Magical Trade
Tuesday, October 3, 2023
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Magical Trade
No Result
View All Result
Home Trade News

Why Apple was the only tech stock that went up on Tuesday

by
November 30, 2021
in Trade News
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Apple stock closed up 3.1% on Tuesday as other stocks tumbled on concerns of the new omicron Covid variant, showing investors see the company as a safe haven during market uncertainty.

Other large-cap tech stocks like Google, Amazon, Meta (formerly Facebook) and Microsoft closed down for the day amid a broader market selloff. The Dow Jones Industrial Average dropped 651 points, the tech-heavy Nasdaq composite fell 1.6% and the S&P 500 was down about 1.9% on Tuesday after Federal Reserve Chairman Jerome Powell said the Fed will discuss speeding up the bond-buying taper during its December meeting.

RELATED POSTS

Does Putting Your Home in a Trust Protect It From Medicaid?

Top CD Rates Today: 10 CDs Pay 5.75% or More for 6 to 17 Months

Needham analyst Laura Martin told CNBC that investors turned to Apple on Tuesday because the company has prodigious cash flow, allowing it to endure any slowdowns in the economy and take advantage of falling prices.

“There’s a flight to quality with companies that you know will weather the storm, not go bankrupt, not have financial distress,” Martin said, noting that other large-cap tech stocks aren’t down as much as smaller firms.

Martin added Apple is positioned to introduce new products to power new growth, including a headset.

“The biggest criticism of Apple for the last five years is no new products. When you look at the product pipeline, lots of excitement there, especially in the press today about how they’re going to introduce augmented reality glasses at the next WWDC in June,” Martin said.

Martin said there are indications that Apple’s current products, especially its iPhone Pro models, are selling well, potentially leading to a big December quarter for the company. Apple said in October it expected record revenue in its fiscal first quarter, over last year’s $111.4 billion in sales, despite supply constraints.

“Lots of really good numbers coming out of retail about how the products are selling. Tablets, especially the high-end iPhones, all of which says they’re going to have high margins and high revenue for the fourth quarter of this year,” Martin said.

Apple uses its cash flow not only to invest in new products but to return capital to shareholders through dividends and buybacks, the latter of which can help keep the stock price stable. And Bernstein analyst Toni Sacconaghi said in a note to investors earlier this month that he expects Apple to continue repurchasing shares over the next five years.

“Our analysis suggests that Apple is likely to be able to continue repurchasing ~ 3-4% of its shares per year until the end of 2026 while growing its dividend per share by 10% annually without taking on net debt on its balance sheet,” Sacconaghi said in a Nov. 17 note to investors.

Shares of Apple are up about 25% for the year.

ShareTweetPin

Related Posts

Does Putting Your Home in a Trust Protect It From Medicaid?

by
October 3, 2023
0

Top CD Rates Today: 10 CDs Pay 5.75% or More for 6 to 17 Months

by
October 3, 2023
0

Market Update: BDX

by
October 3, 2023
0

Analyst Report: Becton, Dickinson And Co.

by
October 3, 2023
0

Is Trade Ideas The Best Stock Research Website? Unraveling Its Potential

by
October 3, 2023
0

Next Post

Stock futures rise ahead of first trading day of December after omicron fears dent markets

CNN suspends Chris Cuomo indefinitely over role in advising brother Andrew during harassment scandal

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Fund manager believes FAANG is dead — says now it’s all about MANTA

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Bank of America names its top global tech stocks — including one it says has upside of 100%

    0 shares
    Share 0 Tweet 0
  • This idiot-proof portfolio has beaten traditional stocks and bonds over 50 years

    0 shares
    Share 0 Tweet 0
  • Interactive Brokers’ Thomas Peterffy sees the stock market dropping another 15% from here

    0 shares
    Share 0 Tweet 0
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.magicaltrade.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.magicaltrade.net