Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.5 billion dollar inflow -- that's a 0.7% increase week over week
Apple AAPL is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. The nine-episode limited series will make its global debut on Jan 26, 2024.Masters of the Air
The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%.
Broadly speaking, large- and mega-cap tech stocks are far from bear market territory. But the Nasdaq-100 Index (NDX) closed 6% below its 52-week high last Friday. These days, that could qualify as a pullback among stalwart growth stocks. It could also signal a buying opportunity with ETFs such as the Invesco QQQ Trust (QQQ) and [...]
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Several Wall Street brokerages started coverage of Arm Holdings with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth.
EU antitrust regulators are asking Microsoft's users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's iMessage, people familiar with the matter said on Monday.
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.
Technology stocks were mixed pre-bell Monday, with the Technology Select Sector SPDR Fund (XLK) 0.7% lower and the SPDR S&P Semiconductor ETF (XSD) 0.1% higher recently.
Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%.
Several Wall Street brokerages started coverage of Arm Holdings with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth.
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
Warren Buffett has one of the best and longest track records and is considered by many to be the greatest investor ever. Even at 93 years old, his mind seems as sharp as ever.
How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? It depends on which measurement you use.
Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others.
The stock market has entered October after two very difficult months, particularly for the technology sector. August and September delivered a combined 7.4% loss for the technology-laden Nasdaq Composite.
The market has been wobbly over the past month as high interest rates continued to drive investors from stocks toward fixed-income investments. But the S&P 500 is still up 11% year to date, so we have yet to encounter a true market pullback.
Growth investors often lament that if they had just put $10,000 in one of the more successful tech giants, they would be millionaires today. Knowing that, they will often buy what they think are stocks that will soar in the future in the hope of earning such a return years later.
Kids (and many adults) enjoy trying to find a character named Waldo in different settings in the children's book series Where's Waldo?. It can sometimes take a little time to find Waldo, but the challenge isn't too difficult.
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