Stocks splits have no direct impact on a business aside from reducing its share price, but they can still be a useful indicator for investors. Stock splits are only necessary following substantial and lasting share price appreciation, which itself tends to correlate with strong f
Taiwan's TSMC has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is so revered on Wall Street, just take a closer look at his track record.
Robinhood Markets (NASDAQ: HOOD) may not have the buzz it did during the height of the pandemic, but the app-based brokerage still wields a lot of influence in the investing world.
Apple said on Friday it would issue a software update for
iPhone 12 users in France, in what seemed to offer a way out of
a row with French regulators which had ordered the suspension of the phone's sale due to breaches of radiation exposure limits.
Taiwan's TSMC has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
French Digital Affairs Minister Jean Noel Barrot on Friday said Apple told him that it will implement an update for its iPhone 12 model in the next few days to fix radiation issues which earlier this week triggered a sales halt in France.
Taiwan's TSMC has told its major suppliers to delay the delivery of high-end chipmaking equipment, as the world's top contract chipmaker grows increasingly nervous about customer demand, two sources familiar with the matter said.
Apple (NASDAQ:AAPL) released its new iPhone 15 devices at a special event on Tuesday, offering incremental upgrades over last year’s models. There were no big surprises on the product front, and Apple didn’t boost prices across the Pro lineup as Wall Street had been a
In the latest trading session, Apple (AAPL) closed at $175.74, marking a +0.88% move from the previous day. This move outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq add
Shares of Meta Platforms (
NASDAQ:META
) have been scorching hot so far this year, now up more than 144% year-to-date. Indeed, the generative
artificial intelligence (AI) boom has been a major contributor to Meta's explosive relief rally, but it's the WhatsApp opportunity that may be one of the company's next big drivers as AI hype begins to taper off a bit. Therefore, I'm staying bullish on META alongside a vast majority of Wall Street analysts covering the company.
In recent weeks, a lot of enthusiasm has surrounded META stock for its improving position in the AI race. The company's Llama (Large Language Model Meta AI) 2 AI model is an open-source system that could be the firm's secret weapon to pull ahead in its battle against competing LLMs like
ChatGPT. Undoubtedly, the fact that it's available open source, even for commercial use, sets Meta's AI strategy apart from peers, including Microsoft (
NASDAQ:MSFT
).
Although I'm sure more AI news could keep the momentum going strong over at Meta, it's the monetization potential behind the messaging app WhatsApp that could help power shares toward all-time highs of around $380 and change. Further, introducing AI chatbots into the popular messaging app could take its growth to the next level.
WhatsApp's $19 Billion Price Tag Could Prove Too Low
Since acquiring the app back in 2014 for a lofty $19 billion, Meta hasn't really been able to turn it into any sort of meaningful cash cow. This could change moving forward as the firm looks to drive the profitability of the massive network that may have flown under the radar of investors and analysts for years. What's the catalyst? Generative AI tech.
Back in 2014, WhatsApp's price tag seemed just a bit absurd, especially given the free app wasn't exactly packed full of features, nor was it raking in the dough. What the app did have, though, is a massive userbase. Currently, WhatsApp is estimated to have as many as 2.8 billion active users. For a front-row seat to such a sizeable portion of the world population, $19 billion may prove a bargain for Meta, a firm that's made some very smart and bold M&A moves in its lifetime.
As Meta's AI capabilities (Llama 2 and beyond) improve, WhatsApp could be the medium of choice for users to interact with a broad range of LLMs. Imagine using a ChatGPT-like service on WhatsApp, the same place you interact with the everyday people in your life. In many ways, it seems like Meta could be turning WhatsApp from a simple, free messaging platform into a super app that features a broad range of services, encompassing payments and customer service.
WhatsApp: The Next Big Super App?
Undoubtedly, the concept of super apps (one app that covers a broad and differing range of services) has been mostly limited to China. Looking ahead, Meta could be in a unique and enviable position to bring super apps into their prime in the U.S., Canada, and other parts of the globe.
Indeed, firms like Apple (
NASDAQ:AAPL
) could stand in the way of such super apps, insisting that Meta have different apps for payments and other services tied to WhatsApp. In any case, I'd keep a close watch on WhatsApp over the next two years as the company increases the pace of new feature rollouts.
Most recently, Meta
brought WhatsApp Channels to over 150 countries. WhatsApp Channels allow the app to offer Telegram-like messages from influential people and other organizations. The new feature bolsters WhatsApp's social capabilities and could help it take B2C (business-to-consumer) interactions to the next level.
What is a Fair Price for META Stock?
On TipRanks, META stock comes in as a Strong Buy. Out of 43 analyst ratings, there are 41 Buys and two Holds. The
average Meta Platforms price target is $376.19, implying upside potential of 20.7%. Analyst price targets range from a low of $285.00 per share to a high of $435.00 per share.
The Bottom Line on META Stock and WhatApp's Potential
WhatsApp is getting more capable, and it's doing so at an increasing pace. I think it's just a matter of time before WhatsApp becomes so packed full of new features that its billions of users begin spending even more of their time in the app. Up ahead, look for WhatsApp to take a page right out of the playbook of super apps like China's WeChat as it looks to expand its WhatsApp Payments service.
Disclosure
The NASDAQ 100 After Hours Indicator is up 3.34 to 15,477.23. The total After hours volume is currently 70,358,516 shares traded.The following are the most active stocks for the after hours session: Bank of America Corporation (BAC) is unchanged at $29.20, with 7,490,328 shares
In today's video, I discuss various semiconductor stocks and recent updates. Check out the short video to learn more, consider subscribing, and click the special offer link below.
Apple (
NASDAQ:AAPL
) unveiled the iPhone 15 on Tuesday, which, in my view, is going to be a flourishing successor for the tech giant. Despite the usual
mixed reactions following major Apple announcements, I see this event as a resounding success. Apple has once again harnessed its unique formula -- seamlessly blending innovation with familiarity, a combination that consistently appeals to both consumers and investors. While market noise may bring short-term volatility to Apple's stock, I maintain a bullish outlook.
Is Apple's iPhone 15 More of the Same?
The unveiling of Apple's iPhone 15 has stirred the familiar refrain: "It's more of the same." However, let's delve deeper into this assertion, for it carries significant weight. You see, the iPhone is not just any product in Apple's arsenal. It stands as the flagship and is responsible for almost half (48% in fiscal Q3) of the tech giant's sales. Thus, any iteration of this iconic device is nothing short of momentous.
So, is it accurate to claim that the iPhone 15 treads familiar ground? To a certain extent, yes, but should we perceive this continuity as a negative? Absolutely not. In fact, it's a testament to Apple's remarkable understanding of its consumer base. What the faithful patrons of Apple consistently desire is a harmonious blend of the familiar and the novel.
Of course, innovation is essential, as it serves as the spark that ignites excitement and motivates individuals to upgrade their devices. However, beyond these incremental advancements, there exists little rationale for altering an already exceptional product. The iPhone 15, like its predecessors, serves as a refined embodiment of this philosophy. It gracefully maintains the aspects that users cherish while judiciously integrating innovations to enhance the overall experience.
Demand for iPhone 15 Should Remain Very Strong
In my view, the demand for the iPhone 15 will be very strong, driven by the same enduring reasons that have consistently fueled interest in each preceding model -- the allure of a new design, merely for the sake of novelty, but mostly the desire for a device that seamlessly enhances our daily lives. What iPhone users (myself included) want is the continuation of that same exquisite phone they've come to adore but with added features that elevate their experience. This is where the iPhone 15 shines.
The introduction of the Action Button in the iPhone 15 embodies this philosophy perfectly. It doesn't overhaul the appearance. Instead, it enhances functionality, enabling improved multitasking capabilities and quicker navigation. It's a subtle change that carries profound implications for users' daily interactions with the device.
Now, for creators and power users who have witnessed the remarkable performance of the iPhone 13 and 14, the marginal improvements in the iPhone 15 Pro's A17 Bionic chip may not raise eyebrows. That's totally fine. Its predecessors already delivered processing and rendering prowess par excellence.
Where the iPhone 15 truly leaves a mark is in its main camera, including quadrupling the MP (megapixels) to 48. Here, Apple knows that tangible improvements where it actually matters can deliver great value, particularly benefiting the ever-expanding community of creators.
In essence, Apple's approach to iPhone evolution may appear incremental, but it's precisely these incremental adjustments that have a significant impact on these otherwise beloved devices. Thus, the same can be said for the incremental improvements in Airpods and the Apple Watch.
Apple's Valuation Combined with Uncertainty May Cause Volatility Ahead
Despite my confidence in Apple's iPhone and upgrades regarding Airpods and the Apple Watch, I can see Apple stock being subject to some shorter-term volatility. This could be attributed to the combination of market noise and speculative activity that typically follows such events, compounded by the stock's hefty valuation. At nearly 30 times this year's projected earnings, Apple's valuation doesn't provide any margin of safety against wild stock wings.
That said, I believe that Apple is a stock to own, not one to trade. The company has consistently proven that it can grow its earnings into its valuation. Thus, while the current multiple is a premium one, I believe it shouldn't really matter over the long run. The fact that Apple stock has consistently reached new all-time highs after every speculative period in its history is a testament to this notion.
What are Analysts Saying About AAPL?
Turning to Wall Street, Apple features a Moderate Buy consensus rating despite its elevated valuation. This is based on 22 Buys and eight Holds assigned in the past three months. At $207.46, the average
Apple stock forecast suggests 18.2% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is
Krish Sankar from TD Cowen, with an average return of 93% per rating and a 49.16% success rate. Click on the image below to learn more.
The Takeaway
Overall, the iPhone 15's blend of familiarity and innovation reflects Apple's profound understanding of its user base. Demand for the iPhone and, therefore, Apple's overall ecosystem should remain very strong. Short-term stock volatility may occur, influenced by market noise and Apple's relatively expensive valuation. Nevertheless, for long-term investors, this is a stock to own, not to trade. In that regard, there is no significant reason for Apple bulls not to remain bullish.
Disclosure
Pandemic-era favorite Teladoc Health is trading near its 52-week lows. However, a strong growth outlook and attractive valuations make the stock a good buy at these prices.
Fox FOXA is set to release a new docuseries, My Son Jeffrey: The Dahmer Family Tapes, on Sep 18.This four-part limited series includes unheard conversations between the notorious serial killer and cannibal Jeffrey Dahmer and his f
The resurgence in geopolitical tensions between China and other countries has prompted some investors to shift their asset allocations away from companies exposed to China. The latest challenges include the Chinese government’s position on Apple (AAPL ) and the news that the European Union was investigating Chinese subsidies for electric...
The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
Tech giant Amazon (NASDAQ: AMZN) has faced its share of headwinds recently. Last year, the company reported a rare net loss as it dealt with economic-related issues. Some investors may also be wary that its legendary founder, Jeff Bezos, is no longer the company's CEO. However, A