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Among other things, Nvidia produces graphics processing units (GPUs) that are essential to the video game industry and are used to mine cryptocurrencies. The company also produces chip sets that power everything from robotics to self-driving cars. As all of these AI-adjacent industries are hot growth areas, Nvidia seems likely to continue at its torrid pace. In the last few quarters, the e-commerce stock has been dealing with a much more challenging environment than it faced in the height of the pandemic. Under these circumstances, growth has slowed, and Shopify has had to take measures to cut costs.

Valuable Stocks That Could Be the Next Apple or Amazon

In late November, Morgan Stanley issued a note to investors highlighting that Apple is planning to launch a new hardware product, in particular an augmented reality/virtual reality (AR/VR) headset. Apple analyst Ming-Chi Kuo is estimating that the headset could launch during the fourth quarter of 2022. Apple’s entrance to the metaverse looks even more likely as a new Bloomberg report suggests that the company hired Meta Platforms’ (META 0.43%) augmented reality communications lead. Despite weaker than anticipated iPhone 13 demand, the company is not anchoring itself on one singular product release. Apple is investing in new product development and investors should expect to see these materialize in 2022. Namely, the company is set to launch its iPhone SE 3 during the first half of 2022.

Apple (AAPL) Earnings Date, Estimates & Call Transcripts

However, the stock gave back some of those gains in the following sessions due to a broader market pullback and reports of lower iPhone shipments. I’d bet on the cybersecurity specialist’s stock significantly outperforming Apple’s over the next five years and believe it has the makings of a huge winner for long-term investors. Crucially, the long-term demand outlook for cybersecurity services remains very promising. High-performance AI-powered software will be needed to combat next-generation threats, and CrowdStrike looks perfectly positioned to capitalize. Apple has been an incredible performer through the years, and there’s a very good chance it will continue to be one of the world’s most profitable companies. But investors should also keep their eyes open for other big opportunities in today’s market.

AAPL Estimated and Actual Revenue by Quarter

However, Apple’s entrance into the metaverse could open up another multi-billion dollar opportunity for the company as it looks to steal market share away from Meta and other incumbents. Per IDC’s forecast, the market for AR/VR headsets will increase from 9 million units in 2021 to 50 million by 2025. The company has guided margins of between 41.5% and 42.5% for Q3, which is reasonably high, considering that FY’Q3 is typically a seasonally weaker quarter compared to FY’Q2.

If everything went just right: Meta Platforms

So what could be the financial impact of Apple reducing commissions across the board? If Apple reduced commissions to say 20% from 30%, it would reduced total commissions by about $7 billion to roughly $13 billion. Although the revenue impact would be limited for Apple (under 3% of Apple’s Total Revenue) the impact on profits would be more pronounced given that commissions are likely to be almost entirely profit. We estimate that Apple’s Operating Income would be about 10% lower if commissions were reduced, considering Apple posted about $64 billion in Operating Income in FY’19.

And it has seemingly unlimited resources to do it – Facebook stock has nearly tripled since 2015, and it earned over $70 billion in revenue in 2019 alone. That’s still shy of Apple’s $260 billion that same year, but even Apple needs Facebook and Oculus to survive. You won’t find a more ravenous customer base than those of Apple, and collectively they drove AAPL stock price through the roof. After taking a big hit to its multiple at the end of 2021 and the beginning of 2022, Nvidia’s stock went on a tear and powered its way to a new all-time high, even briefly cracking the trillion-dollar barrier. The company has since stepped back, with Zuckerberg signaling that the business would put more focus back on its advertising business, which actually makes money. “Our checks indicate that all 4 new models of iPhone this year could be launched with the same application processor (A18) that can enable improved AI/machine learning performance,” Mohan said.

As of the time of this article, Apple is the largest company in the world by market capitalization, closing in on a valuation of $3 trillion. For the fiscal quarter ended Sept. 25, Apple reported 29% revenue growth year over year. The company generated 33% growth on the product side of the business driven by strong iPhone sales, and also reported 26% growth in services while wearables grew 13% year over year.

Even though social media stocks have been exceptionally volatile of late, Meta is the clear leader in the industry. Its social destinations (Facebook, WhatsApp, and dowmarkets Instagram) are consistently among the most downloaded. When the first quarter came to a close, Meta’s family of apps counted 3.64 billion monthly active users.

Notably, the iPhone 15 Pro Max’s lead times are the longest seen for any model launched in the past seven years. Meanwhile, the iPhone 15 Pro’s lead times currently stand at 35 days in the US and 36 days internationally, tying the record for any Pro model ever launched. Additionally, except for the supply-affected iPhone 13/13 mini, the current lead times for the iPhone 15/15 Plus exceed those seen for all other base models.

It’s valued at an impressive $15 billion and has been listed for the past three years on CNBC’s Disruptor 50 List of fast-growing companies. Ginkgo is pushing the field of biology toward the engineering industry, and has labeled itself “The Organism Company” with the mission to program cells like we have been programming computers. Drawing comparisons to Apple, Kelly broke https://forex-reviews.org/ down the Ginkgo vision for me, where Ginkgo aims to serve as the horizontal platform for synthetic biology products (much like the App Store on Apple devices). Ginkgo does not bring products to market, rather they work with companies to develop the desired synthesized DNA code and then charge a royalty when the physical good produced from that code is made available.

Incidentally, many believe that the world’s first trillionaire could also be from the clean energy sector as countries pour billions of dollars to hasten the green energy transition. Looking forward, tech and green energy look like the two most promising industries for the next two decades. In green energy, we have EV (electric vehicle) companies as well as renewable energy companies.

AI chips have been a major catalyst for semiconductor companies like Advanced Micro Devices and could help rejuvenate interest in consumer electronics. The COVID-19 pandemic pulled forward demand for Apple’s products, which boosted short-term results but led to sluggish growth in recent years. Apple needs a defining product characteristic for the next upgrade cycle since marginal product improvements haven’t been enough to spur demand meaningfully. Embedding more AI capabilities into the iPhone would be the natural way to help Apple return to growth. And while CrowdStrike is unlikely to come close to Apple’s valuation any time within the next decade, that could actually work to the advantage of growth-focused investors seeking explosive gains. The cybersecurity specialist’s valuation is already squarely in large-cap territory, but the business is still growing sales and earnings at a rapid pace.

International Data Group (IDC) reported that Apple’s iPhone shipments fell nearly 10% in the first quarter of 2024. Apple has so far been able to offset slower demand out of China with rising or flat demand in North America and emerging markets. However, investors got a much-needed vote of confidence on April 11 when reports surfaced that Apple was nearing the production of computer processors with AI capabilities. On April 11, Apple (AAPL -0.35%) stock popped 4.3% in a single session, the largest jump in nearly a year.

Nvidia has exposure to high-growth themes like autonomous vehicles, gaming, metaverse, and blockchain. It has been growing much faster than its peers and markets rewarded it with premium valuations. Nvidia is also an innovation leader, which makes it a worthy contender to become the next Apple stock. The current pandemic has been pivotal in showcasing the importance of synthetic biology and DNA manipulation. Some analysts even expect Samsung will see huge gains next year based on smartphone and TV sales alone, despite the company’s memory chip business being in a slump ending the year. Of course, this isn’t expected to last long, and the company has the resources to rebound quickly, thanks in part to the geopolitical heat facing Chinese rival Huawei.

The new iPhone 12 handsets saw their first full quarter of sales over Q2 FY’21, helping iPhone revenue rise 65% compared to last year. The iPhone is Apple’s most profitable hardware product and the new handset is also priced at a premium compared to its predecessors, helping margins. For example, Apple says that it has about 660 million paid subscriptions on its platform now, marking an increase of 145 million compared to last year.

Apple is the world’s largest company, but there might be better growth opportunities available for AI-focused investors. This pay-to-play conversion ratio is many multiples higher than the industry average. At the moment, Sea’s gaming division, known as Garena, is the only segment producing positive earnings before interest, taxes, depreciation, and amortization (EBITDA). Mobile game Free Fire has been a global hit, with close to 616 million people actively playing it and other mobile games during the first quarter. If the metaverse ultimately matures faster than expected, and Meta Platforms becomes one of the on-ramps to virtual and augmented reality, it could have a clear path to overtake Apple.

Back in 1999, the 10 largest publicly traded companies by market cap included the likes of Lucent Technologies, Nokia, ExxonMobil, General Electric, and Intel. Only Microsoft, which was the largest publicly traded company in 1999, https://broker-review.org/etoro/ remains in the top 10 today. After overseeing $10 billion in gross merchandise value (GMV) traverse its e-commerce platform in all of 2018, the company oversaw $17.4 billion in GMV in just the first three months of 2022.

This dynamic presents a conundrum for investors because Apple is generating healthy growth on both the products and services sides of its business. However, given the stock’s year-to-date performance coupled with lingering concerns around inflation, it tempting for investors to trim their existing positions and lock in some gains. Considering the company revised its forecast for iPhone 13 downwards and the supply chain disruptions it is facing, it’s hard to assess whether Apple has any upward momentum that could push the stock higher. Apple is commanding strong growth across its entire suite of revenue streams from services, wearables, and other hardware products. Apple’s 2021 Revenues are projected to jump by a solid 21%, per consensus estimates, likely growing faster than Apple’s cost base. Moreover, the full impact of the new iPhone 12 is only likely to be seen in the coming quarters, as production picks up and the devices see full quarters of availability.

1. The market has witnessed significant sell-offs in many growth stocks over the last several weeks.
2. Apple is a buy for patient investors, but the stock could face pressure if its AI investments fail to deliver.
3. Apple’s Worldwide Developers Conference from June 10 to June 14 and its annual new product unveiling event in September are the two marquee events this year.
4. You won’t find a more ravenous customer base than those of Apple, and collectively they drove AAPL stock price through the roof.
5. But for investors who are looking for stocks that can match or exceed the market-crushing performance that Apple has delivered over the last half-decade, I believe the cybersecurity specialist stands out as a great pick.

The primary issue is that Apple’s earnings have stalled and growth has ground to a halt. For a variety of reasons, I think there’s a very good chance that Microsoft will exceed its rival’s valuation in the near future and enjoy a sustained run as the world’s most valuable company. Enter your email address below to receive the latest news and analysts’ ratings for Apple and its competitors with MarketBeat’s FREE daily newsletter. Put another way, over half the adult population in the world interacts with a Meta-owned asset each month. That’s plenty of incentive for businesses to pay top dollar to get their messages in front of users. These fast-paced, innovative businesses have the tools to dethrone the tech kingpin in less than two decades.

For its earnings next week, Bank of America expects Apple to beat Wall Street’s estimates and predicts the company will report $1 billion in revenue from sales of its Vision Pro. Finally, Mohan said that Apple’s profit margins have considerable upside as the company develops chips in-house, lowering its component costs, and as it reduces its reliance on public cloud providers. Mohan also said that Apple’s Services business is poised to see strong revenue growth thanks to its Licensing, App Store, iCloud, and subscription offerings like Apple TV+ and Apple Music. With the growth narrative out the window, at least for now, Apple is starting to look more like a value stock. It is the cheapest “Magnificent Seven” stock in terms of price-to-earnings and price-to-free-cash-flow ratios. For starters, it trails Apple by a mile in valuation ($46.4 billion market cap vs. Apple’s $2.42 trillion).