(AFP) WASHINGTON – Wall Street stocks tumbled again Friday following a plunge in Netflix shares that sent the Nasdaq further into correction territory, spurring questions of just how far the market will fall. After a bruising session on European bourses, all three major US indices fell, led by the Nasdaq which lost 2.7 percent on Friday alone. The tech-focused index is down about 15 percent since its November record, midway between the 10 percent loss considered a correction and nearing the 20 percent drop that qualifies as a “bear market.” “We’re still pretty far from a bear market, but if we start to see signs that higher interest rates are slowing the economy, you could easily pass from a correction to a bear market,” said Gregori Volokhine of Meeschaert Financial Services. Friday’s session was dominated by the spectacular fall in Netflix, which ended with a loss of more than 20 percent after it projected it would add only 2.5 million subscribers in the first quarter of … [Read more...] about US stocks fall again, sending Nasdaq nearer to dreaded ‘bear’ market
Bulls and bears stock picks
Share to Twitter Share to Linkedin The Chicago Bulls surprised plenty of people when they selected Patrick Williams fourth overall in the 2020 NBA Draft. But with the Bulls struggling through a rebuild, it made sense to take a chance on a high-upside player who was one of the youngest players in the draft, with there seemingly being plenty of time to develop him. Fast forward to the beginning of 2022, and everything has changed for Williams and the Bulls. After starting in all 71 of his appearances in 2020-21 and showing flashes of his potential, Williams was quiet in five starts this season before suffering a nasty wrist injury that could keep him out the rest of the season. There’s still a chance the 20-year-old returns , but the Bulls shouldn’t count on anything when it comes to him. Meanwhile, Chicago has run out to a 25-10 record to hold the first spot in the Eastern Conference. This Bulls team looks ready to contend right now and should be a buyer … [Read more...] about Chicago Bulls Have Patrick Williams Decision To Make At 2022 NBA Trade Deadline
Share to Twitter Share to Linkedin Luminar stock , a company that develops lidar sensors for use in self-driving cars, has declined by roughly 15% over the last week (five trading days), underperforming the S&P 500 which was down by about 4%. The stock also remains down by about 17% over the last month. There are likely a couple of factors driving the recent sell-off. Firstly, Luminar issued about $550 million worth of convertible debt last month, while buying back around $250 million of its stock. It’s possible that investors are a bit concerned about these transactions given that the company hasn’t started meaningful commercial operations yet, with profitability and positive cash flows likely several years away. Separately, electric vehicle stocks, in general, have underperformed the market in recent weeks, due to rising bond yields and this could also be hurting Luminar. For perspective, EV bellwether Tesla stock is down by about 17% year-to-date in 2022. … [Read more...] about Why Luminar Stock May See Lower Levels Going Forward
At the Motley Fool, we have a free service called Motley Fool CAPS. In CAPS, you pick the stocks you think will beat the S&P 500 Index (also known as "the market"). In my case, 57% of my stock picks in CAPS beat the market, which means that 43% of my stock picks fail to beat the market. In essence, I am wrong 43% of the time. That's a spectacular failure rate. If I did that in school, I would get an F on my report card. And yet in CAPS I am in the top 1% of stock pickers. So that's fascinating, right? How can I be wrong so often and still crush the market? The main reason is the miracle of compound returns. In a year, one of my stronger stock picks might double or triple. That's a gain of 100% or 200%. But over time, if a stock continues to outperform, the rewards escalate. It might go up 1,000% or 10,000% or 30,000%. And what happens is that your investment in this winner (if you don't sell along the way) becomes larger and larger on a dollar basis. image source: Getty … [Read more...] about You Can Buy a Lot of Bad Stocks and Still Get Rich
Share to Twitter Share to Linkedin Teradyne (NYSE: TER) , a company that develops automatic test equipment focused on the semiconductor, industrial automation, and wireless industries, gained about 5% over the last week and by about 4% over the last month, compared to the S&P 500 which remained roughly flat. Teradyne stock also remains up by a solid 45% over the last quarter. There are a couple of factors likely driving the recent rally. Firstly, demand for the company’s products and services is rising following the Covid-19 lockdowns. For instance, the semiconductor testing business is seeing higher traction driven by demand for mobile applications processors and RF chips, while the industrial automation business also sees rising sales of its robotics products as the capex cycle across industries picks up. Over Q3 2021, the company posted a stronger than expected set of earnings with revenue rising 15% versus last year and adjusted EPS growing 35%. … [Read more...] about Despite Recent Rally, Teradyne Stock Is Still Worth A Look
Last time, I kicked off my video series about the best semiconductor stocks for 2022. If you missed the first video in the series, here are picks six through 10 . Today, I cover my top five semiconductor stocks to buy now. As I mentioned previously, I believe semiconductors are the new oil. Every secular tailwind you can think of involving disruptive innovation requires semiconductors. Consider these disruptive technologies: Data centers Cloud computing Cybersecurity Space exploration Video gaming Online gambling Augmented reality (AR) Virtual reality (VR) Mixed reality (MR) Autonomous driving Electric vehicles Genomics Esports 5G E-commerce Cryptocurrency Artificial intelligence (AI) The metaverse Big Data What do all these growth trends have in common? They all require semiconductors. So which stocks are the best to own? In today's video, I discuss my top five semiconductor stocks. Stock pick No. 1 has to be Nvidia ( NASDAQ:NVDA ) … [Read more...] about Best Semiconductor Stocks to Invest in for 2022 (Part 2 of 2)
Share to Twitter Share to Linkedin MercadoLibre’s stock (NASDAQ: MELI) declined by 7.2% in the last twenty-one trading days. In comparison, the broader S&P500 index fell by only 1.2% in the last twenty-one trading days. MercadoLibre operates online marketplaces dedicated to e-commerce and online auctions in Latin America, and saw its stock fall after Jefferies downgraded it due to the high macro uncertainty in Brazil which is its largest revenue base (55% to 60%). Now, is MELI stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 54% chance of a rise in MELI stock over the next month (twenty-one trading days). See our analysis on MercadoLibre’s Stock Chance Of Rise for more details. Five Days: MELI 3.4%, vs. S&P500 -0.3%; Outperformed market (30% event probability) MercadoLibre’s stock rose 3.4% over a five day trading period, compared to the broader market … [Read more...] about MercadoLibre’s Stock Down In Last Two Weeks, Is It A Good Pick?
What are the best semiconductor stocks for 2022 and beyond? The semiconductor shortage was big news in 2021, but with so many different companies in the semiconductor sector, it can be challenging to know which are the top stocks to buy now. As I have discussed previously, I believe semiconductors are the new oil. Think about it for a minute. Consider all the secular growth trends and disruptive innovations we are experiencing and will continue to experience over the next decade. Here are several to consider: Data centers Cloud computing Cybersecurity Space exploration Video gaming Online gambling Augmented reality (AR) Virtual reality (VR) Mixed reality (MR) Autonomous driving Electric vehicles Genomics Esports 5G E-commerce Cryptocurrency Artificial intelligence (AI) The metaverse Big Data What do all these growth trends have in common? They all require semiconductors. So which stocks are the best to own? In today's video, I discuss my … [Read more...] about Best Semiconductor Stocks to Invest in for 2022 (Part 1 of 2)
Share to Twitter Share to Linkedin Our theme of Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for Apple’s iPhones and other iDevices, has remained roughly flat year-to-date in 2022, compared to the broader S&P 500 which remains down by about -4%. Over 2021, the theme gained about 17%, underperforming the broader market which gained about 27% over the same period. So what does 2022 hold for Apple supplier stocks? While high-growth technology stocks, in general, have seen some weakness, due to rising bond yields and the Federal Reserves’ hawkish stance, Apple supplier stocks could benefit from the fact that they trade at relatively lower multiples versus other tech stocks (P/S of about 4.7x). Moreover, the semiconductor shortage, which hurt the broader consumer electronics industry, could also ease a bit this year, potentially helping these stocks. That being said, demand for these companies is heavily … [Read more...] about Will Lower Multiple Tech Stocks Do Better In 2022?
Share to Twitter Share to Linkedin General Electric is scheduled to report its Q4 2021 results on Tuesday, January 25. We expect GE stock to see little movement due to mixed Q4 with revenues beating consensus estimates, but earnings falling short. The overall economic growth likely bolstered the revenue growth in Q4, but with the spread of Omicron, and continued supply chain issues may have adversely impacted the margin growth. That said, our forecast indicates that GE’s valuation is $118 per share, which is more than 15% above the current market price of $102, implying that the stock has more room for growth, in our view. Our interactive dashboard analysis on General Electric’s Pre-Earnings has additional details. (1) Revenues expected to be above the consensus estimates Trefis estimates GE’s Q4 2021 revenues to be around $23.2 billion, reflecting a 6% y-o-y growth, and it is 7% above the $21.7 billion consensus estimate. While GE’s aviation … [Read more...] about How Will General Electric Stock Trend Following Q4 Earnings?