|Bid||317.54 x 1300|
|Ask||317.58 x 1000|
|Day's Range||317.53 - 323.32|
|52 Week Range||153.66 - 323.33|
|Beta (5Y Monthly)||1.24|
|PE Ratio (TTM)||26.77|
|Earnings Date||Jan 27, 2020|
|Forward Dividend & Yield||3.08 (0.96%)|
|Ex-Dividend Date||Nov 06, 2019|
|1y Target Est||291.65|
Today’s stock market invites an easy comparison with 1999 after the S&P 500 Index has rallied for some 13 months. Some stocks look bubbleicious, but I do not believe the stock market is in bubble territory. Look at many marijuana stocks and you will see what I mean.
History does not always repeat itself in the stock market, but it is always instructive. There is a mania going on in the stock market, but not in the terms you would think. Before you send me hate mail for raining on the parade, remember that The Arora Report gave a signal to buy stocks on Donald Trump’s election when many analysts were saying sell.
The Dow Jones Industrial Average increased more than 22% in 2019 and is already up 2.2% through three weeks of 2020, but it is about to face its biggest test of the young year, and potentially many years.
The stock market, it seems, has been going straight up. This chart shows that stocks are moving up in lockstep with the Federal Reserve printing money. In this situation, what is a conservative investor to do?
After a big holiday disappointment last year, Apple heads into its Tuesday earnings report amid heavy investor optimism for services and iPhones.
DEEP DIVE It’s happening again: The financial media is touting a potential shifting of investors to value stocks from the growth stocks that have propelled the extended bull market in the U.S. This last happened in September and October, though the value buzz ended up being short-lived.
Despite a challenging regulatory environment, growing antitrust scrutiny, ad targeting headwinds, the social media behemoth is poised to announce strong second-quarter results.
Each week, Benzinga will spotlight one of these companies. One of the biggest and best U.S. companies entering the 2020s is Apple, Inc. (NASDAQ: AAPL). Apple was famously birthed in co-founder Steve Jobs’ garage in Palo Alto in 1976.
Amazon has boosted its position as the world’s most valuable brand surpassing Google, Apple and Microsoft, according to a global report.
(Bloomberg) -- Companies in the Nasdaq 100 are headed into earnings season with momentum that approaches the unprecedented, their value up by more than $1 trillion since October.Now the world finds out if the rally made any sense.Twenty-six constituents are due to report quarterly results next week, including three of the four biggest U.S. companies, over one blistering 48-hour stretch starting Tuesday. With trillion-dollar-plus market capitalizations and a doubling in Apple Inc. since 2018 to account for, it’s possible investors will be in a less-forgiving mood than usual.As things stand now, Nasdaq stocks are perched at the highest forward valuation since 2007 and investors are getting progressively less patient with failure. Already this reporting season, companies in the broader market whose sales and earnings trailed analyst estimates have seen their shares pummeled the next day by the most in five quarters.“The market isn’t going parabolic, but some of these tech stocks really have,” said Randy Frederick, a vice president of trading and derivatives at Charles Schwab. “If you miss the bar, you’re going to get punished, no question about that.”A four-day week before the landing of big tech earnings saw the Nasdaq 100 slip 0.4% as stocks wavered amid concern over the spread of a virus that started in China. Seven straight weeks of gains have pushed the index to 23 times its forecast earnings, about 30% higher than its 10-year average. That valuations are stretched doesn’t mean stocks can’t rally further. It does raise the drama headed into earnings season.The latest leg of the bull market has come at a time when overall earnings have stopped rising for most industries -- the reason valuations have swelled so much. While the index rose every quarter of 2019 in terms of price, profits fell in two and are now forecast to contract in a third. Given the Nasdaq surged 38%, investors have obviously been OK looking past those numbers. But any indication that 2020’s expectations are optimistic may be taken poorly by stock bulls.That dynamic is writ large in the tech industry, where earnings have dropped 3% or more in each of the past three quarters. Computer and software makers are expected to post a 0.8% profit contraction in the three months through December. Early returns have been encouraging. Texas Instruments, a bellwether for chip stocks, posted results that topped estimates. Intel Corp. reported sales guidance that came in above industry trends.Despite the recent quarterly hiccups, combined net income of five largest tech companies -- Apple, Amazon, Microsoft, Alphabet and Facebook -- totaled $40 billion in the third quarter, 38% above the same period two years ago.“Multiples have expanded, but quarter-over-quarter these companies continue to grow earnings and that’s the whole key,” said Gary Bradshaw, a Texas-based portfolio manager at Hodges Capital Management, who owns shares of Apple, Microsoft, Amazon and Facebook. “It’s one of the areas in the marketplace where you’re seeing good growth. This isn’t 1999 or 2000 when you were valuating those tech stocks on eyeballs.”The cost of falling short has risen as well. A broader gauge of tech, online retail and Internet services stocks dropped 0.9% the day after reporting a miss on second-quarter sales and earnings per share, data compiled by Credit Suisse show. In the third quarter, the average slump was 6.8%.Apple will release quarterly figures on Tuesday, and analysts are focused on how the firm fared during the holiday season and dealt with uncertainty around tariffs. Microsoft, up 62% since the start of 2019, reports Wednesday. Investors will see whether the demand for its cloud-computing programs remains strong. Facebook, which has rallied 66% over that stretch, reports the same day.“I’d expect a little more leadership out of value-oriented sectors, more economically sensitive parts of the market,” Jeff Kleintop, chief global investment strategist at Schwab Center for Financial Research, said by phone. “I think investors seem to be comfortable with sticking with the leaders that got them here, at least for the time being,”\--With assistance from Wendy Soong.To contact the reporters on this story: Elena Popina in Hong Kong at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dutch pension giant PGGM also initiated a stake in Visa stock in the fourth quarter, and nearly tripled an investment in Microsoft stock.
Wearables demand, iPhone sales and services and installed-based numbers are among the things to watch as Apple reports.
“The Witcher” was watched by 76 million households in just four weeks. It could remake the way TV shows get made.
Stocks fell as the deadly coronavirus spread through China and the world as the Lunar New Year holiday gets underway. A second case of the coronavirus has been found in the U.S.
Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns over the scope of the coronavirus outbreak, capping the S&P 500's worst week in six months. All three major U.S. stock averages turned sharply negative, with the S&P 500 seeing its biggest one-day percentage drop in over three months after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago.
Wall Street analysts are counting on a big holiday quarter for Apple, citing strong sales of the iPhone 11, Apple Watch and AirPods wireless earbuds. Apple stock hit a record high Friday.
Allegations that Amazon.com boss and Washington Post owner Jeff Bezos had his phone hacked by Saudi Crown Prince Mohammed bin Salman have put a spotlight on the security of smartphones and the secretive tools used to hack them. Smartphones are effectively pocket-sized computers that run apps on operating systems such as Apple's iOS or Google's Android. Here is how smartphones can be hijacked and a look at the potential consequences and the thriving market in surveillance vendors helping the world's spies get access to people's secrets.
Apple stock has more than doubled since the beginning of 2019, rallying about 10% already in 2020. The stock has appreciated 32% since the last earnings report.
The Trade Desk (NASDAQ:TTD) started off with a focus on advertising through internet-based platforms. It quickly grew to be an independent force to be reckoned with in the world of buying online advertising. Helping clients to buy and manage digital advertising campaigns on websites and social media sites like Facebook (NASDAQ:FB) has propelled TTD stock to massive 993% growth in value since the company went public in September 2016. For the next stage of growth, the company is looking to one of the hottest categories in tech: streaming video.Source: Shutterstock/ Bella Melo The twist is, The Trade Desk is counting on consumers to be overwhelmed by the sheer number of paid streaming services. As companies launch free, ad-based options to combat "subscription fatigue," The Trade Desk will be there to help clients buy advertising slots. Streaming TV Subscription Fatigue2019 will go down as the year that the battle for streaming TV dollars truly launched. Netflix (NASDAQ:NFLX) faced a flood of new competing services from some of the world's biggest media and tech companies. Notably, last fall Apple (NASDAQ:AAPL) launched Apple TV+ and Disney (NYSE:DIS) launched its Disney+ streaming service. The new services have resulted in fragmentation of content. Consumers can no longer see all their favorite shows on Netflix; if they want to watch Marvel movies, they also need a Disney+ subscription. The Office -- the most popular show on Netflix -- is leaving for Comcast's (NASDAQ:CMCSA) NBCUniversal Peacock streaming service.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith all of these streaming video services, a new term is growing in popularity: subscription fatigue.Consumers signed up for Netflix to escape paying big monthly cable bills. But how many streaming video subscriptions are they willing to pay for before frustration sets in? * 7 Exciting Tech Stocks With International Flair Ad-Supported StreamingMedia companies are betting that consumers will be willing to sit through an ad or two, if it means they can access a streaming service for free. Perhaps the biggest (or at least highest profile) salvo in this new free streaming scheme was launched at the start of this week by NBCUniversal. The company announced its new Peacock streaming service, which will become the exclusive home of The Office, as well as other popular NBC shows including Parks and Recreation and Brooklyn Nine-Nine. Besides the expected paid subscription options, Peacock will be available as a free, ad-supported service for Comcast cable's 20 million customers. This is where there's opportunity for The Trade Desk, and corresponding upside potential for TTD stock. It's what the company refers to as Connected TV (or CTV), and The Trade Desk has a Connected TV service in place, ready to help advertisers buy and manage ads on streaming services. Advertising is already a growing business on Connected TV. Look no further than Roku (NASDAQ:ROKU) for proof. Many of the channels on that platform are free, ad-supported content. That advertising revenue was a primary driver of Roku's stock growth in 2019.In December, while retailers were focused on Black Friday sales numbers, The Trade Desk was tracking ad impressions for various platforms. And according to TTD's numbers, ad impressions for Connected TVs on Black Friday increased 105% compared to 2018.Last quarter, The Trade Desk reported Connected TV ad revenue grew 145% year-over-year. And the company has signed deals with Roku, Disney, Comcast and Amazon (NASDAQ:AMZN). It's a market expected to be worth over $10 billion by 2021, and TTD is there to help clients buy and manage advertising with its Connected TV system. * 10 Recession-Resistant Services Stocks to Buy Bottom Line on TTD StockWill 2020 be the year that The Trade Desk's CTV ad business takes off? And if so, will this have a material effect on the company's bottom line? The Trade Desk is betting this will happen, and its Connected TV system is in place to take advantage of the growing number of free, ad-based streaming video services. Investment analysts aren't entirely convinced. Among those polled by CNN Business, TTD stock is a consensus "buy." However, their median 12-month price target of $292.50 -- an upside of just 4.2% over the current $280.39 -- suggests they don't see that CTV ad business exploding this year. That being said, if free ad-based streaming TV takes off with consumers, it seems like only a matter of time before TTD reaps the benefits.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 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Trade Desk Stock Is Positioned to Ride the Streaming Video Wave appeared first on InvestorPlace.
Wall Street lost ground on Friday as mounting worries over the scope of the coronavirus outbreak overshadowed positive corporate earnings. All three major U.S. stock averages extended their losses after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago. For the holiday-shortened week, all three indexes are on course to post a decline with the Nasdaq set to snap a six-week winning streak.
It's finally here: earnings season.And while positioning through the event can lead to above-average and quicker returns, it can also be very risky business. That's especially relevant in today's "priced-for-perfection" market environment. So, to better guard against those risks, let's look at three recent earnings beats -- also backed by price action and charts -- that are worthy of stronger risk-adjusted positioning.Overall, the reality of how a stock reacts to earnings -- even an earnings beat -- is a crapshoot at best. When it comes to quarterly reports, one plus one often leads to an answer other than two. And if the market is always right, it simply doesn't matter if your calculator, spreadsheets and charts are telling you something different.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe bottom line, and more than ever, is that being selective and investing in stronger risk-adjusted situations matters. It's time to be patient and wait on companies that deliver the quarterly goods, enjoy investor support and only buy stocks with price charts that don't look like a bull on its last legs. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy So, let's take a closer look. Earnings Beats to Buy: IBM (IBM) Click to Enlarge Source: Charts by TradingView IBM (NYSE:IBM) is the first of our earnings beats to buy. The blue-chip tech outfit didn't blast Street estimates, and sales were largely flat year-over-year. However, the company's high-value mix, productivity, improved gross margins and strong free cash flow still make it a name to consider.Additionally, there's other reasons to like IBM stock in today's market. The company delivered surprisingly strong numbers, which suggest a bullish mainframe cycle is just underway. There's also an above-the-market, and well-supported dividend payout of around 4.5% to consider with this earnings beat.Lastly, Wall Street was on board with the IBM's results. And technically, a very large and constructive double-bottom looks ready to clear angular resistance and the 62% retracement level after confirming an uptrend off 2019's bottom.Overall, this earnings beat is a buy on a modified breakout above $145. I'd suggest a stop-loss below $134, as that's sensible on the wallet and the price chart. On the upside, taking partial profits near $170 and pattern highs is an equally smart business decision. Logitech (LOGI) Click to Enlarge Source: Charts by TradingView Logitech (NASDAQ:LOGI) is our next earnings beat to buy. The Swiss-based computer hardware giant topped consensus views on the back of solid demand for the company's gaming gear, PC peripherals and video-conferencing products.The report showed LOGI stock is clearing tough 2018 comps tied to that year's Fortnite frenzy. What's more, sales of simulation gear are growing strongly for Logitech -- and its recent Streamlabs acquisition puts the company in the center of the increasingly popular live-streaming market.Investors have been hitting the buy button on their gaming consoles this week, and now it's time to join them. * Forget Lockheed Martin, Buy These 5 Smaller Defense Stocks Instead Technically, shares of this earnings beat have just cleared a corrective cup-shaped base to new all-time-highs. I'd set a price target of $60 based on a conservative measured move out of the pattern. And to ensure protection against larger potential losses, an exit below $46 would be a no-brainer. Netflix (NFLX) Click to Enlarge Source: Charts by TradingView Netflix (NASDAQ:NFLX) is the last of our earnings beats to buy, as the report wasn't without its flaws. Furthermore, disappointing guidance, slower-than-expected subscriber growth in Netflix's North American market and competition fears helped bears and profit-takers put together a decline of about 4% in the immediate aftermath. But, at the end of day -- literally and figuratively -- things are looking up for NFLX stock.The fact of the matter is the subscription video on demand (SVOD) giant surpassed earnings and sales forecasts in the face of new streaming platforms rolled out by Disney (NYSE:DIS) and Apple (NASDAQ:AAPL). Moreover, global gains are where NFLX stock's future growth lies. And the company continues to deliver, demonstrating its value-add proposition for its subscribers over the competition.Technically speaking, this earnings beat is also looking up. Aside from investors backing away from their initial impression of the report, NFLX stock has formed a solid-looking weekly hammer candlestick. With the pattern well-positioned to clear channel and 62% resistance within Netflix's larger W-base structure, a momentum entry looks increasingly attractive.For positioning in Netflix stock, I'd suggest buying on strength as shares breakout above $360. Look to take some risk off the table in-between $400-$425 for obvious reasons. And with the week coming to a close and investors showing their hand, a stop-loss below $334 looks like sufficient leeway off and on the price chart for this earnings beat.Investment accounts under Christopher Tyler's management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post 3 Earnings Beats to Buy As Another Huge Week Approaches appeared first on InvestorPlace.
Apple (NASDAQ:AAPL) is up 110% in a year, which is four times the performance of the S&P 500. So opinions are mixed at these levels and both the bulls and the bears make good points. On the one hand, it has run up so much and so fast that it could correct. On the other hand, the fans would argue that the move in Apple stock is justified and investors have righted a wrong. They would argue that it is now more in line with the likes of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Facebook (NASDAQ:FB).Source: Primakov / Shutterstock.com Both are right to a degree, but neither are completely correct.Luckily there are ways to trade AAPL stock into its earnings by betting against both extreme sides. Both sides should temper their stances because somewhere in the middle lies the truth. It is still cheap in absolute terms even though it is now much more expensive relative to its own history. It now sports a price-to-earnings ratio of 29 and sells at 6 times its sales. This is 40% higher than recently typical. But this may be the new norm going forward as they diversify and shift income streams.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn a prior write up I suggested waiting for better entry points and I reiterate it. I am merely calling for patience for new entrants into the stock. But there are other ways to trade it even ahead of the earnings uncertainty and without immediate risk. Using the options markets, I can bet that AAPL stock has an upside limit. But at the same time, I bet that it won't completely collapse because it also has a floor. Depending on investor time frames I can do this for the whole year if I want. Bet Against the Extreme Opinions in Apple StockTo the committed bears, I acknowledge that the company has run up far and fast. And yes, it is vulnerable to corrections but nothing outside of the normal pullback. Meaning that it won't fall into an abyss alone. Dips are necessary to shake off the newest bulls who are weak hands. So to put that statement into a trade, instead of buying shares, an investor sells the July $240 put and collects $4 per contract. If price stays above the strike they retain maximum gains. * 7 Healthcare Stocks With 100% Street Support Conversely, I see the staunch bulls' point of view. To that I say that Apple has upside but it will not be above $390 by the summer. To trade this thesis, I can also sell the July $390 call and collect $4 per contract. To win, I need the price to stay below my call. The net outcome of both trades is being short an Apple stock strangle, which is a self-hedged trade. The breakeven lines are at $232 and $398.The main message today is to encourage investors to use logic. It is dangerous to assume that experts know best. Today, retail investors have enough tools and resources to form their own opinions. Those who blindly followed the Goldman Sachs downgrade of Apple's price target to $165 and sold Apple in fear missed out on $105 of upside.Often enough, the expert headlines are pure noise that are likely to cause mistakes more so than help. The facts are simple for Apple. They sell out of every widget they make, so in the long run they are winning. By definition, every dip is a buying opportunity. Investors have varied time frames, so the size of the dip is not one size fits all. And that's where a little homework on the charts provides guidance. The Road to Promising Gains Isn't Without RiskSource: Charts by TradingView The big breakout in Apple stock happened from around $270 per share. So 18% later it left a lot of mini levels that it might revisit on the way down. Stocks need to retest prior breakout necklines for footing. The first of these is around $310 per share. If that fails, then $305 and $300 are next; $293 and $285 were also important on the way up, so they will provide support on the way down. The zone around $268 per share was also where the breakout accelerated sharply, so it too would make for potential support. The volume profile point-of-control for the last three months is around $265 per share.For the long term it is futile to try and find the absolute perfect time to buy. So at some point the investors need to decide on how long they are willing to wait for profits and choose the appropriate level to buy. If my intention is to own Apple stock for years, then I am not rushed to buy it, especially not while going into its earnings on Tuesday. The short-term reaction to those is binary. We don't know what they will say or how the traders will react to the report. So it is better to wait them out or take a partial entry and leave room to manage the risk on dips if and when they come.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post The Best Way to Approach Apple Stock Before Earnings appeared first on InvestorPlace.