|Day's Range||3.4000 - 4.0000|
Can history point out hidden risks for the stock market or is it clear sailing from here? As it turns out, the data is encouraging.
The impending launch of Xbox Series X by arch rival Microsoft forces Sony Corporation (SNE) to adopt a waiting game in its price-setting decision to avert being too overpriced.
Facebook warned of threats to innovation and freedom of expression on Monday, ahead of the release of a raft of rules by the European Union this week and in coming months to rein in U.S. tech giants and Chinese companies. The social media giant laid out its concerns in a white paper, and Chief Executive Mark Zuckerberg was expected to reiterate the message to EU antitrust chief Margrethe Vestager and EU industry chief Thierry Breton in Brussels on Monday. Referring to the possibility that the EU may hold internet companies responsible for hate speech and other illegal speech published on their platforms, Facebook said this ignores the nature of the internet.
The best tech stocks to buy and watch are strong price performers with healthy fundamentals, thanks to a new product or service that's driving growth.
(MSFT)(INTC) and (AAPL) among the biggest stocks in the S&P 500 index, have well outpaced the market benchmark in the past 12 months. “MIA” stocks is an apt term, given the trio has been underweighted by fundamentally-driven large-cap portfolio managers, according to Harvey. “Ironically, some [portfolio managers] admit they have not gone ‘up-cap’ in order to avoid looking like an index fund (painful mistake!),” he wrote.
Goldman Sachs analysts believe there’s still upside in tech stocks, even if other observers compare the current moment to the bursting of the dot-com bubble two decades ago.
Europe may have lost the battle to create digital champions capable of taking on U.S. and Chinese companies harvesting personal data, but it can win the war of industrial data, Europe's industry policy chief said on Saturday. Vast troves of data from how fast we drive our cars to how much time a robot needs to churn out products in factories have yet to be fully exploited, said Thierry Breton, the European Commissioner in charge of the EU single market.
Microsoft investors cheered when it was awarded a $10 billion cloud contract by the Pentagon, but a temporary injunction threw a splash of cold water on Microsoft's ambitions for cloud dominance.
The U.S. government has never been a model of consistency but lately the inconsistencies—foolish and otherwise—emerging from Washington directed at the tech industry have become truly mind-blowing.
Google is cutting an unspecified number of jobs at its cloud-computing business as part of a reorganization in hopes of enhancing operations and improving its standing in the booming market.
Regulators and presidential candidates are calling out big tech companies, but self-imposed checks could be even more painful for the industry.
Hedge funds bought Amazon and Wright Medical Group in Q4, while they sold out of Microsoft and Zimmer Biomet, 13F filings with the SEC show.
The Dow Jones Industrial Average - that group of 30 blue-chip behemoths with long track records of outperformance - is setting records seemingly every other day.The DJIA has climbed by more than 60% over the past five years on a price basis alone. Add in the dividends - all 30 Dow stocks are dividend payers - and the total return comes to a whopping 85%. The blue-chip average, trading at record levels, has 30,000 in its sights. That would have been unimaginable even half a decade ago.But not all Dow stocks are created equal. Each index component has a solid pedigree. However, their short- to intermediate-term prospects diverge widely, according to Wall Street's analyst community.If you want to pick and choose among the bluest of blue chips, you can look at this full list of 30 Dow stocks that we've sorted by analysts' average recommendation. Here's how it works: S&P; Global Market Intelligence surveys analysts' stock calls and scores them on a five-point scale, where 1.0 equals a Strong Buy and 5.0 is a Strong Sell. Scores between 3.5 and 2.5 translate into a Hold recommendation. Any score lower than 2.5 means that analysts, on average, rate the stock as being Buy-worthy. The closer a score gets to 1.0, the better.Here's a look at how analysts rate all 30 Dow stocks right now - and why. SEE ALSO: 64 Dividend Stocks You Can Count On in 2020
Despite fears mounting from the coronavirus from China, some viable companies have dismissed the bearishness. One of those is semiconductor and technology firm Nvidia (NASDAQ:NVDA). After tumbling in the tail end of 2018, NVDA stock mounted a credible comeback effort the following year. It now looks to continue the ride, even against negative headlines.Source: Hairem / Shutterstock.com Here's the thing about Nvidia. As one of the elite semiconductors, their products are already incredibly valuable. But with a new wave of innovations coming - led by the 5G rollout and its inherent synergies, such as artificial intelligence and automation - the company is almost guaranteed relevance. Therefore, temporary headwinds, no matter how bad they look now, aren't enough to derail NVDA stock.As further evidence, take a look at the organization's results for the fiscal fourth quarter of 2020. Simply put, Nvidia blasted away Wall Street's expectations. Against a consensus target for earnings per share of $1.67, NVDA delivered $1.89. On the top-line sales end, management generated revenue of $3.11 billion against a $2.97 billion target.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome highlights include that EPS was up 136.25% from the year-ago quarter. During the same comparative period, revenue climbed 40.72% higher. In addition, operating income of $990 million represented nearly a 237% lift from fiscal Q4 2019. Finally, the company reported net income of $950 million. * 20 Stocks to Buy From the Law of Accelerating Returns Unsurprisingly, NVDA stock popped up substantially higher during afterhours trading.That's not to say that the coronavirus isn't affecting matters. Management projects a $100 million hit from the outbreak. But the markets have clearly given NVDA stock a vote of confidence.Here are three more reasons to trust Nvidia despite epidemic-related concerns. NVDA Stock Is Simply the Best in ClassOne of the key aspects for Nvidia's resounding and sustained success is not only its dominance in its core markets, but also its commitment to benchmark-setting innovations. Among them, the company's ray tracing capacities for its flagship graphics processing units is a standout attribute.With today's gaming environment, it's no longer just about processing speeds - although that's the bread and butter of the GPU business. Rather, gamers are looking to blur the line between fantasy and reality. That's where ray tracing comes in. Through this next-generation tech, consumers experience subtle nuances in gameplay, such as shadows, opaque reflections, and translucent reflections.However, a "setback" was that not too many gaming titles incorporated ray tracing due to the newness of the technology. But as management highlighted in their fiscal Q4 disclosure, that's rapidly changing thanks to compelling games like "Deliver Us The Moon," "Wolfenstein: Youngblood" and "Bright Memory."Ray tracing is already shifting the paradigm, which bodes well for NVDA stock. And keep in mind that industry experts forecast video games to boom across several countries over the next few years. Just in China alone, the gaming market is projected to hit revenue of $25.3 billion. Nvidia's Innovations Gaining Serious MomentumWhat investors have always respected about Nvidia is management refusing to rest on their laurels. As digitalization trends advanced, the company didn't waste time spectating. Instead, they got out in front, forging a path of their choosing.This initiative continues to pay dividends, especially in the data center and edge computing space. According to their Q4 release, Nvidia unveiled the first scalable GPU-accelerated cloud supercomputer in a partnership with Microsoft's (NASDAQ:MSFT) Azure. Additionally, Nvidia will supply Amazon's (NASDAQ:AMZN) AWS with T4 Sensor Core GPUs to support AWS Outposts, a hybrid cloud computing platform.As well, Nvidia is a huge player in the autonomous vehicles space. In December of last year, management introduced an advanced platform that is significantly more powerful than prior-gen autonomous platforms.While driverless vehicles sound like science fiction, the technologies underlining them are becoming a practical reality. A growing body of evidence indicates that modern automotive safety mechanisms, such as forward collision warning and front automatic emergency breaking, save lives.Currently, such extraordinary mechanisms are additive to the human driver. But the next step is to take the human out of the equation. It's a reasonable step given the pace of innovation. Naturally, this too is a net positive for NVDA stock. Cryptocurrencies Offer an Underappreciated BoostLike most tech firms, Nvidia has considerable exposure to China. Therefore, both the coronavirus and tariffs impose some headwinds to NVDA stock.Nevertheless, Nvidia is one of the few companies that is positioned to directly benefit from the epidemic. Despite my pleas for calm and rational thinking, many investors will inevitably panic. Therefore, the gold price has steadily moved higher since late December on risk-off sentiments.In the meantime, another asset has quietly breached a benchmark level. I'm talking about bitcoin, which at time of writing is trading above $10,000. Moreover, the jump in bitcoin has boosted confidence in many other cryptocurrencies.It's not hard to understand the reason. Bitcoin is this century's gold.This creates a compelling tailwind for NVDA stock. Back during the last bitcoin bubble - which saw the virtual currency flirt with $20,000 - Nvidia's crypto-mining optimized GPUs sold for ridiculous premiums. We could see a similar situation pan out if rising cryptocurrency prices spark another mad run.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 3 Reasons NVDA Stock Will Beat the Coronavirus appeared first on InvestorPlace.
It's likely that no other company has done what Microsoft (NASDAQ:MSFT) has of late. To be sure, there is only one other stock that has done what Microsoft stock has done: reach a market capitalization over $1.4 trillion.Source: Peteri / Shutterstock.com That company, of course, is Apple (NASDAQ:AAPL). But the Apple story is different.Its historic rally has come from a point when the stock actually was cheap by fundamental standards. After a plunge in early 2019, its shares traded at just 12-13x forward earnings expectations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMicrosoft stock did see a sharp decline in late 2018 during the last broad market correction. But even at December 2018 lows, investors still were paying a healthy multiple for the stock. MSFT didn't have a core bearish argument as Apple did, as investors fretted about "commoditization" and pressure on sales in China.The argument over Microsoft stock largely came down to valuation -- and the bulls won. Incredibly, at highs reached earlier this month, the stock doubled in less than 14 months. For a company that was already worth almost $700 billion at the lows, that's an incredible accomplishment. If it weren't for the even faster rally in Apple, it would be unprecedented -- even mind-boggling. * 7 Exciting Stocks to Buy for Aggressive Investors Back near the highs, the argument over the stock again comes down to valuation. And in that context, it's worth noting what truly is unprecedented about Microsoft. Microsoft Runs With the Growth GiantsMicrosoft reported its fiscal second-quarter earnings on Jan. 29, which handily beat analyst estimates. The beat wasn't much of a surprise. Microsoft revenue and earnings have topped Wall Street consensus almost without exception for over four years now.But investors should take a step back from the expectations game and consider just how extraordinary the report was. This is the second-most valuable company in the world. It's a mature business. And it grew revenue 14% year over year, and adjusted net income by 36%.That type of growth from that type of business simply doesn't happen. Increases of 36% in net income are what small- and mid-cap growth stocks provide in good quarters.And even among the market's most valuable companies, Microsoft's numbers look impressive: * Apple drove 9% revenue growth and 11% net income growth in its fiscal first quarter -- but benefited from an easy comparison. Remember, it was slashed guidance for last year's first quarter that led AAPL stock to plunge in early 2019. * Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) increased revenue 17%. Operating income climbed just 13% against a 35% jump for Microsoft. (Alphabet's net income did grow 19%, but that metric is affected by a series of accounting factors.) * Facebook (NASDAQ:FB) drove faster revenue growth, with its top-line rising 25%, but it's obviously a much younger company than Microsoft. Operating earnings rose only 13%, which badly lags the growth rate at Microsoft. * Sales at Amazon (NASDAQ:AMZN) rose 21% in a blowout quarter. Operating income gained 2.4%, thanks to costs from one-day shipping. * Alibaba (NYSE:BABA), purely from a growth perspective, did top Microsoft, with revenue up 38% and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) up 37%. Earnings Are AstoundingTo be sure, some of those companies grew revenue or profits at a faster rate than Microsoft. But they should be growing faster. They are younger companies that are earlier in their development.Indeed, Microsoft was dominating the software industry before most of those companies (save Apple) even existed. And they are the best, most valuable companies in the entire market.It's possible that a company like General Motors (NYSE:GM) or General Electric (NYSE:GE) posted similar growth in a single quarter when they were the market's most valuable company (or second-most) decades ago. But it's likely that kind of growth would have come after the Great Depression or during the postwar period, thanks to either an easy comparison and/or external factors.Whether the specific numbers Microsoft posted in Q2 have been reached or not isn't necessarily the point. Rather, the point, again, is to step back.A mature, dominant company just grew profits 36% year over year. And while it is just one quarter, analyst estimates (which have a strong probability of being raised again) suggest a full-year increase in earnings per share just shy of 20%.Companies don't drive 20% earnings growth in their 45th year in a normal environment. Cyclical names might post those numbers in the recovery from a recession: Exxon Mobil (NYSE:XOM), for instance, grew profit over 50% in 2010, when it was the world's most valuable company. (Incredibly, its market capitalization is now less than 20% that of Microsoft or Apple, a little over eight years after Apple passed Exxon for good.)This is not a cyclical company. There has been no recession. Microsoft doesn't have some soft earnings comparison in fiscal 2020: in fact, adjusted net income rose 22% in fiscal 2019. This is just a massive company driving essentially unprecedented growth. Is Microsoft Stock Too Expensive?The one concern is that the valuation assigned Microsoft stock, too, seems unprecedented. Shares now trade at over 32x the consensus EPS estimate for fiscal 2020 (ending June). The figure is still right at 30x, even backing out the net cash on the balance sheet.45-year-old companies don't grow like Microsoft in normal conditions; they also don't receive price-to-earnings multiples of 30x in normal conditions.And so there are valuation concerns, one reason I argued ahead of earnings that the gains in Microsoft would slow, if remain nicely positive. That was half-right: Microsoft stock already has risen 17% in 2020.But as I wrote before, this market valuation alone has not been a reason to sell. Now, the biggest risk to Microsoft stock seems to be a decline in the market as a whole -- as seen in the fourth quarter of 2018.Investors are not going to decide that the stock is too expensive without making similar calculations for the rest of the market.If investors are going to own U.S. equities, then, Microsoft stock still seems like a strong pick. Yes, the valuation is high. So is the earnings growth. But it's that unprecedented growth that drives the unprecedented valuation.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post There Has Simply Never Been a Stock Like Microsoft Stock appeared first on InvestorPlace.
Intel (NASDAQ:INTC) has seen its value drop precipitously on several occasions over the past two years. In the summer of 2018, it began a steep decline that lasted well into the fall. Last April, Intel stock dropped 25% in little over a month. However, since then, the stock has been on a tear.Source: Pavel Kapysh / Shutterstock.com It's up 50% since last August. Now trading at $67.46, it has posted a gain of nearly 13% so far in 2020 alone -- helped by a big Q4 earnings beat in January.The question is, will Intel continue to shine in 2020? Or is it due for another one of those big corrections? Here are four factors that have the potential to trip up the company's current run.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advanced Micro DevicesAdvanced Micro Devices (NASDAQ:AMD) has been a thorn in Intel's side for the past several years. AMD has been cutting into Intel's marketshare in desktop computer PCs.At CES it unveiled new Ryzen mobile processors that seriously outperform Intel's offerings, and announced that over 100 laptops are already signed up to ship with "AMD Inside" in 2020. AMD has also launched an assault on Intel's data center business.Last fall, the company announced second generation Epyc processors that are now being used in data centers by high profile clients, including Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google. AppleThe last big drop in Intel stock was last April, and it kicked off shortly after news that Apple (NASDAQ:AAPL) was dumping Intel modems in the iPhone in favor of a return to Qualcomm (NASDAQ:QCOM).Rumors have been growing that Apple is planning to dump Intel processors in its MacBooks this fall in favor of its own ARM-designed chips. If that happens, it would be another Apple-induced blow to Intel. If Apple is successful, it could also tempt other PC manufacturers to follow suit. ChinaIntel sees 24% of its revenue generated by the Chinese market. Because of that exposure, it's one of the American chipmakers that saw its stock hit by the launch of the trade war between the U.S. and China in 2018.The company has also benefited from the thawing of trade relations between the two countries, especially since the fall of 2019, when a Phase One trade deal was first announced. However, if the trade war should heat up again, Intel is exposed. Another risk is China's slowing economy, with growth recently nearing a 30-year low. CoronavirusA wild card in the 2020 mix for Intel is the coronavirus from China. So far, it's having an impact on the Chinese economy, and there have been plant closures.Should the coronavirus breakout spread further in China, it could result in PC manufacturers closing factories and halting production, slowing demand for Intel chips. In the bigger picture, if the coronavirus turns into a worldwide epidemic, it could trigger a global recession. That would be bad news for virtually all stocks, including shares of Intel. Bottom Line on Intel StockInvestment analysts polled by The Wall Street Journal are taking a cautious line on Intel stock, giving it a consensus "hold" rating. Their median 12-month price target of $66.41 shows no confidence that Intel stock is going to continue its current gains through 2020. Among the 40 in the group, the highest price target is $85, which represents 26% upside. On the other side of the equation, InvestorPlace Markets Analyst Luke Lango has Intel in his list of Strong Value Stocks for 2020. He notes Intel's "combination of big growth exposure and dirt cheap valuation" will help it to out-perform.What will Intel's story end up being for 2020?AMD is a real threat, but other factors are conjecture at this point. If any of them end up coming into play, Intel could stumble. If they don't, Intel stock could very well continue its growth streak and perform well in 2020. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 4 Reasons Why the Rally In Intel Stock Might Slow Down appeared first on InvestorPlace.
When U.S. companies contemplate major expansions in the Sunbelt, Atlanta’s Midtown continues to emerge as a routine contender to land those projects. In a Feb. 6 earnings call with Wall Street analysts, Colin Connolly, president and CEO of Cousins Properties Inc. (NYSE: CUZ), one of the largest office landlords in the South, cited Midtown Atlanta and downtown Austin, Texas, as two of the region’s most rapidly urbanizing districts.
Shopify is a big winner in 2020. Earnings are booming and the company plans to compete more with Amazon. But is SHOP stock a good buy now?
Advanced Micro Devices shares are getting a bump Friday from RBC Capital analyst Mitch Steves, who lifted his price target to a Street-high $66, from $63, citing yesterday’s better-than-expected results from rival Nvidia.