCs such as Hercules Technology Growth Capital or Horizon Technology Finance tend to partner with the best start-ups in growth industries such as energy, life sciences, and technology. Moreover, that valuation also pales in comparison to those of Hercules Technology Growth Capital and Horizon Technology Finance, which have P/B ratios of more than 1.2. Before you buy stock in Ares Capital, 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 Ares Capital wasn't one of them. | Should you buy Ares Capital stock? Before you buy stock in Ares Capital, 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 Ares Capital wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Should you buy Ares Capital stock? Should you invest $1,000 in Ares Capital right now? Before you buy stock in Ares Capital, 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 Ares Capital wasn't one of them. |
||
12090.0 | 2023-12-13 00:00:00 UTC | The Dow Jones Just Hit a Record High. History Says Stocks Will Do This Next. | AAPL | https://www.nasdaq.com/articles/the-dow-jones-just-hit-a-record-high.-history-says-stocks-will-do-this-next. | The Dow Jones Industrial Average (DJINDICES: ^DJI) tracks 30 large U.S. stocks. Inclusion is limited to companies that have excellent reputations, demonstrate sustained growth, and generate widespread interest among investors. To that end, the index is commonly regarded as a collection of blue chip stocks, though it also serves as one of three major barometers for the overall U.S. stock market, with the other two being the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC).
The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory.
Past performance is never a guarantee of future returns, but crossing the bull market threshold has historically been a good sign for stocks.
History says the Dow Jones is headed much higher
The Dow Jones has run through eight bull markets in the last 50 years. The average one lasted about five years and saw the index climb 172%. But returns varied substantially between individual bull markets, as detailed in the table below:
BULL MARKET START
DOW JONES RETURN
December 1974
76%
February 1979
38%
August 1982
250%
October 1987
73%
October 1990
396%
October 2002
94%
March 2009
348%
March 2020
98%
Average
172%
Data source: YCharts. Chart by author.
Here's the upshot: If the new bull market aligns with the historical average, the Dow Jones will increase 172% over a five-year period. But the current bull market technically started when the Dow Jones bottomed in October 2022. The index has since climbed about 27%, bringing the implied upside down to roughly 110% over four years from today's levels.
However, returns have varied dramatically between past bull markets, so investors would do better to benchmark against a different metric. Specifically, the Dow Jones returned about 9% annually over the past four decades, and its performance will likely be similar over the next four decades.
Investors looking to capitalize on that should consider buying some of the more promising blue chip stocks in the Dow Jones. For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders.
Salesforce has been the leader in customer relationship management (CRM) software for 10 consecutive years, and the CRM market is forecast to grow by 14% annually through 2030. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade.
Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation.
An index fund stacked with blue chip stocks
Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (NYSEMKT: DIA).
The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. The five largest holdings in the fund are detailed below:
UnitedHealth Group: 9.4%
Microsoft: 6.7%
Goldman Sachs Group: 6.4%
Home Depot: 5.9%
McDonald's: 5.2%
At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95. The index fund bears a below-average expense ratio of 0.16%, meaning the annual fee on a $10,000 portfolio would be $16.
Here's the bottom line: The Dow Jones has consistently created wealth over long periods of time, and I'd bet my bottom dollar that trend continues in the future. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index.
Should you invest $1,000 in Dow Jones Industrial Average (Price Return) right now?
Before you buy stock in Dow Jones Industrial Average (Price Return), 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 Dow Jones Industrial Average (Price Return) 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
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Home Depot, Microsoft, and Salesforce. The Motley Fool recommends Intel and UnitedHealth Group and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The upshot of that momentum is that the Dow Jones reached a record high on Wednesday, meaning the blue chip index just entered bull market territory. Similarly, Microsoft is the leader in enterprise software-as-a-service and operates the second-largest cloud computing platform; those markets are also projected to grow by 14% annually through the end of the decade. | The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The five largest holdings in the fund are detailed below: UnitedHealth Group: 9.4% Microsoft: 6.7% Goldman Sachs Group: 6.4% Home Depot: 5.9% McDonald's: 5.2% At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index. | The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Patient investors looking to capitalize on that upward momentum can purchase shares of individual stocks like Microsoft or Salesforce, or they can purchase shares of the SPDR Dow Jones Industrial Average ETF to spread capital across the entire blue chip index. | The Dow Jones traded sideways through the first 10 months of the year, but the index has soared 12% since the end of October on particularly strong momentum in four stocks: Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The SPDR Dow Jones Industrial Average ETF is an index fund that tracks all 30 blue chip stocks in the Dow Jones, meaning it provides exposure to some of the most economically influential U.S. companies. Before you buy stock in Dow Jones Industrial Average (Price Return), 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 Dow Jones Industrial Average (Price Return) wasn't one of them. |
||
12091.0 | 2023-12-13 00:00:00 UTC | Tesla Stock Can Soar in 2024 if It Does These 3 Things | AAPL | https://www.nasdaq.com/articles/tesla-stock-can-soar-in-2024-if-it-does-these-3-things | Tesla (NASDAQ: TSLA) stock has crushed the market so far this year. However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs.
Tesla has what it takes to continue its hot streak going into 2024. But it has to execute across some key aspects of its business. Here's what to watch next year and what the electric car stock needs to do to justify a higher valuation.
Image source: Getty Images.
Managing margins
In hindsight, it's easy to see why Tesla hit an all-time high in early 2022. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins.
Tesla carried its torrid growth pace into 2022 -- posting a banner year across the board. But Tesla's margins have since come down, and its top- and bottom-line growth rates have slowed.
Over the last year, Tesla's trailing-12-month revenue has grown by only 17.8%, while its net income is down 14.3%, and its operating margin has fallen by over a third to 11.2%. The following chart does a good job of showing Tesla's massive growth, followed by this year's deceleration.
TSLA Operating Margin (TTM) data by YCharts
Price cuts and lower growth contributed to Tesla's margin decline this year. However, its margins could be lower in the future as Tesla tries to unlock entry into the coveted mass-market electric vehicle market, which would shift the company's strategy toward higher volume, lower-priced vehicles.
In its third-quarter earnings presentation, the company reiterated its goal of a 50% long-term production compound annual growth rate. It would be a worthy trade-off if Tesla achieves solid revenue and earnings growth at the expense of a lower margin.
In the short term, be on the lookout to see if Tesla can improve its operating margin. Longer-term, the challenge will be finding the sweet spot between revenue growth and profitability.
Monetizing AI and robotics
Tesla has done an impeccable job of becoming a profitable and (generally) high-growth electric vehicle company. But it has yet to monetize its artificial intelligence (AI) and robotics ventures -- mainly fully autonomous self-driving vehicles.
For several years now, Tesla has been flaunting its self-driving software. It got to the point where Tesla was thinking far too long-term and had to reel itself in and focus on generating positive cash flow from the Model 3 and then the Model Y. Thankfully, Tesla did that. But the company has a history of throwing money at projects that either pan out later than expected or don't pan out at all.
Tesla has an extremely attractive portfolio of AI and robotics ideas. Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others.
While you could argue that Tesla could have made a lot more money if it hadn't spent so many resources on self-driving, the long-tail potential is too appealing to ignore. If you invest in Tesla, you have to accept that this will simply be a part of the company's budget and that it may not prove to be a worthwhile investment for some time.
Preserving the balance sheet
Tesla has done an excellent job of keeping debt off of its balance sheet and relying on cash flows to fund both short- and long-term investments. The company has $15.9 billion in cash and equivalents on its balance sheet and just $3.7 billion in long-term debt.
It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. In other words, what is the extent of the damage to the balance sheet if expenses stay the same or increase, but cash flows decline?
The stock market can be overly focused on the short term. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off. Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off.
Know what you're getting into before you invest
If you invest in Tesla, it's important to understand that the company will probably stick to its long-term plans even at the expense of its short-term performance and the wishes of Wall Street. This mindset is why Tesla stock can suffer steep sell-offs and meteoric gains. When the stars align, Tesla looks like it can do no wrong. But when Tesla stubbornly pursues its goals no matter the market cycle, it can look reckless and borderline irresponsible.
Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. That way, you aren't caught off guard if the stock moves to the upside or the downside.
If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. But there's also a good chance that Tesla needs more time to return to the growth that investors have come to expect.
In sum, Tesla has the makings of an excellent long-term investment and is certainly worth holding or even buying a small position in. But there's no rush to dive in headfirst and buy the stock hand over first at this time.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla made the list -- but there are 9 other stocks you may be overlooking.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Cracking the code on vehicles that can safely drive themselves would open the door to electric robotaxis -- an idea integral to the ultra-bullish investment thesis held by Cathie Wood and others. It is impressive that Tesla can keep a largely debt-free balance sheet despite being in the capital-intensive auto industry and supporting expensive long-term projects. If Tesla barrels ahead full throttle on its multidecade plans even as growth slows, its performance deteriorates, and its leverage increases, then the stock could sell off. | However, it's still down over 40% from its all-time high during a time when many other mega-cap growth stocks, like Microsoft, Apple, and Nvidia, are making new all-time highs. The once-unprofitable company shocked the investing world with quarter after quarter of consistent profits paired with high revenue growth and high margins. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. | One of the biggest things Tesla investors should watch in the coming years is how the quality of the balance sheet responds if there is a prolonged slowdown in demand or if Tesla tries to invest even during a downturn in the business cycle. Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. | Even if investing throughout the market cycle is the right long-term move, it's vital to recognize that the market may be unwilling to think so long-term during a broad sell-off. Tesla is one of those companies where understanding the long-term investment thesis and what can move the stock in the short term are equally important. If Tesla improves its top- and bottom-line growth rates, bolsters its margins, charts a path toward monetizing AI and robotics, and maintains or improves its rock-solid balance sheet, the stock could surpass a new all-time high in 2024. |
||
12092.0 | 2023-12-13 00:00:00 UTC | Technology Sector Update for 12/14/2023: ADBE, MVIS, AAPL, GOOG | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-14-2023%3A-adbe-mvis-aapl-goog | Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%.
The Philadelphia Semiconductor index rose 2.1%.
In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors.
MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million.
Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Apple fell 0.5%, and Alphabet dropped 1.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. The Philadelphia Semiconductor index rose 2.1%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. The Philadelphia Semiconductor index rose 2.1%. |
||
12093.0 | 2023-12-13 00:00:00 UTC | Magnificent Seven Could Deliver More Gains in 2024 | AAPL | https://www.nasdaq.com/articles/magnificent-seven-could-deliver-more-gains-in-2024 | The magnificent seven cohort of mega-cap growth stocks have loomed large for investors. They drove a significant portion of the impressive returns notched by broad market indexes.
Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. History isn’t guaranteed to repeat. And asking for a similar upside to what was notched by the magnificent seven may be too demanding. But these beloved names may continue their bullish ways in 2024.
That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both ETFs follow the Nasdaq-100 Index (NDX). They’re fine options for investors who want exposure to each of the magnificent seven without having to directly own those names.
Expensive, But Justifiably So
During rallies, such as the one that occurred this year, investors often that the Nasdaq-100 is richly valued. With QQQ and QQQM higher by 51.49% year-to-date, a case can be made that plenty of the stocks residing in the ETFs are expensive. But when it comes to the magnificent seven, that’s not necessarily an indictment. Why? Because these companies have the fundamentals to support elevated earnings multiples.
“The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. This might sound obvious, but these companies are some of the most profitable and cashflow generative in the world. For that reason, they command higher-than-average valuations in the stock market,” according to Schroders.
Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. Experienced investors know as much. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. Still, it’s worth remembering that there’s more to the ETFs and the magnificent seven than just AI.
“While generative AI has and will be a significant tailwind for some of these businesses (as with Nvidia), their strength in 2023 cannot be attributed solely to AI. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. This has led to significant improvements in profitability and cash flow, particularly at Meta,” concluded Schroders.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Big gains by Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla are prompting market participants to wonder whether or not sequels are in store next. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. | That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). “The second point is that it is important to remember that large market capitalisation can be justified by large fundamentals. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. | That would benefit a variety of exchange traded funds, including the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. We only need to look at Meta/Google to illustrate this - both companies are likely to deploy generative AI aggressively in the coming years, but the shares have been supported by the combination of recovering end markets and cost optimisations. | Another point to consider is that AI is far from the only reason the magnificent seven surged this year. And that's actually good news for QQQ and QQQM. QQQ and QQQM notched impressive showings prior to AI becoming the focal point of growth investing this year. |
||
12094.0 | 2023-12-13 00:00:00 UTC | Apple (AAPL) Advances But Underperforms Market: Key Facts | AAPL | https://www.nasdaq.com/articles/apple-aapl-advances-but-underperforms-market%3A-key-facts | Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.19%.
Heading into today, shares of the maker of iPhones, iPads and other products had gained 5.29% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 6.94% in that time.
The upcoming earnings release of Apple will be of great interest to investors. The company is forecasted to report an EPS of $2.08, showcasing a 10.64% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $117.31 billion, up 0.13% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.56 per share and a revenue of $393.42 billion, signifying shifts of +7.01% and +2.65%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Apple presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 30.16. This denotes a premium relative to the industry's average Forward P/E of 12.24.
We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Mini computers stocks are, on average, holding a PEG ratio of 2.73 based on yesterday's closing prices.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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. | Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com. | Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. | Apple (AAPL) closed the most recent trading day at $198.11, moving +0.08% from the previous trading session. We can additionally observe that AAPL currently boasts a PEG ratio of 2.73. To follow AAPL in the coming trading sessions, be sure to utilize Zacks.com. |
||
12095.0 | 2023-12-13 00:00:00 UTC | US STOCKS-Dow scores second record close in a row on lower-rate bets | AAPL | https://www.nasdaq.com/articles/us-stocks-dow-scores-second-record-close-in-a-row-on-lower-rate-bets | By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%.
Tesla TSLA.O shares surged 4.9%, with about $40 billion worth changing hands. Its turnover was more than double that of Nvidia NVDA.O, the next most traded company. The heavyweight chipmaker gained 0.5%.
Sectors that have underperformed this year also rose. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR.
The S&P 500 .SPXclimbed 0.26% to end at 4,719.55 points. It remains down less than 2% from its record high close in January 2022.
The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points.
Volume on U.S. exchanges was unusually heavy, with 17.1 billion shares traded, compared to an average of 11.1 billion shares over the previous 20 sessions.
The PHLX semiconductor index .SOX surged 2.7% to close at a record high. The Russell Index .RUT of smaller companies also jumped about 2.7%.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell 6.35% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.9-to-one ratio.
The S&P 500 posted 96 new highs and no new lows; the Nasdaq recorded 259 new highs and 64 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
(([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. | Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. | Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The Nasdaq Composite Index .IXICgained 0.19% at 14,761.56 points, while the Dow Jones Industrial Average .DJIrose 0.43% to 37,248.35 points. | Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - U.S. stocks ended firmer on Thursday, with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. The PHLX semiconductor index .SOX surged 2.7% to close at a record high. | Apple AAPL.O hit an intra-day record high before surrendering some of its gains to close up 0.08%. Of the 11 S&P 500 sector indexes, six closed higher, led by energy .SPNY, up 2.94%, followed by a 2.62% gain in real estate .SPLRCR. The PHLX semiconductor index .SOX surged 2.7% to close at a record high. |
||
12096.0 | 2023-12-13 00:00:00 UTC | US STOCKS-S&P 500 ends higher as investors bet on lower rates | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-as-investors-bet-on-lower-rates | By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high.
Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
Sectors that have underperformed this year also rose, including energy and real estate.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
(([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. | Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. | Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. Sectors that have underperformed this year also rose, including energy and real estate. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. | Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. "The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. | Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Tesla TSLA.Oshares surged, with over $37 billion worth changing hands. |
||
12097.0 | 2023-12-13 00:00:00 UTC | US STOCKS-Wall St subdued, day after rally on Fed statement | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-day-after-rally-on-fed-statement | By Caroline Valetkevitch
NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year.
Apple AAPL.O shares were down 0.2% after hitting a record high in the session.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12.
Among other decliners, AdobeADBE.O shed 7.1% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered decliners on the NYSE by a 3.98-to-1 ratio; on Nasdaq, a 2.30-to-1 ratio favored advancers.
The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
(([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. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12. The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view." | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. |
||
12098.0 | 2023-12-13 00:00:00 UTC | Earnings Season Update and Analyst Reports for Apple, Bank of America & S&P Global | AAPL | https://www.nasdaq.com/articles/earnings-season-update-and-analyst-reports-for-apple-bank-of-america-sp-global | Thursday, December 14, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the evolving earnings picture as the early Q4 results come in, in addition to featuring new research reports published by our team analysts today. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Earnings Season Update
Adobe became the third S&P 500 company to release quarterly resuls that get counted as part of our 2023 Q4 earnings tally. The Adobe results were for the company's fiscal quarter ending in November, as were the earlier resutls from AutoZone and Oracle.
A number of other bellwethers like Nike and FedEx will similarly be coming out with their respective fiscal November-quarter results, which will get counted as part of the 2023 Q4 earnings season tally. The Q4 reporting cycle will really get going with the JPMorgan results on January 12th, 2024. But we will have seen such early November-quarter results by almost two dozen S&P 500 members by the time JPMorgan reports its results.
For the three S&P 500 members that have reported such Q4 results, total earnings up +16.3% from the same period last year on +6.7% higher revenues, with with two out of the three (66.7% of the total) beating EPS and revenue estimates. This is comparable performance relative to what we had seen from this group of three index members in the preceding period.
Looking at Q3 as a whole, combining the actuals for these three S&P 500 members with estimates for the still-to-come companies, total earnings are expected to decline -0.1% from the same period last year on +2.3% higher revenues. This would follow the +3.5% earnings growth in the preceding period, which came after three back-to-back quarters of earnings declines.
Unlike the last two quarters, estimates for Q4 have been under pressure since the quarter got underway, with the current -0.1% decline down from +5.5% in early October at the strart of the quarter. Estimates were largely stable in the comparable periods of the preceding two quarters. In this respect, the Q4 revisions trend represents a notable shift.
Today's Featured Analyst Reports
Apple shares have performed roughly in-line with the Zacks Tech sector (+44.3% vs. +44.5%) but have handily outperformed the S&P 500 index (up +21.3%). The company is benefiting from strong demand for iPhone. Apple expects the iPhone’s year-over-year revenues to grow on an absolute basis in first-quarter fiscal 2024.
Revenues for Mac are expected to significantly accelerate compared with the fourth-quarter fiscal 2023’s reported figure. It expects the year-over-year revenue growth for both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to a different timing of product launches.
For the Services segment, Apple expects average revenues per week to grow at a similar strong double-digit rate as it did during the September quarter. It is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ aids subscriber growth.
(You can read the full research report on Apple here >>>)
Shares of Bank of America have gained +4.0% over the past year against the Zacks Banks - Major Regional industry’s gain of +13.2%. Higher interest rates and decent loan demand will keep supporting the company’s net interest income (NII) growth in the upcoming quarters.
Yet, the current tough macroeconomic environment will continue to weigh on the company’s investment banking (IB) business. This, along with the volatile nature of the capital markets, will likely hurt fee income. Due to inflationary pressure, overall costs are expected to remain elevated.
(You can read the full research report on Bank of America here >>>)
S&P Global shares have outperformed the Zacks Business - Information Services industry over the past year (+27.5% vs. +22.4%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products.
New service launches have been aiding the company's growth. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share. Increasing current ratio bodes well for the company.
However, S&P Global remains vulnerable to proceedings, investigations and inquiries concerning the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. More long-term debt than cash does not bode well for the company.
(You can read the full research report on S&P Global here >>>)
Other noteworthy reports we are featuring today include Workday, Inc. (WDAY), Intercontinental Exchange, Inc. (ICE) and 3M Company (MMM).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail
S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High
Featured Reports
Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess
Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction.
Intercontinental (ICE) Banks on Buyouts & Solid Balance Sheet
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Moreover, a solid balance sheet provides financial flexibility.
Safety and Industrial Segment to Aid 3M (MMM), Costs Hurt
Per the Zacks analyst, 3M will benefit from robust momentum in the Safety and Industrial unit, led by strength in the roofing granules business. However, high costs remain concerning for the company.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Biogen's (BIIB) New Drugs Leqembi & Others Can Revive Growth
The Zacks analyst believes Biogen's new products like Leqembi for Alzheimer's disease, Skyclarys for Friedreich's ataxia and Zurzuvae for depression can help revive growth
Fastenal (FAST) Rides on Daily Sales Growth, Expenses High
Per the Zacks analyst, Fastenal is benefiting from daily sales growth, reasonable expense control and growth at Onsite locations. However, higher occupancy-related expenses are concerns.
Bill Holdings (BILL) Rides on Strong SMB Business clientele
Per the Zacks analyst, Bill is benefiting from an expanding small and medium business clientele, as well as a diversified business model.
New Upgrades
Strategic Pacts Aids Walgreens (WBA) Amid Margin Woes
Per the Zacks analyst, Walgreens' partnership with health technology firm Pearl Health will advance its value-based care delivery. Slowdown in generic introduction is affecting margins.
Technological Prowess & Client Retention Aid Rollins (ROL)
Per the Zacks analyst, Rollins' real-time service tracking and customer Internet communication technologies have increased its competitive advantage and customer retention.
Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.
New Downgrades
Rising Rates, Risky Nuclear Plant Operation Ail Dominion (D)
Per the Zacks analyst, Dominion's capital projects will become costlier due to the rising interest rates. Risk associated in operating nuclear facilities will create additional challenges.
Mettler-Toledo (MTD) Suffers From Weak Laboratory Segment
Per the Zacks analyst, weak momentum in Laboratory segment due to broad-based softness in China is hurting Mettler-Toledo.
Waters (WAT) Suffers From Weakening Momentum in Asian Market
Per the Zacks analyst, weakness in Asian market due to soft demand conditions in China, is hurting Waters growth prospects.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : 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. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Branch Openings, Rates, Loans Aid BofA (BAC), High Costs Ail S&P Global (SPGI) to Gain From ChartIQ Buyout, Costs High Featured Reports Workday (WDAY) Rides on Healthy Customer Growth, AI Prowess Per the Zacks analyst, high demand for financial and human capital management solutions across industries will likely boost Workday's top line, while its AI services are increasingly gaining traction. These include updated research reports on Apple Inc. (AAPL), Bank of America Corporation (BAC), S&P Global Inc. (SPGI) and a many others. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report To read this article on Zacks.com click here. |
||
12099.0 | 2023-12-13 00:00:00 UTC | 3 Strong Buy Stocks for a Year-End Pickup | AAPL | https://www.nasdaq.com/articles/3-strong-buy-stocks-for-a-year-end-pickup | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s time for investors to do some year-end planning. What worked? What didn’t? If you’re looking to add to your portfolio, identifying strong buy stocks is a good place to start.
Part of every investor’s due diligence is to look at analyst ratings. While they get it wrong sometimes, analyst opinions carry weight because they are deeply immersed in specific companies and sectors.
In 2023, those ratings go well beyond “Buy,” “Sell,” or “Hold.” The idea was to allow analysts more nuance in their recommendations. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. That’s a message to investors to look at those stocks closely.
To be clear, it’s virtually impossible to find a stock that will have a consensus “Strong Buy” rating. However, the stocks on this list are being covered by a statistically significant number of analysts and are getting a substantial number of “Strong Buy” ratings. Therefore, they can be considered strong buy stocks. Here are three of those stocks for you to consider.
Zscaler (ZS)
Source: Sundry Photography / Shutterstock.com
Zscaler (NASDAQ:ZS) is a leader in a specific kind of cybersecurity built on zero trust architecture. What problem is zero trust attempting to solve?
Even before companies were adopting a fully remote or hybrid environment, there were networks spread over multiple cloud networks with remote users and multiple IoT devices. However, having these devices outside of a company’s “perimeter” opens the door for hackers and malware to infect a system.
And ironically, as much as artificial intelligence (AI) is expected to aid companies in their cybersecurity systems, generative AI is increasing the threats these companies face.
That’s where zero trust comes in. This system requires each device and user to be checked with every demand for access. Zscaler’s Zero Trust Exchange is a cloud-based AI-powered threat prevention system. In the third quarter, the company grew at a 30% clip that led the market. The company’s guidance suggests that’s just the beginning.
Out of 40 analysts that have given ZS stock a rating in the last three months, 29 give the stock a “Strong Buy” rating. If you want exposure to strong buy stocks in the cybersecurity sector, Zscaler merits your attention.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) is one of 2023’s best-performing stocks. The company’ has the world’s number one generative AI solution for customer relationship management.
As of this writing, CRM stock is up 93%. Understandably, investors on the sidelines may be hesitant to chase the stock higher. Howeer since this is an article about “Strong Buy” stocks, you already know that Salesforce has that going for it.
However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. The new integrations will further embed Salesforce into the Apple ecosystem. And on December 12, the company announced that they were expanding their partnership with Automatic Data Processing (NASDAQ:ADP) “to reimagine ADPs client experience for ADPs more than one million clients.
That being said, the current consensus price target for CRM stock points to a 7% gain. However, of the 48 analysts that issued a rating on Salesforce in the last three months, 29 gave the stock a “Strong Buy” rating.
Vale (VALE)
Source: rafapress / Shutterstock.com
If you prefer strong buy stocks that also pay attractive dividends, Vale (NYSE:VALE) looks very appealing. It’s a Brazilian-based company that is offering attractive value with a forward price-to-earnings ratio of 6.7 times. it also pays a semi-annual dividend that currently yields 6.94%.
The company is best known for mining iron ore and copper. That would be enough to get it on the radar of many investors. However, the company is also one of the world’s leading miners of nickel. In addition to lithium, nickel is a metal that is essential to the EV industry.
VALE stock is down 12% in 2023 due, in part, to two consecutive quarters of misses on the top and bottom lines. However, the company got back on track in its most recent quarter and is up approximately 8% in the last three months.
Analysts are forecasting earnings growth of 29.7% in the next 12 months. That corresponds to a consensus price target that gives VALE stock a 17% gain in that same period. Out of 23 analysts, 14 give the stock a “Strong Buy” rating.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post 3 Strong Buy Stocks for a Year-End Pickup appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. VALE stock is down 12% in 2023 due, in part, to two consecutive quarters of misses on the top and bottom lines. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. | However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Zscaler (ZS) Source: Sundry Photography / Shutterstock.com Zscaler (NASDAQ:ZS) is a leader in a specific kind of cybersecurity built on zero trust architecture. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) is one of 2023’s best-performing stocks. | However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. Out of 40 analysts that have given ZS stock a rating in the last three months, 29 give the stock a “Strong Buy” rating. | However, in December, Salesforce and Apple (NASDAQ:AAPL) announced an expansion of their partnership. Therefore, when analysts give a stock a “Strong Buy” rating, investors should pay attention. Here are three of those stocks for you to consider. |
||
12100.0 | 2023-12-13 00:00:00 UTC | Meet the 1 Stock Warren Buffett Is Virtually Guaranteed to Be Buying Throughout 2024 | AAPL | https://www.nasdaq.com/articles/meet-the-1-stock-warren-buffett-is-virtually-guaranteed-to-be-buying-throughout-2024 | For the better part of the past six decades, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. The Oracle of Omaha, as he's affably known, has overseen a nearly 20% annualized return in his company's Class A shares (BRK.A) since taking the CEO role in the mid-1960s. On an aggregate basis, we're talking about a gain of 4,355,584%, as of the closing bell on Dec. 8.
When you double up the annualized total return of the benchmark S&P 500 over nearly 60 years, you're going to get noticed. It's why professional and everyday investors closely monitor Berkshire Hathaway's quarterly 13F filings to uncover which stocks the Oracle of Omaha and his team of investors have been buying and selling.
As we prepare to close the curtain on 2023 in roughly two weeks, it's readily apparent that one highly regarded stock is a virtual lock to be purchased by Warren Buffett throughout 2024.
Image source: The Motley Fool.
Buffett and his team are piling into some familiar names
A quick look at Berkshire Hathaway's 13Fs over the past couple of years reveal some popular names that Buffett and his investing lieutenants, Todd Combs and Ted Weschler, have piled into.
Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Apple accounts for nearly half of Berkshire's $365.5 billion investment portfolio.
Since opening a position in Apple during the first quarter of 2016, Buffett and his team have added to their stake on numerous occasions. In fact, Buffett stated during Berkshire's annual shareholder meeting in May that Apple is "a better business than any we own." It's an incredibly strong statement, given that Berkshire owns well-regarded insurer GEICO and highly successful railroad BNSF, among roughly five dozen other businesses.
Buffett's belief that Apple is Berkshire's best business likely has to do with the company's innovation-driven operating model. It's consistently No. 1 in U.S. smartphone market share, and it has a loyal base of consumers that were drawn in by its physical products (iPhone, Mac, and iPad). To boot, CEO Tim Cook is overseeing a natural evolution of the company's operating model that will have Apple focused on higher-margin subscription services.
The Oracle of Omaha is also, undoubtedly, a huge fan of Apple's capital-return program. The largest publicly traded company by market cap in the U.S. is returning $15 billion a year to shareholders via its dividend, and it's repurchased more than $600 billion worth of its common stock since the start of 2013. These buybacks are increasing Berkshire's stake in Apple without Buffett or his "lieutenants" having to lift a finger.
Another familiar name Warren Buffett and his team have been piling into is energy stock Occidental Petroleum (NYSE: OXY). Since the start of 2022, Berkshire Hathaway has added more than 228 million common shares of Occidental. This is on top of the $10 billion in preferred stock in Occidental (yielding 8%) Buffett's company received in 2019.
Having close to $13 billion invested in Occidental common stock is a pretty clear indication that Buffett and his closest investing confidants believe the spot price of oil will remain elevated or head even higher. Russia's ongoing war with Ukraine, along with multiple years of reduced capital investment by energy majors because of the COVID-19 pandemic, has led to tight oil supply worldwide. Anytime the supply of a major commodity is constrained, there's a good likelihood the price of said commodity will increase.
What's noteworthy about Occidental Petroleum compared to other integrated oil and gas operators is that it generates most of its revenue from its drilling operations. This is to say that its operating performance is considerably more sensitive to changes in the spot price of crude oil than other integrated energy companies. If the spot price of crude oil remains high, Occidental will disproportionately benefit from it.
Image source: Getty Images.
Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024
Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. But if I had to wager on which stock is likeliest to be bought by Warren Buffett in 2024, neither of these two companies would top the list.
Interestingly enough, the stock Warren Buffett is virtually guaranteed to buy in 2024 isn't going to be found on Berkshire Hathaway's quarterly 13Fs. Instead, you'll find evidence of these purchases toward the tail end of the company's quarterly operating results. That's right -- the company that's a practical lock to be bought by Buffett in 2024 is... Berkshire Hathaway.
Prior to July 17, 2018, Berkshire Hathaway had a share repurchase policy in place that only allowed for buybacks if Berkshire's stock fell to or below 120% of book value (i.e., no more than 20% above stated book value). At no point for well over a half-decade prior to this date did Berkshire Hathaway's stock reach this threshold. As a result, Buffett was never able to pull the trigger on any buybacks.
On July 17, 2018, Berkshire's board passed new measures that allowed its dynamic duo -- Warren Buffett and the late, great Charlie Munger -- to get off the proverbial bench and repurchase their company's stock more frequently. In order for buybacks to take place:
Berkshire Hathaway needed to have at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and
Warren Buffett and Charlie Munger needed to agree that Berkshire's stock was intrinsically cheap.
Admittedly, I'm not entirely certain who, if anyone, will step in and play the sidekick role to Warren Buffett when it comes to share repurchases moving forward. What I do know is that the Oracle of Omaha has overseen the repurchase of more than $72 billion worth of Berkshire Hathaway stock since July 2018. Further, Buffett has bought back his own company's stock for 21 consecutive quarters, through September 2023.
As of the end of the most recent quarter, Berkshire's cash position ballooned to an all-time record $157.2 billion. With little in the way of value tickling the fancy of Buffett, Weschler, or Combs, it's a virtual guarantee that at least some of this cash will be deployed to repurchase Berkshire's common stock in 2024.
To add, Berkshire Hathaway doesn't pay a dividend. The way Buffett regularly rewards his long-term shareholders is through buybacks. Reducing the number of outstanding shares over time should increase the ownership stakes of Berkshire's shareholders, much in the same way that Apple's buyback program has grown Berkshire's stake in the company.
Furthermore, reducing the outstanding share count of a company with steady or growing net income can increase earnings per share (EPS) over time. This helps Berkshire Hathaway become even more fundamentally attractive to value-seeking investors.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway 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 7, 2023
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. 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. | Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. As we prepare to close the curtain on 2023 in roughly two weeks, it's readily apparent that one highly regarded stock is a virtual lock to be purchased by Warren Buffett throughout 2024. Russia's ongoing war with Ukraine, along with multiple years of reduced capital investment by energy majors because of the COVID-19 pandemic, has led to tight oil supply worldwide. | Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. Prior to July 17, 2018, Berkshire Hathaway had a share repurchase policy in place that only allowed for buybacks if Berkshire's stock fell to or below 120% of book value (i.e., no more than 20% above stated book value). | Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. In order for buybacks to take place: Berkshire Hathaway needed to have at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and Warren Buffett and Charlie Munger needed to agree that Berkshire's stock was intrinsically cheap. | Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. Should you invest $1,000 in Berkshire Hathaway right now? |
||
12101.0 | 2023-12-13 00:00:00 UTC | MSFT vs. AAPL: Which Stock Has More AI Upside Potential? | AAPL | https://www.nasdaq.com/articles/msft-vs.-aapl%3A-which-stock-has-more-ai-upside-potential | Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Indeed, Microsoft and Apple are two tech titans that prove there are some firms out there that can keep on growing into old age. To do so, continuous reinvention by means of disruptive innovation and smart business practices have been key areas.
As we move into 2024, the main question is which tech behemoth has more AI upside. Indeed, Microsoft was/is the AI stock to own for 2023, with its exposure to ChatGPT-owner OpenAI and its new AI offerings that are released frequently, enough to keep rivals on their toes.
Though Apple has been busy with AI, incorporating it into new features (the smarter AutoCorrect in the latest iOS update), it's unknown when the company will have its own generative AI or large language model (LLM) to stack up with the growing list of competing offerings, including ChatGPT, Claude, and more.
In any case, I remain bullish on both Magnificent Seven companies heading into 2024, a year that's sure to be full of AI surprises.
The Pace of Innovation at Microsoft Has Got to Be Intimidating for AI Rivals
In recent months, Microsoft has been busy rolling out its Copilot AI across its software. Thus far, Wall Street has been absolutely loving it, rewarding shares of MSFT with enough gains to hit a new all-time high recently, just shy of $385 per share.
More recently, Microsoft stated its new AI model named Phi-2 is more capable than that of its rivals, specifically in logic-related tasks like programming and mathematics. Indeed, it seems like there's some new AI model launching every couple of weeks that's able to put the existing ones to shame. That may very well be the pace of innovation we'll come to expect in the new year as firms look to advance in what can only be described as an AI war.
Microsoft is a $2.8 trillion enterprise behemoth that is moving remarkably fast with AI -- but in a way (hopefully) as to not break things.
Meanwhile, Apple has been content sitting mostly on the sidelines when it comes to its latest and greatest AI technologies. Just because it's tighter-lipped doesn't mean it's "behind" in the AI race. For now, it's hard to tell what Apple has in store for 2024 on the AI front as it looks to launch its very first spatial computer in the Apple Vision Pro. It's hard to ignore the buzz surrounding potential AI endeavors going on behind the scenes, though.
Is MSFT Stock a Buy, According to Analysts?
On TipRanks, MSFT stock comes in as a Strong Buy. Out of 37 analyst ratings, there are 36 Buys and one Hold recommendation. The average MSFT stock price target is $421.79, implying upside potential of 15.3%. Analyst price targets range from a low of $375.00 per share to a high of $475.00 per share.
Is Apple Ready to Make an AI Splash in 2024? Analysts' Opinions Vary
Apple analyst Min-Chi Kuo, a man who's been spot on with past Apple predictions, sees the iPhone maker spending $4.75 billion on AI servers in 2024. That's a big bet on the future of AI. That said, Kuo doesn't believe Apple will launch a generative AI model in the new year.
Morgan Stanley (NYSE:MS) views Apple as one of the firms that are poised to benefit greatly from AI once it goes mainstream, going as far as to call it "an AI enabler." The investment firm sees Apple becoming one of the winners in the realm of "edge AI" as soon as early 2024.
What exactly is edge AI? Imagine having powerful AI models on your own device (think your iPhone) that don't require you to rely so heavily on the cloud. Profoundly powerful machine learning (ML) algorithms may very well be in the palm of your hand rather than on some remote server. Indeed, the concept is quite profound and could mark the next step in the world of AI.
Only time will tell how the next chapter of the AI story unfolds. Regardless, it's an exciting subsegment of AI that could put Apple at or around the front of the AI race at some point in the future. Whether the move is in 2024 or 2030, I believe Morgan Stanley is right on the money when it says Apple is one of the bigger beneficiaries of AI.
Indeed, it's hard to tell exactly where Apple stands with its AI strategy. As always, we'll probably have to wait until CEO Tim Cook is ready to announce before we can know with 100% certainty what the Cupertino-based giant is really up to and where it stands on the front of various technologies.
Is AAPL Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Strong Buy. Out of 33 analyst ratings, there are 25 Buys and eight Hold recommendations. The average AAPL stock price target is $203.70, implying upside potential of 2.8%. Analyst price targets range from a low of $150.00 per share to a high of $240.00 per share.
Bottom Line: Apple Stock Could Have More AI Upside From Here
I think Microsoft stock's upside may be limited as it's pretty common knowledge that it's an AI leader at this juncture. The stock goes for 36.3 times trailing price-to-earnings (P/E), notably above Apple's 31.8 times trailing P/E multiple. If edge AI is the next stepping stone, I'd not be shocked if Apple ends up closing the valuation gap with its long-time rival.
For now, Wall Street loves both companies but expects a bit more upside from Microsoft (15.3% vs. 2.8%). Nonetheless, expect average price targets to shift drastically as new developments arise from both firms on the front of AI.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy. | Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). The average AAPL stock price target is $203.70, implying upside potential of 2.8%. Is AAPL Stock a Buy, According to Analysts? | Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy. | Is AAPL Stock a Buy, According to Analysts? Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). On TipRanks, AAPL stock comes in as a Strong Buy. |
||
12102.0 | 2023-12-12 00:00:00 UTC | 5 Best-Performing Technology ETFs of 2023 | AAPL | https://www.nasdaq.com/articles/5-best-performing-technology-etfs-of-2023 | Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally. Additionally, bets that the Fed’s aggressive interest rate hiking campaign might be nearing an end powered the rally in the sector in recent weeks.
Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Meanwhile, bitcoin, the world's largest cryptocurrency, soared more than 150% this year and surged past the $42,000 mark for the first time since April 2022 before retreating to near 40,000 levels. The massive rally came on the back of broad Enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs (read: Bitcoin Reaches $42,000: 5 ETFs More Than Double in 2023).
Given the broad-based rally across sectors, we have highlighted five best-performing ETFs from different industries that have made technology the best performer. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
More Rally Ahead?
Finally, the Fed, in the latest FOMC meeting, hinted at three rate cuts for the next year while keeping the rates steady for this year. The central bank will cut rates by 75 bps next year, up from the previous forecast of two rate cuts in 2024. Markets are now pricing in a nearly 60% chance that the Fed will begin to cut rates in its March meeting, up from 40% the day prior, per data from the CME Group.
As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The reductions in interest rates, coupled with the ongoing rise of AI, will act as a major tailwind for the next year. Higher spending across the software, semiconductors, and digital media consumer sectors will provide a further boost to the sector.
The expansion of AI applications holds the promise of ushering in fresh opportunities for growth within the sector. The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally.
Further, the tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 191.8%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket. It charges 50 bps in annual fees and has accumulated $64.3 million in its asset base.
Valkyrie Bitcoin Miners ETF (WGMI) – Up 190.8%
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 22 stocks in its basket, with a double-digit concentration on the top four firms. It has amassed $33 million in its asset base and charges 75 bps in annual fees.
ARK Next Generation Internet ETF (ARKW) – Up 84.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 35 stocks in its basket. ARK Next Generation Internet ETF has amassed $1.6 billion in its asset base and charges 88 bps in annual fees (read: 5 Tech ETFs That Outperformed XLK in the Past Week).
VanEck Vectors Semiconductor ETF (SMH) – Up 65.7%
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the overall performance of companies involved in semiconductor production and equipment. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket. SMH has managed assets worth $10.9 billion and charges 35 bps in annual fees and expenses. It has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 64.8%
SPDR NYSE Technology ETF provides exposure to 35 leading U.S.-listed technology-related companies by tracking the NYSE Technology Index. Semiconductors take the largest share at 26%, while systems software, application software, application Software and broadline retail round off the next four spots. SPDR NYSE Technology ETF has amassed $625.1 million and charges 35 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
SPDR NYSE Technology ETF (XNTK): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
Valkyrie Bitcoin Miners ETF (WGMI): 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. | Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally. | Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK. | Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK. | Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK. |
||
12103.0 | 2023-12-12 00:00:00 UTC | Jabil's quarterly profit beats estimates as cost cutting measures takeoff | AAPL | https://www.nasdaq.com/articles/jabils-quarterly-profit-beats-estimates-as-cost-cutting-measures-takeoff | Updates share movement in paragraph 2
Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy.
Shares of the St. Petersburg, Florida-based company rose 5.3% in early morning trade.
The company said in October it plans to reduce its workforce across selling, general and administrative cost bases.
Jabil on Thursday said its second-quarter operating income is likely to see an impact of between $75 million and $100 million impact due to restructuring, severance and related charges.
On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data.
"We experienced a broad-based softening in demand during the final stretch of our first quarter," said CEO Kenny Wilson.
"Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added.
First-quarter revenue of $8.4 billion was also largely in-line with estimates of $8.35 billion.
The company's consumer, digital print, retail and point-on-sale markets have been facing a supply glut as end-demand remains weak. As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer.
However, Jabil in September said it expects growth in sectors such as clean energy infrastructure and artificial intelligence data centers.
Global transition to EVs is also expected to drive over 20% growth in automotive and transport segment revenue in fiscal 2024.
The company's second-quarter revenue and core profit forecasts were also largely in line with analysts' expectations.
Jabil joins the S&P 500 index .SPX on Dec. 18 after markets open.
(Reporting by Priyanka G; Editing by Shailesh Kuber)
(([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. | As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. The company's consumer, digital print, retail and point-on-sale markets have been facing a supply glut as end-demand remains weak. | As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. "Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added. | As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data. | As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data. "Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added. |
||
12104.0 | 2023-12-12 00:00:00 UTC | Market Misfits: 3 Beaten-Down Stocks Poised for a 2024 Comeback | AAPL | https://www.nasdaq.com/articles/market-misfits%3A-3-beaten-down-stocks-poised-for-a-2024-comeback | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market is closing in on its all-time high. The S&P 500 is up over 20% in 2023, with less than three weeks to go in the year. Yet those gains were not distributed equally. Three beaten-down stock picks are ready for a rebound in 2024.
For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). These were the so-called Magnificent 7. Without them, the popular index would be flat.
Because the S&P 500 is a weighted index, these stocks’ heavy footprint causes an undue influence on the whole. Several companies were even beaten down this year for good or ill. Whatever the reason for their fall, they remain good businesses with excellent long-term growth prospects.
Dollar General (DG)
Source: Jonathan Weiss / Shutterstock.com
Deep discount chain Dollar General (NYSE:DG) should be in its prime. A sagging economy weighed down by inflation and high interest rates ought to have consumers flocking to its stores to save money. Instead, they’ve avoided the dollar store and headed to Walmart (NYSE:WMT).
Dollar General’s problems come from misreading consumer demand. When people were flush with government stimulus checks from the pandemic, they bought up consumables left and right. The deep discounter apparently thought that was the new norm and overstocked on such goods. Yet today’s high cost of living has consumers shopping primarily for basics and everyday essentials, so they’ve turned to Walmart.
While the dollar store has held the line on pricing, it hurt profit margins. That’s not a bad strategy to lure customers in, but it exacerbated the problem of having the wrong products on its shelves. It suffers from falling sales and narrowing margins. Today, Dollar General is correcting course. It shed the excess inventory and is focusing on essential goods. It also brought back former CEO Todd Vasos, who oversaw Dollar General’s decade-long rise, to oversee the reversal.
Although the retailer is nominally a dollar store, most products it sells are above that price point. That’s okay, too, because it allows the retailer to offer customers a broader selection of higher-quality products. Having realized the problem and taken corrective action, expect Dollar General to come roaring back next year.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
Oil prices are down from their pandemic highs even though what you’re paying at the pump is still historically high. But that’s helping depress Occidental Petroleum‘s (NYSE:OXY) stock, down almost 12% this year.
It’s also doing itself no favors by jumping on the industry consolidation trend underway. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) both announced multi-billion-dollar acquisitions in recent weeks, and now Occidental is spending $12 billion on privately held CrownRock. It will make Occidental Petroleum the second biggest producer in the Permian basin behind Exxon.
But Occidental is taking on debt to fund its all-cash deal. It already had $18.5 billion in long-term debt due to its previous acquisition of Anadarko Petroleum and now will add another $9.1 billion worth. It’s also issuing $1.7 billion in stock. The market is concerned because the oil stock’s cash position has been whittled away, and at the end of September, Occidental had $611 million in the bank.
Still, Occidental says the deal will increase free cash flow to $1 billion in the first year of the transaction if oil is at $70 a barrel. West Texas Intermediate currently trades just under that threshold. Warren Buffett took a 25% stake in Occidental stock because of its position in the Permian. This deal only solidifies it. Look for the market to eventually come around to the oil producer’s thinking and send its shares higher accordingly.
Alibaba (BABA)
Source: Shutterstock
Chinese online retailer Alibaba (NYSE:BABA) went in the opposite direction of the S&P 500. Its shares are down almost 20% this year, though it’s been a roller coaster ride. The latest dip in price that began in August resulted from new U.S. export control regulations. It limits China’s access to U.S. chip technology, particularly in artificial intelligence (AI) and supercomputing. Controls on computer equipment are also imposed.
Although Alibaba had planned to split into six separate companies, the export controls put the separation of its cloud services on hold. Alibaba said it will retain the business because “these new restrictions may materially and adversely affect Cloud Intelligence Group’s ability to offer products and services and perform under existing contracts, thereby negatively affecting our results of operations and financial condition.”
Alibaba is still growing, albeit at slower rates, and is still incredibly profitable. The crackdown on tech companies like the e-commerce giant by Beijing is largely over. And though China no longer appears on the verge of overtaking the U.S. economy as the world’s largest, it can still expand considerably, a bullish catalyst for the e-tailer.
With the decline in BABA stock, a downdraft in valuation followed. Alibaba trades at less than eight times next year’s earnings when Wall Street forecasts it will grow profits at a 12% clip long-term. That’s orders of magnitude larger than it grew over the past five years. That makes Alibaba a cheap, beaten-down stock primed for growth next year and beyond.
On the date of publication, Rich Duprey held a LONG position in XOM and CVX stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Market Misfits: 3 Beaten-Down Stocks Poised for a 2024 Comeback appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Yet today’s high cost of living has consumers shopping primarily for basics and everyday essentials, so they’ve turned to Walmart. And though China no longer appears on the verge of overtaking the U.S. economy as the world’s largest, it can still expand considerably, a bullish catalyst for the e-tailer. | For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. Dollar General (DG) Source: Jonathan Weiss / Shutterstock.com Deep discount chain Dollar General (NYSE:DG) should be in its prime. | For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. But that’s helping depress Occidental Petroleum‘s (NYSE:OXY) stock, down almost 12% this year. | For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. That makes Alibaba a cheap, beaten-down stock primed for growth next year and beyond. |
||
12105.0 | 2023-12-12 00:00:00 UTC | Intel says dozens of PC makers are using its new AI-enabled chip | AAPL | https://www.nasdaq.com/articles/intel-says-dozens-of-pc-makers-are-using-its-new-ai-enabled-chip | By Stephen Nellis
Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots.
At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX.
Intel shares rose as much as 3.6% after the news.
Intel's central processor units (CPUs) have long served as the brains of most personal computers. But the new chip that went by the code name "Meteor Lake" is Intel's first that will also contain what is called an neural processing unit (NPU), a section of the chip dedicated to handling artificial intelligence tasks.
Intel's pitch to consumers and businesses comes as it is fighting its way out of a post-pandemic PC slump where buyers who upgraded to work from home in 2020 have seen little reason to buy new equipment.
Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers.
"That will be the star of the show in this coming year," Gelsinger said of AI on PCs. "You're unleashing this power for every person, every use case, every location in the future."
During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift.
Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market.
(Reporting by Stephen Nellis in San Francisco; Editing by Jamie Freed)
(([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 Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX. During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift. | Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers. During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market. | By Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market. | By Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market. |
||
12106.0 | 2023-12-12 00:00:00 UTC | 2 'Strong Buy' Warren Buffett Stocks to Invest In Now | AAPL | https://www.nasdaq.com/articles/2-strong-buy-warren-buffett-stocks-to-invest-in-now | Warren Buffett has a long history of successful investing. The legendary investor is known for his adherence to value investing principles, which involve looking for companies with solid fundamentals, competitive advantages, and wide economic moats.
These companies are often leaders in their industries, which reduces the relative risk associated with the investment. Moreover, a few of them also offer solid dividends. Therefore, adopting a strategy of investing in stocks within Berkshire Hathaway's (BRK.A) (BRK.B) portfolio, as curated by Buffett and his team, could prove to be a prudent approach for long-term wealth creation.
While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Let's take a look.
Coca-Cola
Coca-Cola (KO) stock is Buffett’s fourth largest holding, as per the latest 13F filing. The stock accounts for 7.1% of Berkshire’s holdings. Coca-Cola benefits from strong underlying demand and the company’s solid execution. What stands out is the company’s pricing power that supports organic growth and cushions its earnings.
www.barchart.com
Despite macro headwinds, Coca-Cola achieved an impressive 11% organic revenue growth in the third quarter. This was driven by positive volume growth and higher pricing. The beverage giant expanded volume and value share in both at-home and away-from-home channels during the quarter. Additionally, its comparable gross margin increased by approximately 130 basis points for the period, reflecting higher organic sales and benefits from bottler refranchising.
Encouragingly, Coca-Cola raised its fiscal 2023 revenue and earnings guidance, projecting organic revenue growth of 10-11%, up from the earlier guidance of 8-9%. The company plans to invest further in marketing and digital initiatives to enhance the relevance of its brands to consumers. It is also prioritizing its eB2B (electronic business-to-business) platforms for better product customization, pricing optimization, and inventory management.
The company’s strong business momentum and robust balance sheet provide financial flexibility for continued reinvestment in the business and returning capital to shareholders. As a dividend king, Coca-Cola has increased its annual dividend for 61 consecutive years. The combination of steady growth, consistent dividend increases, and share buybacks positions Coca-Cola as an attractive long-term investment.
Analysts seem to concur, with the majority recommending a “Strong Buy" on KO. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels.
www.barchart.com
Amazon
Amazon.com (AMZN) stock constitutes a small fraction of Buffet’s portfolio. However, Wall Street is quite optimistic about this e-commerce and cloud computing giant.
Despite facing macroeconomic challenges, Amazon's stock has racked up substantial gains this year, primarily propelled by the strength of its cloud computing arm, Amazon Web Services (AWS). Moreover, its focus on improving profitability, investments in artificial intelligence (AI), and sustained momentum in the advertising business further supported the rally in its share price.
www.barchart.com
AWS stands out as the key catalyst behind Amazon’s revenue and profitability. The segment’s revenue reached $23.1 billion in the third quarter, reflecting a 12% year-over-year increase. The ongoing migration of new workloads to the cloud contributes to the vertical’s growth. Its strong customer pipeline, improving cost structure, and AI-driven capabilities are expected to bolster AWS’ financial performance.
As for the advertising business, the segment holds significant potential for the company. The advertising division has consistently demonstrated over 20% revenue growth in recent quarters, and has been the key driver for Amazon’s free cash flow. In the third quarter, advertising revenues surged by over 25% to $12.1 billion. Moreover, the segment’s top line also improved sequentially.
Overall, the combined strength of Amazon’s cloud and advertising businesses, its leadership in the e-commerce sector, and a focus on improving profitability through cost reduction are expected to provide a solid foundation for the company’s financial performance.
Analysts echo this sentiment with a predominantly bullish outlook on the stock. Among the 40 analysts covering Amazon, 36 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and one advises a "Hold." The average price target among analysts is $174.03, indicating approximately 16.7% upside potential from current levels.
www.barchart.com
On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Therefore, adopting a strategy of investing in stocks within Berkshire Hathaway's (BRK.A) (BRK.B) portfolio, as curated by Buffett and his team, could prove to be a prudent approach for long-term wealth creation. Additionally, its comparable gross margin increased by approximately 130 basis points for the period, reflecting higher organic sales and benefits from bottler refranchising. | While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels. Among the 40 analysts covering Amazon, 36 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and one advises a "Hold." | While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels. Overall, the combined strength of Amazon’s cloud and advertising businesses, its leadership in the e-commerce sector, and a focus on improving profitability through cost reduction are expected to provide a solid foundation for the company’s financial performance. | While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. This was driven by positive volume growth and higher pricing. As for the advertising business, the segment holds significant potential for the company. |
||
12107.0 | 2023-12-12 00:00:00 UTC | US STOCKS-Wall St rises on Fed's rate-cut signal; Apple scales record high | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-feds-rate-cut-signal-apple-scales-record-high | By Shristi Achar A and Johann M Cherian
Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view".
The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024.
The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday.
"The fact that we're not at a point where rates are being lowered because of some economic weakness, (but) rather the Fed re-calibrating its policy - markets seem to like that message," said George Mateyo, chief investment officer at Key Private Bank.
Money markets now see an 83.7% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while almost fully pricing in another cut in May, according to CME's FedWatch tool.
Yield on the benchmark 10-year Treasury note US10YT=RR slipped further, to 3.9152%, while the dollar =USD tumbled to fresh four-month lows. US/USD/
Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%.
Seven of the S&P 500's 11 sectors advanced, led by a 2.4% rise in real estate stocks .SPLRCR, while the small-caps Russell 2000 index .RUT surged 2.5% to hit its strongest level since early February.
At 11:26 a.m. ET, the Dow Jones Industrial Average .DJI was up 68.34 points, or 0.18%, at 37,158.58, the S&P 500 .SPX was up 10.97 points, or 0.23%, at 4,718.06, and the Nasdaq Composite .IXIC was up 18.05 points, or 0.12%, at 14,752.02.
AdobeADBE.O shed 5.5% after the Photoshop maker forecast annual and quarterly revenue below estimates.
ModernaMRNA.Ojumped 11.7% after an experimental messenger RNA cancer vaccine it co-developed with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda drug.
Occidental PetroleumOXY.N added 3.4% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
Foot Locker FL.N rose 7.9% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral".
Advancing issues outnumbered decliners by a 5.21-to-1 ratio on the NYSE and by a 2.80-to-1 ratio on the Nasdaq.
The S&P index recorded 87 new 52-week highs and no new lows, while the Nasdaq recorded 235 new highs and 40 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
(([email protected] https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday. | US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday. | US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The S&P index recorded 87 new 52-week highs and no new lows, while the Nasdaq recorded 235 new highs and 40 new lows. | US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. |
||
12108.0 | 2023-12-12 00:00:00 UTC | 5 Winning Stocks of 2023 as Dow Jones Hits New Record | AAPL | https://www.nasdaq.com/articles/5-winning-stocks-of-2023-as-dow-jones-hits-new-record | The Dow Jones Industrial Average hit a new record, surpassing 37,000 for the first time after the Fed signaled the possibility of rate cuts next year. The blue-chip index has displayed an astounding rally in the past month, outperforming the other indices. The rally broadened out to other sectors beyond the “Magnificent Seven” stocks.
While most of the stocks in the index have performed remarkably this year, we have highlighted five of them that have been leading the way higher. These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA.
The Fed, as expected, kept interest rates steady at a 22-year high in the FOMC meeting ended Dec 13. In a major shift, the central bank signaled three rate cuts for the next year, with the federal funds rate falling to a range of 4.4-4.9%, down from the current 5.25% to 5.50%. This suggests that the Fed will cut rates by a total of 0.75% next year, indicating that the historic rate-hiking campaign might be ending. It had previously forecast two rate cuts for 2024. Following the meeting, markets are pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from the CME Group.
Being cyclical in nature, the blue-chip index outperforms when economic growth improves. Americans are now feeling more confident about the economy than they did over the past few months. This is especially true as consumer sentiment, as indicated by the preliminary reading on the University of Michigan preliminary index, rebounded sharply in early December and broke the streak of four consecutive months of decline.
Cyclical stocks, bank stocks and small-cap stocks have all shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities.
Best-Performing Stocks
Salesforce is the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has surged 94.1% this year.
Salesforce has an expected earnings growth rate of 16% for the fiscal year (ending January 2025). It has a Zacks Rank #3 (Hold) and a Growth Score of B.
Intel, the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. INTC jumped 68.6% this year.
Intel is expected to see earnings growth of 98.5% for 2024 and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% share of operating systems. MSFT has risen 56.1% this year.
Microsoft is expected to see earnings growth of 13.5% in the fiscal year ending June 2024. It has a Zacks Rank #3 and a solid Growth Score of A.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products and HomePod. Shares of AAPL are up more than 52% this year.
Apple’s earnings are expected to grow 7% for the fiscal year (ending September 2024). The stock has a Zacks Rank #3 and has a Momentum Score of B.
Boeing has been the premier manufacturer of commercial jetliners for decades. The company’s premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 157.6% for 2024.
Boeing has risen 31.7% so far this year. The stock has a Zacks Rank #3 and a Growth Score of A.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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
The Boeing Company (BA) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : 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. | These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. | These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of AAPL are up more than 52% this year. | Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. | These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. |
||
12109.0 | 2023-12-12 00:00:00 UTC | Where Will Apple Stock Be in 5 Years? | AAPL | https://www.nasdaq.com/articles/where-will-apple-stock-be-in-5-years | You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. And for good reason. This is the company behind the world's single most popular smartphone, after all, and it garners fierce loyalty from users thanks to the world's most popular ecosystem of apps and other digital content.
As veteran investors can attest, though, you shouldn't buy stocks based on where their underlying companies were, or even are. You own them for where they're going.
This raises two important questions about Apple and its stock: Where will the company be five years from now, and what might that mean for Apple shares?
Spoiler alert: Current Apple investors will like the outlook but probably won't love it.
Slowing down where it hurts the most
Come 2028, Apple will still be a technology powerhouse. The company's highest-growth days, however, are largely in the past.
Nowhere is this more clearly represented than with a visualization of the company's historical iPhone revenue and iPhone deliveries. Even before the COVID-19 pandemic took hold in 2020, iPhone sales were stagnant, even teetering on the verge of measurable decline. The pandemic itself actually helped spur a wave of iPhone purchases, but that swell wasn't meant to last. Both iPhone revenue as well as deliveries are easing back to pre-pandemic levels, sinking more than they're growing.
iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC. Chart by author. Revenue data is in billions. Unit-delivery data is in millions.
It matters simply because the iPhone still accounts for around half of Apple's revenue. Just for the record, demand for Apple's other products has also been lackluster since peaking in the middle of last year.
Data source: Apple Inc. Chart by author. Figures are in billions.
Some of this slowdown could be attributed to economic malaise and inflation. Much of it, however, may simply reflect market saturation. The company has confirmed there are now more than 2 billion Apple-made devices (mostly iPhones) currently in use. That's obviously not the whole world, but it is a sizable chunk of the total addressable market.
People are holding onto their existing Apple-made devices for longer periods of time, crimping demand for upgrade purchases. Analysts with brokerage Morgan Stanley estimate the average iPhone is now a record-breaking 4.4 years old.
Here's the good news: Morgan Stanley also believes the likely debut of the iPhone 16 next year will unleash a wave of upgrade buying that's been put on hold for a while now. Even so, such upgrade cycles haven't exactly been game-changers for Apple. The bigger-picture, longer-term revenue trend is still mostly moving sideways rather than moving higher.
Services to the rescue ... somewhat
All is not lost. While product-revenue growth is flattening out, Apple's services revenue (sales of apps and digital content) continues to grow.
Perhaps recognizing there are only so many iPhones that can be sold in any given year -- just as there are only so many people who will ever want to own one -- the company began taking its app store more seriously back in 2017. And in retrospect, it was a brilliant move. While its services arm is Apple's distant second-biggest business in terms of revenue, it's still an incredibly profitable one. Around 70% of its services revenue is turned into gross profit, and services alone make up roughly one-third of Apple's gross profits.
Data source: Apple Inc. Chart by author. Revenue and gross profit figures are in billions.
The graphic above tells us something else about Apple's digital content business too. That is, despite last year's lull, this arm is still growing, reaching a record-breaking $22.3 billion worth of revenue during the three months ending in September.
We don't know where Apple's services business-revenue ceiling is. What we do know is the annualized revenue figure of $100 billion is being tossed around rather regularly now. That's roughly $15 billion more than its current annualized revenue run rate and makes sense as a target.
Beyond that milestone, however, the growth picture for Apple's services arm turns murky.
In the same sense that there's an absolute limit to the number of iPhone users and the number of iPhones that can be sold in any given year, there's also a limit to how many apps and how much digital content even the heaviest users of Apple's products will be willing to pay for. The planet's 2 billion-plus iOS users are currently spending an average of around $44 per year on services that make more use of their Apple-made devices. It's tough to see them spending a great deal more on this front than they already do.
Connecting the dots
So what does it all mean looking forward?
Again, nobody's got a crystal ball. What's known is where Apple stands right now, and analysts have a good feel for the trends behind the company's two biggest businesses -- the iPhone and services.
It's conceivable Apple's iPhone arm isn't going to be any bigger in five years than it is right now. It's also likely that Apple's services arm will become a $100-billion-a-year business by 2028, but it's difficult to see it getting much bigger than that. Sales of Apple's other products, like iPads and Macs, may grow a little during this time frame, although even that's a tough expectation to get behind given their lackluster results of late.
To the extent a number helps paint the picture, Apple's top line could easily be less than $500 billion in 2028. That's 30% more than the recently ended fiscal year's revenue, but it's a growth rate that's also very un-Apple-like.
The analyst community is slightly more bullish (although only slightly), calling for 2028 sales of around $550 billion. Even then, it's still not exactly a thrilling growth outlook. Earnings-growth projections don't exactly help the bullish argument much either.
Data source: StockAnalysis.com. Chart by author. Revenue figures are in billions.
As for the stock, here's where current and prospective Apple investors will likely catch a break; this ticker tends to move in step with the company's growth no matter how fast or slow that growth is. Presuming the sales and earnings-based pricing paradigm remains in place, the stock's current price near $200 could be closer to $300 five years from now.
The one potential game-changer is if Apple comes up with a new and completely unexpected must-have product that could shake up these expectations for the better. There's no such product even on the radar, though. So don't get your hopes up in that regard.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. Here's the good news: Morgan Stanley also believes the likely debut of the iPhone 16 next year will unleash a wave of upgrade buying that's been put on hold for a while now. The planet's 2 billion-plus iOS users are currently spending an average of around $44 per year on services that make more use of their Apple-made devices. | You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC. Around 70% of its services revenue is turned into gross profit, and services alone make up roughly one-third of Apple's gross profits. | You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. This raises two important questions about Apple and its stock: Where will the company be five years from now, and what might that mean for Apple shares? iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC. | You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. Revenue data is in billions. As for the stock, here's where current and prospective Apple investors will likely catch a break; this ticker tends to move in step with the company's growth no matter how fast or slow that growth is. |
||
12110.0 | 2023-12-12 00:00:00 UTC | EU asks Apple, Google to clarify app store risk management | AAPL | https://www.nasdaq.com/articles/eu-asks-apple-google-to-clarify-app-store-risk-management | Adds more detail, background
PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA).
"The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement.
The two firms were given a Jan. 15 deadline to reply.
They are part of a group of over a dozen of the world's biggest tech companies facing unprecedented legal scrutiny since the DSA came into force this year, including sweeping new obligations to tackle illegal content and online security risks.
The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings.
(Reporting by Bart Meijer, Tassilo Hummel)
(([email protected] ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). They are part of a group of over a dozen of the world's biggest tech companies facing unprecedented legal scrutiny since the DSA came into force this year, including sweeping new obligations to tackle illegal content and online security risks. The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings. | Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). "The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement. The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings. | Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). The two firms were given a Jan. 15 deadline to reply. (Reporting by Bart Meijer, Tassilo Hummel) (([email protected] ; Twitter handle: @tassilo_hummel;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). "The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement. The two firms were given a Jan. 15 deadline to reply. |
||
12111.0 | 2023-12-12 00:00:00 UTC | Zacks Investment Ideas feature highlights: Apple | AAPL | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-1 | For Immediate Release
Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL.
Apple Stock Nears All-Time High: Is the Tech Giant Too Extended?
Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn't hurt either.
Following a greater than 50% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Buying at New All-Time Highs
Purchasing stocks at new all-time highs following a bear market has proven to be successful in the past. It's the market's way of telling us that higher prices are on the horizon. And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there's plenty of reasons to suspect that the momentum can continue.
Despite the technical progress this year, most professional fund managers (along with individual investors) were underweight stocks, missing the majority of the rally. The lack of respect for the market's recovery aided the bullish move off the 2022 bear market lows.
It's normal to expect that the rally won't continue, but history tells us otherwise. The S&P 500 is less than 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
The Business of Apple
Apple is engaged in the designing, manufacturing, and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple's well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple's business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn't enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefited from the AI theme this year.
Apple Stock – The Zacks Rundown
Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. Because it is ranked in the top half of all industries, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 50% return.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Apple has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal fourth-quarter earnings back in November of $1.46/share, beating the $1.39 Zacks Consensus Estimate by 5.04%. Apple has delivered a trailing four-quarter average earnings surprise of 3.47%.
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see earnings grow 7% in the current fiscal year on revenues of $393.4 billion. Given Apple's history of beating estimates, it wouldn't be too surprising if these figures ended up being a bit light.
What to Do Now
Buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Apple appears to be breaking out of a multi-month consolidation pattern, bolstering the bullish case.
The market is telling us to expect the unexpected. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock inches closer to a new all-time high.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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. | For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. | A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock. | For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. | AAPL is currently a Zacks Rank #3 (Hold) stock. For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. |
||
12112.0 | 2023-12-12 00:00:00 UTC | Bob Iger Is Running Out of Time to Save Disney Stock | AAPL | https://www.nasdaq.com/articles/bob-iger-is-running-out-of-time-to-save-disney-stock | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Walt Disney Co. (NYSE:DIS) stock actually represents three companies, each with unique problems and opportunities. There’s the entertainment division, the ESPN division, and the parks division, which must maintain a pristine reputation to deliver long-term profits.
In the long term, this can be managed, but CEO Bob Iger looks like he’s out of time. Short-term activists demand a profit now, and if you buy the stock today, you’re buying what they’re selling.
The Activist View on DIS Stock
Activists Ancora and Trian, who have launched a proxy fight against the board, don’t care where DIS stock is 5 or 10 years from now. They want to make money right away.
The addition of ValueAct to the challengers’ team is already giving them a small victory. Since Trian said it had a $2.5 billion stake, and began pushing Nelson Peltz toward a board seat, Disney stock is up almost 10%.
Disney responded Nov. 30 by bringing back its 30 cent/share dividend. That’s unlikely to satisfy the activists.
What would cheer the activists is the sale of Disney assets, maybe the whole company. In the present business environment, Disney looks like a set of mismatched parts.
Las Vegas gamblers and Saudi oil tycoons are taking over sports. That makes ESPN a bad fit for a family entertainment operation.
The ABC broadcast network is losing value daily, and Byron Allen has offered $10 billion for it. A higher price, after a bidding war, might be enough to buy back the activists’ stake. It would also give Disney a better growth profile.
If Disney can’t generate bigger profits right away, the analysts aren’t averse to a complete breakup. Spin-out ESPN and its sports betting. Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. Whether it works or not is less important than the cash and optimism such moves would bring to the analysts’ bottom lines.
The Disney View
Iger’s view is that many of today’s problems will fix themselves.
Both broadcast and cable are sinking. Ads aren’t as “addressable” as on a streaming service, which can target individuals and small groups, not just broad demographics.
So, Iger thinks, move the content to streaming. By cutting budgets and raising prices, Disney feels streaming profits become inevitable. Buying the rest of Hulu from Comcast (NASDAQ:CMCSA) adds even more addressable ad inventory.
Problems at the U.S. theme parks are also temporary. That’s one reason TV’s Jim Cramer wants investors to buy Disney now. Disney is still a big time global brand. Its parks in Hong Kong and Shanghai saved the most recent quarter. Better results from the U.S. parks could take earnings much higher.
Bulls also like the potential of ESPN. Penn Entertainment’s (NASDAQ:PENN) online betting platform, with ESPN’s name on it, has lower customer acquisition costs than competitors. This could give Disney 20% of a growing market.
The Bottom Line on DIS Stock
Bob Iger still has a great hand to play.
The streaming unit should be competitive with Netflix (NASDAQ:NFLX). That stock is up 53% in 2023 and is worth $30 billion than all of Disney right now. A growing U.S. economy bodes well for the parks. ESPN is a worthwhile asset no matter who owns it.
The question is whether Iger will get a chance to play that hand. Trian doesn’t want to wait the year or two it will take to prove the value of Disney assets. The rhetoric around the proxy fight is growing personal. That’s never a good sign.
You can buy Disney here but be wary. Big egos can turn big potential into small beer.
As of this writing, Dana Blankenhorn had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Bob Iger Is Running Out of Time to Save Disney Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. | Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. There’s the entertainment division, the ESPN division, and the parks division, which must maintain a pristine reputation to deliver long-term profits. | Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Walt Disney Co. (NYSE:DIS) stock actually represents three companies, each with unique problems and opportunities. | Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. Short-term activists demand a profit now, and if you buy the stock today, you’re buying what they’re selling. |
||
12113.0 | 2023-12-12 00:00:00 UTC | Berkshire Hathaway buys Occidental Petroleum shares worth about $588.7 mln | AAPL | https://www.nasdaq.com/articles/berkshire-hathaway-buys-occidental-petroleum-shares-worth-about-%24588.7-mln | Adds background in paragraphs 2-6
Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday.
The purchases bring Berkshire's stake in Occidental to about 27%. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece.
The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum. If exercised, the warrants would bring Berkshire's total ownership to 33%.
Occidental closed at $57.22 on Wednesday.
(Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
(([email protected]; @journoanirudh on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum. (Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema) (([email protected]; @journoanirudh on Twitter;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The purchases bring Berkshire's stake in Occidental to about 27%. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece. | Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece. The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum. | Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The purchases bring Berkshire's stake in Occidental to about 27%. (Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema) (([email protected]; @journoanirudh on Twitter;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
||
12114.0 | 2023-12-12 00:00:00 UTC | Got $1,000? 4 Stocks to Buy Now While They're on Sale. | AAPL | https://www.nasdaq.com/articles/got-%241000-4-stocks-to-buy-now-while-theyre-on-sale. | Even though stocks have rallied this year, many still trade at bargain prices. In fact, even some of this year's gainers offer you plenty of bang for your buck today -- like track records of growth and bright long-term earnings prospects. These players often are high-quality companies that have long been at the top of investors' "buy lists."
Here's even more good news. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. Let's take a closer look at four exciting stocks to invest in while they're on sale.
Image source: Getty Images.
1. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the market leader in something we use every day: internet searches. Its Google search tool has held a 90% share of the market over time, and it's unlikely that will change any time soon for two reasons.
First, internet users are used to "Googling" something when they need information, so it would be difficult for a rival to change those habits. Second, Alphabet has invested in artificial intelligence (AI) to make its search capabilities even better.
And speaking of AI, the company recently introduced its most powerful AI model ever, Gemini. It's starting to roll out this tool across its products and right now is experimenting with it in Search.
Alphabet also is growing its cloud service, which reported a double-digit increase in revenue in the recent quarter. The company's focus on AI should boost this business over time, too.
Right now, Alphabet shares trade for only 23x forward earnings estimates -- even after this year's gains.
2. Chewy
Chewy (NYSE: CHWY) is the younger player I was talking about. This e-commerce pet supplies shop reached the big milestone of profitability last year and has continued to grow revenue this year, despite a difficult economic environment.
What's key is that Chewy customers keep coming back -- and are spending more and more. The company offers an Autoship service that automatically reorders and sends your favorite products to you. This service continues to grow and represents more than 76% of Chewy's overall net sales. What I like about Autoship is it shows us customer trends, offering visibility into future revenue.
In addition, there may be another growth catalyst just ahead. The company recently expanded into Canada -- a country where it sees significant opportunity -- and says customer demand has been high.
Chewy shares have declined this year, and the stock is trading at 36x forward earnings estimates. This is a reasonable price for a young, high-growth company.
3. Carnival
Carnival (NYSE: CCL) (NYSE: CUK) shares have climbed this year but are still well below their pre-pandemic levels. At the same time, the company has been managing its recovery from coronavirus shutdowns well and is even reporting impressive levels of growth.
CCL data by YCharts.
First, a bit about recovery. After the pandemic temporarily halted cruises, Carnival built up $34 billion in debt. But the company's efforts to cut costs -- like shifting to more fuel-efficient ships -- have been bearing fruit, and a sharp increase in cruise demand has helped, too.
Carnival paid down almost $4 billion in debt this year, and thanks to growing adjusted free cash flow, it can progressively lower debt in the months and years to come. The results of recent quarters offer us reason to be optimistic. In the third quarter, revenue hit an all-time high -- and the advanced booking position for 2024 cruises surpassed historic highs.
Even though Carnival shares have performed well in recent times, they still trade at 1.1x sales, lower than their pre-pandemic level by this measure.
4. Apple
Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. The popularity of Apple's products hasn't let up, and the company continues to not only keep users loyal but also to attract new customers. In the most recent quarter, half of Mac and iPad purchases were made by customers new to those particular products.
And thanks to these products, Apple has built up a second major revenue stream: services. The company now has more than 1 billion paid subscribers -- and it offers them a vast range of services from digital content to payment tools. This generates revenue for Apple, and in the most recent quarter, this services revenue has reached a record high.
There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices. That's why the stock looks dirt cheap at 29x forward earnings estimates and makes a top investment right now.
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. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Chewy. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. In fact, even some of this year's gainers offer you plenty of bang for your buck today -- like track records of growth and bright long-term earnings prospects. But the company's efforts to cut costs -- like shifting to more fuel-efficient ships -- have been bearing fruit, and a sharp increase in cruise demand has helped, too. | Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices. | Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices. | Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. 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 Motley Fool has positions in and recommends Alphabet, Apple, and Chewy. |
||
12115.0 | 2023-12-12 00:00:00 UTC | Apple reaches record high close as Fed signals rate cuts | AAPL | https://www.nasdaq.com/articles/apple-reaches-record-high-close-as-fed-signals-rate-cuts | Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96
Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024.
Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31.
The stock hit an intraday high of $198.00, shy of its intraday record of $198.23 on July 19.
The world's most valuable company now has a market capitalization of $3.08 trillion.
U.S. stocks surged after the Fed held interest rates steady, with a near-unanimous 17 of 19 Fed officials projecting the policy rate will be lower by the end of 2024.
Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022.
Apple's shares have surged 52% so far in 2023, making a major contribution to the Dow's 12% recovery over that time, and to the S&P 500's 23% rally in the same period.
(Reporting by Noel Randewich; editing by Jonathan Oatis)
(([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. | Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022. | Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022. | Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. (Reporting by Noel Randewich; editing by Jonathan Oatis) (([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. | Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. The stock hit an intraday high of $198.00, shy of its intraday record of $198.23 on July 19. |
||
12116.0 | 2023-12-12 00:00:00 UTC | 80% of Warren Buffett's $313 Billion Portfolio Is in Just 5 Stocks. Find Out What He Owns Now. | AAPL | https://www.nasdaq.com/articles/80-of-warren-buffetts-%24313-billion-portfolio-is-in-just-5-stocks.-find-out-what-he-owns | Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has a $313 billion investment portfolio that Warren Buffett has been in charge of for decades. And while he is known for buying companies for cheap and holding for decades, he's made some big moves in recent years. Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio.
In this video, Travis Hoium goes through the Apple position and the top five stocks, which make up 80% of this massive portfolio.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Travis Hoium has positions in Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. And while he is known for buying companies for cheap and holding for decades, he's made some big moves in recent years. In this video, Travis Hoium goes through the Apple position and the top five stocks, which make up 80% of this massive portfolio. | Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. Travis Hoium has positions in Alphabet, Apple, and Berkshire Hathaway. |
||
12117.0 | 2023-12-12 00:00:00 UTC | ANALYSIS-Investors cheer Fed's dovish pivot, as focus shifts to 2024 risks | AAPL | https://www.nasdaq.com/articles/analysis-investors-cheer-feds-dovish-pivot-as-focus-shifts-to-2024-risks | By Lewis Krauskopf and David Randall
NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings.
The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024.
The message was more dovish than many investors were expecting. Plunging Treasury yields helped the S&P 500 .SPX rise nearly 1.4% on Wednesday, the biggest gain in the index on a day that the Fed issued its monetary policy statement since July 2022. The benchmark U.S. 10-year Treasury yield, which moves inversely to bond prices, stood at around 3.96% on Thursday morning, the lowest level since late July. US10YT=RR.
"The Fed is done raising rates, and the market could not be more thrilled to have higher conviction in that," said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.
The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook.
Seventeen out of 19 Fed officials project that the policy rate will be lower by the end of 2024 than it is now - with the median projection showing a fall to 4.6% from the current 5.25%-5.50% range. That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed.
With few major macroeconomic events expected for the rest of December, the S&P 500 could have the momentum to end the year by matching or exceeding the closing high it set in January 2022. The index is now less than 2% below that record of 4,796.56. The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company.
Seasonal factors could provide a tailwind: December has been the third-best month for the S&P 500 since 1950, with the second half of the month typically stronger than the first, according to data from LPL Financial.
Support could also come from formerly bearish investors' abandoning their positions. Data from BofA Global Research showed that leveraged funds “are not bullish and continue to fight rallies” in stocks after increasing their net short in the face of the S&P 500’s fourth-quarter rebound, the bank said in a recent report.
“It’s getting hard for bears to have something to point to,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions, who recently increased his equity exposure to take advantage of seasonal trends.
Still, many investors are wondering how much of the Fed’s dovishness has already been priced in during a rally that has seen the S&P 500 rise more than 22% this year. Next year, the economy must walk a fine line to satisfy the “Goldilocks” narrative of cooling inflation coupled with still-resilient growth.
“Into this year, the market had gotten cheaper ... sentiment was bearish. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning.
The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream. S&P 500 company earnings are expected to rise 11.4% in 2024, after a 2.6% increase in 2023, according to LSEG data.
Mike Sanders, head of fixed income at Madison Investments, said the market is “far, far more aggressive in cuts than even what the Fed let on in a very dovish statement.”
The key focus of the next six months will be whether inflation can continue to fall while the jobs market remains stable, said Sanders, who is bullish five-year Treasuries. “We need to be certain that the soft landing isn’t just a prelude for a hard landing,” he said.
Carol Schleif, chief investment officer with the BMO Family Office, will be watching the health of the consumer as "we finish out the holiday season," including how consumers "are able to absorb higher credit card bills when they come in January after the holiday selling season."
Jason Pride, chief of investment strategy and research at Glenmede, said the Fed’s latest economic projections appear to forecast a soft landing.
"However, there has never been an instance where rates have remained this high for this long without causing collateral damage for the economy," Pride said.
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Lewis Krauskopf and David Randall; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Leslie Adler)
(([email protected]; Twitter: @LKrauskopf;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. By Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024. | The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed. The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream. | The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. By Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning. | The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. The message was more dovish than many investors were expecting. The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook. |
||
12118.0 | 2023-12-12 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-27 | 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. |
||
12119.0 | 2023-12-12 00:00:00 UTC | DGRW, CEW: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/dgrw-cew%3A-big-etf-inflows | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units.
VIDEO: DGRW, CEW: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. |
||
12120.0 | 2023-12-12 00:00:00 UTC | Technology Sector Update for 12/13/2023: AAPL, TTWO, META | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-13-2023%3A-aapl-ttwo-meta | Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%.
The Philadelphia Semiconductor index fell 0.3%.
In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Apple shares rose 1.1%.
Meta Platforms (META) allegedly ignored its own lawyers' warning of the repercussions of using thousands of pirated books to train its AI models, Reuters reported late Tuesday. The shares were little changed.
Take-Two Interactive Software (TTWO) will be added to the Nasdaq-100 Index, while Seagen (SGEN) will be removed as part of the index's annual reconstitution from Monday. Take-Two gained 2.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Meta Platforms (META) allegedly ignored its own lawyers' warning of the repercussions of using thousands of pirated books to train its AI models, Reuters reported late Tuesday. | In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. The Philadelphia Semiconductor index fell 0.3%. Apple shares rose 1.1%. | In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Take-Two Interactive Software (TTWO) will be added to the Nasdaq-100 Index, while Seagen (SGEN) will be removed as part of the index's annual reconstitution from Monday. | In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Apple shares rose 1.1%. |
||
12121.0 | 2023-12-12 00:00:00 UTC | Analysts Expect This Russell 2000 Penny Stock to Double | AAPL | https://www.nasdaq.com/articles/analysts-expect-this-russell-2000-penny-stock-to-double | Investing in penny stocks is not for the faint-hearted. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time.
Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. However, early investors in these tech titans, too, had to endure multiple pullbacks of over 80% several times on the way to outsized returns.
Investors with a large risk appetite can consider investing a small portion of their equity portfolio in penny stocks that have the potential to outpace the broader markets. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months.
www.barchart.com
An Overview of OPKO Health
Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets.
A diversified diagnostic platform, Opko Health owns and operates BioReference, one of the largest laboratories in the U.S., with a leading position in verticals such as Oncology and Urology. Following the COVID-19 pandemic, BioReference has transitioned towards core and specialty diagnostics.
It also offers the 4Kscore Test, an FDA-approved blood test that helps assess the probability of aggressive prostate cancer in patients. Last year, Opko acquired ModeX Therapeutics, a biotech company that develops multi-specific immune therapies for cancer and infectious diseases.
What's Driving Growth at Opko?
Similar to other healthcare companies, Opko Health benefited from the COVID-19 pandemic, allowing it to increase sales from $902 million in 2019 to $1.43 billion in 2020 and $1.77 billion by 2021.
However, as the virus was brought under control, sales fell to $1 billion in 2022, and are forecast to decline by 14.4% to $859 million this year. OPK remains unprofitable, but is forecast to narrow its losses in each of the next two fiscal years.
BioReference is among the largest full-service laboratories in the U.S., serving all 50 states. It has labs in New Jersey, Texas, Florida, and California, offering more than 3,000 tests. The lab serves roughly 10 million patients each year while operating high throughput facilities and specialty labs.
The total U.S. lab market is valued at $104 billion, providing Opko Health with enough room to grow its top line, given it reported sales of $868 million over the last four quarters.
In early 2023, OPKO secured FDA approval for Ngnela, which aims to develop diagnostic tests for the early detection of cancer. Its subsidiary ModeX also bagged an initial contract worth $59 million from the Biomedical Advanced Research Development Authority to develop antibodies against viral infectious disease threats. On reaching certain milestones, ModeX will be eligible for an additional grant totaling $109 million.
What Is the Target Price for This Penny Stock?
Along with the quiet endorsement of heavy insider buying, each of the five analysts tracking OPK stock has a “strong buy” rating on the healthcare company. The average target price for OPK is $3.60, indicating an upside potential of almost 137% from current levels.
www.barchart.com
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Investors with a large risk appetite can consider investing a small portion of their equity portfolio in penny stocks that have the potential to outpace the broader markets. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months. | Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months. www.barchart.com An Overview of OPKO Health Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets. | Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time. www.barchart.com An Overview of OPKO Health Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets. | Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time. The total U.S. lab market is valued at $104 billion, providing Opko Health with enough room to grow its top line, given it reported sales of $868 million over the last four quarters. |
||
12122.0 | 2023-12-12 00:00:00 UTC | Foxconn to invest additional $1.7 bln in India's Karnataka state | AAPL | https://www.nasdaq.com/articles/foxconn-to-invest-additional-%241.7-bln-in-indias-karnataka-state | Adds background in paragraphs 2-6
Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday.
The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions.
It has rapidly expanded its presence in India over the past year by investing heavily in manufacturing facilities in the south of the country.
In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment.
Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs.
The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment.
($1 = 83.3900 Indian rupees)
(Reporting by Munsif Vengattil; Writing by Kanjyik Ghosh and Sakshi Dayal; Editing by Devika Syamnath and Tomasz Janowski)
(([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. | The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions. In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment. The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment. | Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs. The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment. | Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment. Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs. | Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions. It has rapidly expanded its presence in India over the past year by investing heavily in manufacturing facilities in the south of the country. |
||
12123.0 | 2023-12-12 00:00:00 UTC | Time for Apple ETFs on Optimism for Holiday Season & Beyond? | AAPL | https://www.nasdaq.com/articles/time-for-apple-etfs-on-optimism-for-holiday-season-beyond | Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). However, its performance lagged some of its tech peers due to subdued demand for its hardware products, influenced by a cautious consumer sentiment.
But the fate of Apple could rebound from this holiday season. At least, Wedbush analyst Daniel Ives believes so. Even Warrant Buffett’s Berkshire Hathaway has 50% of its weight in Apple, up from about 39% in the fourth quarter of 2022. Let’s delve a little deeper (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
Insight From Wedbush Analyst Daniel Ives
Wedbush analyst Daniel Ives, who maintains an Outperform rating on Apple, has raised the price target from $240 to $250. Ives holds an optimistic view regarding Apple's future, predicting that it will become the first company to reach a market capitalization of $4 trillion.
Apple stock was priced at $193.18 with a market cap of $3.04 trillion at the end of Dec 11, 2023. Ives anticipates that this target of $4 trillion market cap will likely be achieved by the end of 2024. This positive outlook stems from the expected growth and monetization prospects for the company in the upcoming year.
Expectations for a Strong Holiday Season
The analyst also foresees a robust holiday season for Apple, with expectations of iPhone sales outpacing forecasts for the December quarter. Strong upgrade activity in both the United States and China is also expected to contribute significantly to this favorable trend.
What Lies Ahead in 2024?
Ives highlights several factors that contribute to Apple's positive outlook. These include an expected increase in the average selling price of Apple products, projecting it to be $925 compared to the range of $825-$850 observed in recent years.
Shares of the tech giant suffered in September amid reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. These concerns are expected to moderate as Apple appears to be weakening manufacturing ties with China. Talks are doing rounds that Apple is relocating its manufacturing base from China to India (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
For 2024, Apple anticipates potential growth opportunities with new MacBooks featuring M3 chips and the launch of the Vision Pro headset. Apple’s focus on augmented reality/virtual reality (AR/VR) technologies presents growth opportunities for the long haul.
Subdued Hardware Sales Growth to Be Nullified by Strong Services Revenues?
Ives points out that Services revenues have been experiencing steady double-digit growth. Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2024 and beyond. While Apple's core business revolves mainly around its flagship iPhone, the Services division has become the company's cash cow lately.
Apple's efforts to expand its ecosystem through collaborations with companies like Samsung and Amazon bode well for the Services sector. The subscription-based video streaming, news, and gaming services are anticipated to thrive due to Apple's extensive user base. Plus, the App Store's strong sales, combined with the widespread adoption of Apple Pay and Apple Music, have also contributed to this growth.
What Does Valuation Say About the Stock?
Apple shares are currently trading at 28.41X forward 12-month earnings, which compares to 27.72X for the Zacks sub-industry, 24.4X for the Zacks sector and 19.09X for the S&P 500 Index.
Although Apple’s current multiple is higher than the sub-industry, it is still lower than sub-industry’s five-year high of 32.32X.
Are ETFs Better Bets?
Investors intending to follow Warren Buffett but still wary of the slowing sales of Apple may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. The fund has a Zacks Rank #2 (Buy).
Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. The fund has a Zacks Rank #2.
Vanguard Information Technology ETF VGT – AAPL occupies the first location with 20.40% weight. The fund has a Zacks Rank #2.
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
Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. | Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. |
||
12124.0 | 2023-12-12 00:00:00 UTC | Apple Nears All-Time High: Is the Tech Giant Too Extended? | AAPL | https://www.nasdaq.com/articles/apple-nears-all-time-high%3A-is-the-tech-giant-too-extended-0 | Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn’t hurt either.
Following a greater than 50% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Image Source: StockCharts
Buying at New All-Time Highs
Purchasing stocks at new all-time highs following a bear market has proven to be successful in the past. It’s the market’s way of telling us that higher prices are on the horizon. And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there’s plenty of reasons to suspect that the momentum can continue.
Despite the technical progress this year, most professional fund managers (along with individual investors) were underweight stocks, missing the majority of the rally. The lack of respect for the market’s recovery aided the bullish move off the 2022 bear market lows.
It’s normal to expect that the rally won’t continue, but history tells us otherwise. The S&P 500 is less than 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
The Business of Apple
Apple is engaged in the designing, manufacturing, and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple’s well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple’s business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn’t enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefitted from the AI theme this year.
Apple Stock – The Zacks Rundown
Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. Because it is ranked in the top half of all industries, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 50% return:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Apple has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal fourth-quarter earnings back in November of $1.46/share, beating the $1.39 Zacks Consensus Estimate by 5.04%. Apple has delivered a trailing four-quarter average earnings surprise of 3.47%.
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see earnings grow 7% in the current fiscal year on revenues of $393.4 billion. Given Apple’s history of beating estimates, it wouldn’t be too surprising if these figures ended up being a bit light.
What to Do Now
Buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Apple appears to be breaking out of a multi-month consolidation pattern, bolstering the bullish case.
The market is telling us to expect the unexpected. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock inches closer to a new all-time high.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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. | A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. AAPL is currently a Zacks Rank #3 (Hold) stock. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. |
Subsets and Splits