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Stock Market News for Oct 9, 2023

2 years 11 months ago
U.S. stocks ended sharply higher on Friday as investors assessed a monthly jobs report that showed robust job additions in September as well as slowing wage growth. All the three major indexes ended in positive territory.
Zacks

Analysts Expect IYW To Hit $125

2 years 11 months ago
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itsel
BNK Invest

Meta Platforms (NASDAQ:META): A Must-Watch Stock for AI Investors

2 years 11 months ago
Social media company Meta Platform's ( NASDAQ:META ) efforts to strengthen its position in the AI (artificial intelligence) race have gained significant traction in recent months. The stock has risen by 162% year-to-date, outperforming the S&P 500's ( SPX ) 12% gain, and analysts see more upside ahead. Meta's attempt to strengthen and monetize its already popular social media platforms by adopting generative AI could boost its revenue and earnings in the next few quarters. Hence, I am bullish on META stock now. Meta Platforms: Gearing Up for Another Strong Quarter Meta (formerly Facebook) is a part of the big tech  FAANG group, which also includes Amazon ( NASDAQ:AMZN ), Apple ( NASDAQ:AAPL ), Netflix ( NASDAQ:NFLX ), and Alphabet (formerly Google) ( NASDAQ:GOOGL ). Meta Platforms owns social media platforms Facebook, WhatsApp, Instagram, Messenger, the recently launched Threads, and others. These fall under one of its segments, Family of Apps (FoA). Its augmented and virtual reality-related products and services fall under its other reportable segment, Reality Labs (RL). Reality Labs hasn’t been profitable for the company. In Q2, it reported a $3.7 billion operating loss, however, thanks to its FoA segment, which is making up for the damage done. It brought in $31.7 billion in revenue, accounting for a chunk of total revenue, resulting in a $13.1 billion operating profit. CEO Mark Zuckerberg had set 2023 as the "year of efficiency" and has been working hard to make that happen. It entailed layoffs, reducing spending on less significant projects, and focusing on more AI-related projects. During its Q2 earnings call, the company discussed how its AI-related investments over the years are finally paying off. Meta Stock: Powering Through AI Innovations Certainly, it has been a year of efficiency. Most recently, at Meta's Connect conference, CEO Mark Zuckerberg unveiled the company's new generative AI products, which sparked market excitement. Meta AI is an advanced conversational assistant that can generate text responses and photo-realistic images and is integrated with Meta's popular products, WhatsApp, Messenger, and Instagram. Meta AI is powered by Llama 2, its large language model, which it released in July in collaboration with Microsoft ( NASDAQ:MSFT ). The company intends to incorporate Meta AI into its mixed reality headset, Quest 3, and another new offering, a new generation of Ray-Ban Meta smart glasses. The company will launch Quest 3 on October 10. Zuckerberg described Quest 3 as the best value in the industry for combining digital and real-world experiences at a low cost. Indeed, it is low-cost, priced at $500, while competing with Apple's Vision Pro Headset, which will come with a price tag of around $3,500. Apple's headset is set to hit the market in early 2024. What's more, its new generation of Ray-Ban Meta smart glasses, in collaboration with EssilorLuxottica, are priced at $299. The glasses will be launched in the third week of October. Meta claims the glasses can take pictures, record videos, and connect to social media. Along with these, Meta has added generative AI stickers to its messaging apps. It could use AI to unlock more monetary potential in the wildly popular messaging app WhatsApp, which it purchased for $19 billion in 2014. More features from the company include its monthly subscription charges for ad-free Instagram and Facebook app use in Europe, which could be around 10 euros ($10.60 at current exchange rates). CFO Susan Li stated that the company's capital expenditures could rise in 2024 as it navigates AI and metaverse opportunities by expanding its workforce with more technical roles. Looking ahead, management anticipates revenue in the third quarter to be in the $32 billion to $34.5 billion range, representing an impressive 16% to 25% increase over Q3 2022. Meanwhile, analysts expect its revenue to be in the $29 billion to $34 billion range, with earnings estimates ranging from $2.27 to $4.27 per share, with the consensus EPS estimate landing at $3.59. On October 25, Meta will report its third-quarter earnings. Additionally, Meta closed its Q2 with a hefty cash balance of $53.5 billion and $18.3 billion in long-term debt. Given the company's rapid growth in revenue and profits, repaying the debt shouldn't be hard. Furthermore, it generated a sizable $11 billion in free cash flow in the quarter, which should aid in debt repayment and future project financing. While in pursuit of getting ahead in the AI race, Meta also believes this technology is still in its early stages and thus intends to build it responsibly. Is META Stock a Buy, According to Analysts? Turning to Wall Street, TipRanks rates Meta as a Strong Buy, with 40 Buys, two Holds, and no Sell ratings assigned in the past three months. The average META stock price target of $376.47 implies 19.35% upside potential. The highest price target for the stock stands at $435, while the lowest is at $285 per share. The Takeaway Summing up, sitting at a market cap of $811.6 billion, Meta is very close to joining the $1 trillion club. With Meta's efforts to monetize its social media apps and capitalize on the massive growth brought about by AI, the company is well-positioned to achieve this goal. Though the AI niche is enticing, it is also susceptible to market fluctuations. But for now, I share Wall Street's optimism about META stock's outstanding long-term prospects. Disclosure
TipRanks

Forget Disney. Apple (NASDAQ:AAPL) Should Buy Nintendo to Jolt iPhone, Vision Pro Sales

2 years 11 months ago
It's hard to avoid the rumors surrounding Apple ( NASDAQ:AAPL ) and how a Disney ( NYSE:DIS ) acquisition would pan out. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo ( OTC:NTDOY ) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters. Either way, I am bullish on Apple stock as shares cool for autumn. Undoubtedly, there are some serious troubles at the House of Mouse right now. The stock is heavily discounted, now down around 60% from its all-time high hit back in 2021. Still, the $152 billion behemoth isn't just too large to be an acquisition target (maybe except by titans like Apple), but there are too many moving parts to the business, and they don't appear to be moving gracefully together these days. Add succession issues into the equation, as CEO Bob Iger looks to turn the tides under yet another tenure, and it's clear that Disney may not be the juiciest Apple (please forgive the pun) of Apple's eye at this point in time. Why Apple Probably Won't Buy Disney in Whole The Apple Vision Pro reveal gave a bit of time to Disney and its top boss, Bob Iger, to discuss the possibilities for Disney in the age of spatial computing. And while Disney's streaming platform, deep library of content, and ESPN sports channel would fit well in the Apple TV+ arsenal, we can't forget about the Theme Parks and Cruises business, which isn't precisely within Apple's circle of competence! Even if bought Disney in whole, what would it do with parks? I'm not so sure it wants to get into that business. Though, I suppose anything is possible if the price is right. Iger recently announced the firm's intention to double down on its Parks business, which seems like a pretty wise move, given that it seems to need to do more to justify ticket price hikes. In any case, I wouldn't get my hopes up for a Disney-Apple deal, as it doesn't seem to make a lot of sense, in my humble opinion. However, I do think pursuing ESPN could prove wise, given how incredible the sports content looked on Vision Pro during its big reveal back in June. Back to Nintendo. Nintendo seems to "rhyme" with Disney but in the world of video games. The company has a strong, time-tested library of content, characters, and expertise. And though it has Nintendo World theme parks, which recently opened in Universal Studios Hollywood earlier this year, I'd argue that parks are an incredibly small part of the overall pie, at least compared to Disney. Video Gaming Could be More of a Game-Changer for Apple I view gaming as an area that could mean the difference between a mild Vision Pro launch and a scorching hot one. Additionally, it's hard to look past the graphical capabilities of the iPhone 15 Pro and iPhone 15 Pro Max. With console-worthy game titles (like Resident Evil 4 and Resident Evil Village) now playable on the iPhone 15, Apple seems to have advanced on the hardware front such that it now makes sense to double-down in the realm of triple-A gaming to make the most of the hardware. Indeed, the latest line of console-grade games look impressive when played on the latest iPhone. However, there's one small thing that could prevent the iPhone from eating into the share of the PC or console gaming market -- a lack of titles. Apple could acquire its way to solve the problem. Given that Nintendo has a ton of impressive family-friendly exclusives that we all know and love, I view Nintendo as the perfect piece to the puzzle. It's not just the iPhone that could be a disruptive triple-A gaming platform. The Vision Pro's hardware looks to be best-in-class, but on the front of gaming, I'm sure you could give the edge to Meta Platforms ( NASDAQ:META ) and its Meta Quest 3 headset. A recent FastCompany article I came across gave praise to Meta's plan to beat Apple, noting that Meta's offering is cheaper, faster, and more fun. In the power versus affordability debate, I think power wins every step of the way (one point for Apple Vision Pro). Still, at this juncture, it's hard to deny that Meta's offering looks more fun, given how much emphasis was placed on gaming. Apple has the power to change things, however, and all it could take is a few major partnerships or one big acquisition. Is Apple Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Moderate Buy. Out of 29 analyst ratings, there are 20 Buys and nine Holds. The  average Apple stock price target is $207.69, implying upside potential of 17%. Analyst price targets range from a low of $167.00 per share to a high of $240.00 per share. The Bottom Line Buying Disney would give Apple a nice edge as it continues investing in its Apple TV+ business. Still, I'd argue Nintendo would give the iPhone maker a better bang for its buck, as exclusive games and characters would enable the firm to better showcase the potential of its graphically-capable hardware. Additionally, the only thing that may stop the Vision Pro from being a mainstream success may be how "fun" it is for users. Sure, its $3,500 sticker price is a shocker, but if it has some exclusive games on it, I'd bet a lot of people will be itching to get their hands on one anyway. Disclosure 
TipRanks

Is It Too Late to Buy Apple Stock?

2 years 11 months ago
Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. The company isn't always the first to a market, but has a proven talent at taking existing technology and using its custom design language to skyrocket the product into mainstream use. Smartphones, tablets,
The Motley Fool

5 Top Buffett Stocks to Buy and Hold for the Long Haul

2 years 11 months ago
Warren Buffett might be the world's most famous long-term investor. He's become one of Earth's wealthiest people from a decades-long and fruitful investing career. His secret? Finding wonderful companies at fair (or better) prices and holding them.
The Motley Fool
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