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.
For Immediate ReleaseChicago, 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 f
For Immediate ReleaseChicago, 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 f
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 th
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
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 an
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.
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.
It seems like everyone loves Apple (NASDAQ: AAPL). Well, at least 29% of those reading this do. That is the global market share for the smartphone maker, putting it in the lead over competitors such as Samsung and Alphabet's Google. With strong marketing, quality products, and lo
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 di
Exxon Mobil’s income tax payments to the U.S. government have dropped to 3% over the past five years – several times below the company’s 20-year average – on massive deductions passed under former President Donald Trump.
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 coll
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.
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
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 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 [...]
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