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iShares Trust S&P Global Information Technology Sector Index Fund

MSFT

Citigroup analyst maintains Microsoft with a Buy and lowered price target from $480 to $475, expecting strong Azure growth, while BofA analyst reiterates Buy with $480 target.

Microsoft&#39;s Strategic Emphasis on AI and Cloud Services Signals Strong Future Performance: Analysts

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Long Ideas

Social Media

Opinion

CELH

FLNC

NVDA

PLTR

QQQM

SOFI

Young investors on Reddit&#39;s r/stocks are tapping into the wisdom of the crowd to find potential growth stocks, including FLNC, PLTR, NVDA, CELH, and SOFI. ETFs like VUG, VGT, and QQQM also offer diversification and growth opportunities.

Top 3 Growth Stocks For 2024 And Beyond: &#39;I Have a Pretty Long Runway Because Of My Age,&#39; Says Redditor

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Movers

AAPL

The BofA analyst reiterated a Buy rating for Apple Inc (AAPL) with a price target of $225. He believes the company&#39;s gross margins will continue to improve due to its product and service mix.

Apple Eyes Higher Profitability, Premium Mix and In-House Technologies Drive Margin Boost: Analyst

VGTel Inc

Citigroup&nbsp;analyst Tyler Radke maintained&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Buy and lowered the&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MSFT/analyst-ratings" rel="noreferrer noopener">price target from $480 to $475</a>.
The analyst remained positive on Microsoft ahead of third-quarter results as his quarterly inputs point to strengthening Azure growth trends boosted again by AI services, with solid CoPilot interest, though more bite-sized deals initially.&nbsp;
Radke&#8217;s strong inputs and a more positive PC backdrop against conservative guidance should yield room for upside across key KPIs (including Azure, which should reaccelerate), while he expects continued cost discipline to drive strong EPS upside.&nbsp;
BofA Securities&nbsp;analyst Brad Sills reiterated a Buy rating on Microsoft with a price target of $480.
Following a round of calls with nearly a dozen key Microsoﬅ partners, the analyst expects a healthy 1% upside to his third-quarter revenue estimate of $60.5 billion, stemming from sustained strength in Azure and M365.&nbsp;
The analyst expects FX to provide a 50bps tailwind to revenue growth, primarily in line with expectations heading into the quarter.&nbsp;
He expects a 1% upside to his estimate for Azure growth of 28.0% cc, given positive system integrator partner feedback suggesting stable, healthy migration of new workloads to the cloud platform, relative strength in the Microsoﬅ security stack, and ramping usage of Azure AI and Microsoﬅ security stack.
Sills expects a $220 million upside to his PBP segment revenue estimate to $19.5 billion from better Commercial Office growth, driven by better ASP (average selling prices) on sustained E3/E5 strength and early traction with M365 copilot. Channel feedback suggests some uptick in Copilot activity, primarily in the pipeline, but also early adoption.&nbsp;
The analyst expects $50 million of downside to his MPC revenue estimate of $14.9 billion, driven by weaker PCs in the calendar first quarter.&nbsp;
IDC reported preliminary first-quarter PC growth of +2% Y/Y versus its prior expectation for +4% Y/Y when Microsoﬅ provided guidance.
Sills noted that the next AI catalyst for Microsoﬅ shares will prove that critical AI-related product cycles are gaining traction via incremental growth metrics such as M365 Copilot users or via accelerating Commercial Office ASP (from 6% to 7%). Microsoﬅ&#8217;s shares are pricing in AI-driven revenue and FCF acceleration, per the analyst.&nbsp;
However, he noted the multiple holding with an AI cycle that is gaining momentum given the scale of the AI opportunity (IDC sizes the AI market to $944 billion by 2027). As per Sills, the stock should then compound at the FCF growth rate, accelerating toward the low 20s, with incremental contribution from AI in the coming quarters. The analyst noted Microsoﬅ as a top pick in soﬅware.
Microsoft stock gained over 40% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Action: MSFT shares traded lower by 1.5% at $405.40 on the last check Thursday.
Also Read: <a href="https://www.benzinga.com/news/24/04/38294517/linkedin-unveils-premium-pages-new-subscription-plan-offers-exclusive-growth-tools-for-small-busines" target="_blank" rel="noreferrer noopener">LinkedIn Unveils Premium Pages, New Subscription Plan Offers Exclusive Growth Tools For Small Businesses</a>
Photo via Shutterstock

Microsoft's Strategic Emphasis on AI and Cloud Services Signals Strong Future Performance: Analysts

In the quest for lucrative investment opportunities, young investors on Reddit&#8217;s r/stocks are tapping into the wisdom of the crowd. Redditor werewere223 kicked off a conversation by stating, &#8220;I have a pretty long runway because of my age, and I&#8217;d like to focus on growth as of now,&#8221; and asked for growth <a href="http://benzinga.com/money/best-growth-stocks">stocks to consider.</a>
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<blockquote class="reddit-embed-bq" style="height:316px" ><a href="https://www.reddit.com/r/stocks/comments/1c12x9s/growth_stocks_for_2024_and_beyond/">Growth Stocks for 2024 and beyond?</a> by<a href="https://www.reddit.com/user/werewere223/">u/werewere223</a> in<a href="https://www.reddit.com/r/stocks/">stocks</a></blockquote>
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Also Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37596823/apple-and-4-more-stocks-on-the-rise-prime-reddit-picks">Apple And 4 More Stocks On The Rise: Prime Reddit Picks</a>
Here are the top picks from the Reddit community:
<ol>
<li>Fluence Energy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FLNC#NASDAQ">FLNC</a>): Redditor 8000000MadeinMarket recommends FLNC, a leader in energy storage with a promising growth trajectory. With strong quarterly growth, substantial contracted backlog and a bullish outlook from analysts, Fluence Energy presents a compelling opportunity for long-term growth investors.</li>
<li>Palantir Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>): Highlighted by Redditor NeonDr33mer, PLTR stands out for its data analytics and software solutions. As a key player in the tech sector, PLTR offers potential for substantial growth in the years to come.</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): Redditor tomato119 recommends NVDA for its dominance in the semiconductor industry. With its innovative technology and market leadership, NVDA is positioned for continued success in the evolving tech landscape.</li>
</ol>
While these three stocks take the spotlight, there were other noteworthy mentions from the Reddit community as well. Celsius Holdings, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CELH#NASDAQ">CELH</a>) &#8211; a global leader in functional beverages, and SoFi Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) &#8211; a fintech disruptor. These offer additional avenues for growth-minded investors. 
Moreover, Redditor jeffh19 suggests considering growth-focused ETFs such as Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>), Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), and Invesco NASDAQ 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NYSE">QQQM</a>), for diversified exposure to high-growth sectors. 
As investors navigate the dynamic market landscape, these top picks and ETF recommendations provide valuable insights into potential opportunities for growth in 2024 and beyond.
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38169084/what-is-the-most-undervalued-mango-semiconductor-stock-right-now">What Is The Most Undervalued MANGO (Semiconductor) Stock Right Now?</a>
Photo: Shutterstock

Top 3 Growth Stocks For 2024 And Beyond: 'I Have a Pretty Long Runway Because Of My Age,' Says Redditor

BofA&nbsp;analyst Wamsi Mohan maintained a Buy rating on&nbsp;Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with a&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/AAPL/analyst-ratings" rel="noreferrer noopener">price target of $225</a>.
Mohan noted that historically, Apple investors have tended to look at existing products and the profitability associated with those products and services to measure the company&#8217;s future performance.&nbsp;
He went back to 2018 to see where the 2023 consensus gross margins were in 2018.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38179872/apples-new-office-space-in-coral-gables-signals-further-expansion-into-latin-america" rel="noreferrer noopener">Apple&#8217;s New Office Space in Coral Gables Signals Further Expansion into Latin America</a>
The Street was modeling fiscal 2023 gross margins for Apple at 39%, but Apple printed 44% gross margins, significantly exceeding (500bps) original expectations.&nbsp;
Mohan noted that the Street continues to underestimate Apple&#8217;s long-term gross margin potential across both products and Services yet again.&nbsp;
He emphasized about 180bps of Product gross margin upside and about 150bps of Services margin upside over the next few years.&nbsp;
He noted that Apple&#8217;s gross margins are headed significantly higher, driven by an increased mix of services within the overall portfolio, which should account for about 60bps of margin improvement through 2026.&nbsp;
The large drivers of product gross margin include Apple&#8217;s vertical integration using its internal modem, which could add up to 110bps of product gross margin and 160bps of iPhone gross margins, per the analyst.&nbsp;
He also noted the mix as favorable, with customers choosing higher-end products like pro-iPhone models).
He noted that given the focus on monetizing Service revenue across the plus 2 billion installed base of devices, the cost of delivery of these services becomes important.&nbsp;
As the business continues to scale, Mohan noted Apple in-sourcing server chips and reducing reliance on public cloud providers, thereby driving cost savings.&nbsp;
He estimated that this could drive Service margins higher by a minimum of 100bps (and potentially much higher if Apple-owned data centers also eventually move to Apple silicon).
Consumers are opting for more high-end devices (higher price), but Mohan also expects Apple to raise the pricing of individual hardware devices over time, which can be accretive to gross margin.&nbsp;
Further, although large, the services installed base only has about 300 million or so paying customers, which he noted can grow significantly over time.
Mohan projected fiscal 2024 sales and EPS of $396.24 billion and $6.70.
Apple stock gained over 5% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action: AAPL shares traded higher by 3.50% at $173.65 on the last check Thursday.
Image Source &#8211; Apple

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) continues consolidating its presence in&nbsp;<a target="_blank" href="https://www.benzinga.com/real-estate/24/04/38166728/construction-costs-climb-while-crane-numbers-decline-signaling-industry-shift" rel="noreferrer noopener">Miami</a>, following in the footsteps of other Big Tech companies&#8217; South Florida expansion.
The iPhone maker invested in a 45,000 square feet (4,181 square meters) space in a new building in Coral Gables, a wealthy suburb just south of Miami.
It already has a smaller office in the vicinity, focusing primarily on Latin America and the advertising business, including selling ad slots in the App Store.&nbsp;
The firm will likely launch a significant new retail store in Miami&#8217;s $4 billion Worldcenter development, Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-09/apple-targets-new-miami-office-space-following-amazon-microsoft?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37892837/apple-wants-to-strengthen-presence-in-china-in-talks-with-baidu-over-ai-collaboration" rel="noreferrer noopener">Apple Wants to Strengthen Presence in China, In Talks With Baidu Over AI Collaboration</a>
Since the pandemic, South Florida has continued to attract the ultra-wealthy and their companies, with firms either moving to the area outright or expanding their footprints.&nbsp;
Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/11/35971267/is-jeff-bezos-move-to-florida-guiding-amazons-search-for-miami-office-space" rel="noreferrer noopener">seeks 50,000 square feet</a>&nbsp;in Miami after founder Jeff Bezos moved to Florida from Seattle.&nbsp;
Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has also leased a new office in the city, in the same building that will serve as headquarters for Ken Griffin&#8217;s Citadel.&nbsp;
<a target="_blank" href="https://www.benzinga.com/general/hedge-funds/24/03/37497475/kevin-griffins-citadel-readies-for-construction-of-miami-headquarters-why-the-hedge-fund-bill" rel="noreferrer noopener">Prior reports indicated</a>&nbsp;Griffin&#8217;s bullishness on Miami&#8217;s prospects, citing its potential to overtake New York City as the world&#8217;s financial capital. He looks to make Miami &#8220;Wall Street South.&#8221;
Apple&#8217;s new Miami space will be at The Plaza Coral Gables, bankrolled by Agave Holdings, a Mexican family office funded by tequila.&nbsp;Raymond James&nbsp;has also set up shop in the building.
The higher demand for office space triggered higher rents. According to Avison Young, a commercial real estate adviser, asking rates on commercial properties in Miami climbed to $57 a square foot.
Apple stock has gained 5% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action:&nbsp;AAPL shares traded higher by 0.41% at $170.36 premarket on the last check Wednesday.
Also Read: <a href="https://www.benzinga.com/news/24/03/37631605/apples-winning-strategy-analyst-highlights-how-pricing-and-services-fuel-market-growth" target="_blank" rel="noreferrer noopener">Apple&#8217;s Winning Strategy &#8211; Analyst Highlights How Pricing and Services Fuel Market Growth</a>
Apple Cupertino headquarters photo via Shutterstock

Media

AMZN

Apple's New Office Space in Coral Gables Signals Further Expansion into Latin America

Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is gearing up to&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37877280/microsoft-launches-new-ai-powered-surface-devices-for-businesses-set-to-ship-in-april" rel="noreferrer noopener">showcase its ambitious</a>&nbsp;&#8220;AI PCs&#8221; concept at an event in Seattle next month.&nbsp;
The company aims to outperform&nbsp;Apple Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) M3-powered MacBook Air with new&nbsp;Arm Holdings Plc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)- powered Windows laptops.&nbsp;
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/09051758/newplot-8.png" alt="" class="wp-image-283343" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/09051758/newplot-8.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/09051758/newplot-8-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
These upcoming devices, powered by&nbsp;Qualcomm Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) Snapdragon X Elite processors, are expected to surpass Apple&#8217;s offerings in CPU performance, AI-accelerated tasks, and app emulation.&nbsp;
Microsoft&#8217;s confidence in Qualcomm arises after years of underwhelming performance from previous chips, and Microsoft believes the Snapdragon X Elite will significantly enhance Windows on Arm&#8217;s competitiveness, the Verge&nbsp;<a target="_blank" href="https://www.theverge.com/2024/4/8/24116587/microsoft-macbook-air-surface-arm-qualcomm-snapdragon-x-elite" rel="noreferrer noopener">reports</a>.&nbsp;
The company plans to demonstrate the superior capabilities of these processors compared to an M3 MacBook Air, highlighting faster CPU tasks, AI acceleration, and more efficient app emulation.&nbsp;
Microsoft is betting its new Windows AI PCs will outdo Apple&#8217;s Rosetta 2 app compatibility layer by providing quicker app emulation.&nbsp;
This initiative follows Microsoft&#8217;s introduction of x64 app-emulation for Windows 11, which aims to run apps smoothly on ARM devices without a native ARM64 version.&nbsp;
Furthermore, Microsoft intends to release consumer versions of the Surface Pro 10 and Surface Laptop 6 equipped with Snapdragon X Elite processors.&nbsp;
These devices, internally dubbed &#8220;next-gen AI Copilot PCs,&#8221; distinct from those running on&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), will feature exclusive AI-powered Windows functionalities. One such feature, AI Explorer, will enable users to quickly retrieve past activities on their device, utilizing a Neural Processing Unit chip for a comprehensive timeline of events.
Microsoft also aims to enhance video streaming on Arm-powered devices with new AI features, including Windows Studio Effects for improved video calls and creative AI model integrations.&nbsp;
Microsoft anticipates that half of all new Windows devices will feature AI-capable chips by the end of 2026.
Lisa Su, AMD&#8217;s CEO, highlighted the significance of AI PCs, describing them as the most transformative technology in the past fifty years. Earlier reports have revealed Intel&#8217;s ambitious plan to revolutionize the PC industry by integrating AI into up to 100 million PCs by 2025.
Microsoft stock gained 47% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;IShares U.S. Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>).
Price Action:&nbsp;MSFT shares traded higher by 0.27% at $425.75 premarket on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Microsoft

INTC

iShares Dow Jones US Technology Sector Index Fund

QCOM

Microsoft Set to Unveil Qualcomm-Powered AI PCs, Aiming to Surpass Apple's MacBook Air

Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has unveiled a new hub in London for its recently established&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/23/11/36031993/microsoft-marks-its-largest-uk-investment-with-major-focus-on-ai-development" rel="noreferrer noopener">consumer AI division</a>, led by AI scientist and engineer Jordan Hoffmann, who the company recruited from the notable AI startup Inflection AI.&nbsp;
This move follows Microsoft&#8217;s investment in Inflection AI last year and CEO Satya Nadella&#8217;s introduction of a consumer AI division three weeks ago. Inflection AI&#8217;s founders, including Mustafa Suleyman of Deepmind fame, are leading the division, TechCrunch&nbsp;<a target="_blank" href="https://techcrunch.com/2024/04/08/microsoft-ai-gets-a-new-london-hub-headed-up-by-former-inflection-and-deepmind-scientist-jordan-hoffmann/" rel="noreferrer noopener">reports</a>.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/11/36021642/microsoft-president-makes-startling-revelations-on-arrival-of-advanced-ai" rel="noreferrer noopener">Microsoft President Makes Startling Revelations on Arrival of Advanced AI</a>
Hoffmann, a former Deepmind research scientist who transitioned to Inflection AI in 2022, has been recognized by Suleyman as an &#8220;exceptional AI scientist and engineer.&#8221;
Hoffmann is set to head the London unit, with Suleyman reporting directly to Nadella from the U.S.
Microsoft plans to seek new AI talents to join Hoffmann at its Paddington office, focusing on developing new language models and related infrastructure.&nbsp;
This initiative is part of Microsoft&#8217;s broader £2.5 billion ($3.15 billion) investment in the U.K. over the next three years, promising to expand its data center footprint and train over a million people for the AI economy.&nbsp;
The investment will expand the data center footprint to include sites in London and Cardiff, potentially extending to northern England, and deliver over 20,000 of the most advanced GPUs to the U.K. by 2026.&nbsp;
Additionally, the company has committed to a multimillion-dollar initiative to train one million individuals in the skills needed to develop and operate AI.
The U.K. is a leading country in AI R&amp;D investment and hosts&nbsp;Google&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) DeepMind, which signals a potential talent competition between major AI players.&nbsp;
Microsoft stock gained 47% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares Global Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Actions:&nbsp;Microsoft shares traded higher by 0.24% at $426.59 on the last check Monday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38017994/microsoft-decouples-teams-from-office-globally-in-response-to-antitrust-concerns-report" rel="noreferrer noopener">Microsoft Decouples Teams from Office Globally in Response to Antitrust Concerns: Report</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Government

Regulations

GOOG

GOOGL

Microsoft's £2.5B UK Investment Fuels AI Talent Hunt and Data Center Expansion

Casa Systems, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASA#NASDAQ">CASA</a>) shares are tumbling after the company initiated a court-supervised Chapter 11 sale process to achieve value-<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38065337/casa-systems-initiates-court-supervised-chapter-11-sale-process-for-businesses" rel="noreferrer noopener">maximizing sales of its businesses</a>.
The company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Casa Systems inked an asset purchase agreement to sell its 5G Mobile Core and RAN businesses, including Axyom Cloud Native 5G Core Software &amp; RAN Assets, to&nbsp;Lumine Group&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/LMGIF#OTC">LMGIF</a>).&nbsp;
The company has asked the Bankruptcy Court for approval to complete the transaction by the end of April.
Apart from this, Casa Systems entered into a stalking-horse asset purchase agreement to sell its Cable business to an affiliate of&nbsp;Vecima Networks, Inc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/VNWTF#OTC">VNWTF</a>).&nbsp;
The company has asked the Bankruptcy Court to approve procedures for soliciting additional bids and to set an auction for mid-May.
In connection with the sale process, the company inked a Restructuring Support Agreement (RSA) with over 98% of its senior secured lenders, allowing Casa to use its cash on hand and anticipated Cloud/RAN Sale proceeds to fund its operations and Chapter 11 process.
Michael Glickman, Chief Executive Officer, said, &#8220;Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets.&#8221;
&#8220;We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.&#8221;
Investors can gain exposure to the stock via&nbsp;IShares Microcap ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWC#NYSE">IWC</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Action: CASA shares are down 80.4% at $0.05 on the last check Wednesday.
Photo via Wikimedia Commons

Small Cap

General

CASA

LMGIF

VNWTF

Why Casa Systems Shares Are Tumbling Today

Apple Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) battle over access to its devices pits the tech giant against software developers and regulators worldwide, centering&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/36929430/apples-phil-schiller-warns-of-privacy-threats-from-new-eu-app-stores-theres-no-getting-around-that" rel="noreferrer noopener">on the influential</a>&nbsp;Phil Schiller, Apple&#8217;s former chief marketing officer.&nbsp;
Schiller, known for his close relationship with Steve Jobs, has become a vocal advocate for Apple&#8217;s integrated ecosystem, emphasizing security and privacy.&nbsp;
Despite facing criticism&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37896862/as-apple-battles-doj-antitrust-claims-analysts-compare-it-with-microsofts-past-seeing-ai-opportuniti" rel="noreferrer noopener">and legal challenges</a>&nbsp;from major entities like the Justice Department, the European Union, and companies like&nbsp;Spotify Technology SA&nbsp;NYSE: SPOT) and&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Apple remains steadfast, led by Schiller&#8217;s vigorous defense of its practices, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/tech/apple-turns-to-longtime-steve-jobs-disciple-to-defend-its-walled-garden-2ab44fae" rel="noreferrer noopener">reports</a>.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37941515/apples-iphone-sales-faces-sharp-decline-in-china-amid-rising-competition" rel="noreferrer noopener">Apple&#8217;s iPhone Sales Faces Sharp Decline in China Amid Rising Competition</a>
Schiller&#8217;s role has expanded beyond marketing, making him&nbsp;<a target="_blank" href="https://www.benzinga.com/sec/insider-trades/0001214110/philip-w-schiller" rel="noreferrer noopener">a key figure</a>&nbsp;in Apple&#8217;s legal and public relations strategies, particularly regarding the App Store.&nbsp;
His efforts have helped Apple navigate significant antitrust litigation, notably the lawsuit with Epic Games over App Store policies.&nbsp;
Schiller asserts that Apple&#8217;s stringent control over app distribution ensures a secure and high-quality user experience, a stance that has sometimes drawn backlash for stifling competition and innovation.
Despite retiring from his marketing position, Schiller continues to impact Apple&#8217;s direction as an Apple Fellow, actively participating in legal battles and public discourse to preserve the company&#8217;s app review policies and revenue model.&nbsp;
Meanwhile, Apple remains bullish in the Chinese market despite intensifying geopolitical tensions.&nbsp;
The iPhone maker looks to introduce its Vision Pro headset in China within 2024 despite a significant decline in iPhone shipments in China coinciding with the resurgence of&nbsp;Huawei Technologies Co.&nbsp;Apple also inaugurated a new Apple store in Shanghai.
The Apple stock has lost 9% year-to-date. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action:&nbsp;AAPL shares traded higher by 1.59% at $172.41 on the last check Wednesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37830193/google-and-apples-potential-ai-partnership-sparks-analyst-optimism-could-reinforce-" rel="noreferrer noopener">Google And Apple&#8217;s Potential AI Partnership Sparks Analyst Optimism, Could Reinforce Google&#8217;s Leadership in AI Technology</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Hadrian via Shutterstock

Steve Jobs Protege Phil Schiller Defends Apple's 'Walled Garden' Against Global Regulatory Pushback

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) experienced a significant decline in&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37479073/apples-iphone-sales-dip-24-in-china-falls-to-fourth-place-behind-vivo-and-huawei" rel="noreferrer noopener">iPhone shipments in China</a>, with about a 33% drop in February compared to the previous year, highlighting a continued downturn in demand for its leading product in a crucial overseas market.&nbsp;
The decline is part of a broader trend, with government data indicating that foreign brands shipped approximately 2.4 million smartphones in February, a period affected by the timing of the Lunar New Year.&nbsp;
Apple, the predominant overseas brand in China, contributed to most of these shipments, Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-03-26/iphone-china-shipments-fell-about-33-in-feb-state-data-show?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37892837/apple-wants-to-strengthen-presence-in-china-in-talks-with-baidu-over-ai-collaboration" rel="noreferrer noopener">Apple Wants to Strengthen Presence in China, In Talks With Baidu Over AI Collaboration</a>
This shipment decrease follows a January in which Apple saw a roughly 39% reduction, shipping about 5.5 million units compared to the year before, according to the China Academy of Information and Communications Technology.
Apple has faced challenges in China, the world&#8217;s largest smartphone market, since it released its latest iPhone models in September.&nbsp;
The resurgence of&nbsp;Huawei Technologies Co&nbsp;as a competitive force in the premium phone segment has cut into Apple&#8217;s market share, leading to unusual discounts offered by the American tech giant in January.
The slump in iPhone shipments suggests a broader slowdown for Apple in China, exacerbated by local competitors&#8217; aggressive marketing of AI-enabled smartphones.&nbsp;
The smartphone market in China also saw a significant contraction in February, indicating a general hesitancy among consumers to spend on non-essential items.&nbsp;
Analysts anticipate that while the smartphone market might grow throughout the year, iPhone sales will likely continue their downward trajectory, with projections of leading the market&#8217;s decline by over 20%.
CEO Tim Cook confirmed during an interaction with Chinese state media that Apple plans to launch its Vision Pro headset in&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37910624/apple-sets-sight-on-china-vision-pro-headset-launching-this-year" rel="noreferrer noopener">China within 2024</a>.
First unveiled in the United States in February at $3,500, the Vision Pro marks Apple&#8217;s entry into the competitive virtual and augmented reality headset industry.
This announcement aligns with Cook&#8217;s recent activities in China, including opening a new Apple store in Shanghai and attending the China Development Forum in Beijing.
The stock gained 8% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action:&nbsp;AAPL shares are trading higher by 0.09% at $171.01 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Apple

Apple's iPhone Sales Faces Sharp Decline in China Amid Rising Competition

Launched on 10/12/2006, the Invesco Dorsey Wright Technology Momentum ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ptf#NASDAQ">PTF</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $399.14 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright?? Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF&#39;s expense ratio.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.06%.
Sector Exposure and Top Holdings
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 92.10% of the portfolio.
Looking at individual holdings, Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) accounts for about 6.03% of total assets, followed by Affirm Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/afrm#NASDAQ">AFRM</a>) and Cadence Design Systems Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>).
The top 10 holdings account for about 43.25% of total assets under management.
Performance and Risk
So far this year, PTF has gained about 13.70%, and is up roughly 37.54% in the last one year (as of 03/25/2024). During this past 52-week period, the fund has traded between $39.60 and $58.02.
The ETF has a beta of 1.24 and standard deviation of 32.84% for the trailing three-year period, making it a high risk choice in the space. With about 34 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dorsey Wright Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PTF is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (ETF:XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (ARCA:VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $65.23 billion in assets, Vanguard Information Technology ETF has $65.97 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
<a href="https://www.zacks.com/stock/news/2245294/should-you-invest-in-the-invesco-dorsey-wright-technology-momentum-etf-ptf?cid=CS-BENZ-FT-sector_etf-2245294">To read this article on Zacks.com click here.</a>&nbsp;

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Powershares Dynamic Technology Securitytor Portfolio

Should You Invest in the Invesco Dorsey Wright Technology Momentum ETF (PTF)?

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is set to debut its Vision Pro headset&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37875818/tim-cook-launches-new-apple-store-in-shanghai-as-iphone-struggles-in-china" rel="noreferrer noopener">in China within</a>&nbsp;the year, as confirmed by CEO Tim Cook during his engagement with Chinese state media.&nbsp;
The announcement, made through a video shared on a CCTV account on Weibo, showcases Cook&#8217;s affirmation of the headset&#8217;s imminent launch.&nbsp;
Initially introduced in the United States in February with a base price of $3,500, the Vision Pro represents Apple&#8217;s foray into the virtual and augmented reality headset market, CNBC&nbsp;<a target="_blank" href="https://www.cnbc.com/2024/03/25/apple-to-launch-vision-pro-in-china-this-year-tim-cook-says.html" rel="noreferrer noopener">reports</a>.
In the competitive Chinese market, Apple&#8217;s Vision Pro will go head-to-head with established local brands, including Pico, a company under the umbrella of ByteDance, the parent company of TikTok.&nbsp;
Cook&#8217;s announcement coincides with his recent visit to China, where he inaugurated a new Apple store in Shanghai and participated in the China Development Forum in Beijing.&nbsp;
Throughout his visit, Cook expressed unwavering confidence in the Chinese market, highlighting his admiration for the country&#8217;s potential, culture, and people.&nbsp;
During the initial six weeks of the year, iPhone&#8217;s market position in China dropped to fourth, with sales declining by 24%.&nbsp;
Despite experiencing sales dips in a market that shrank by 7%,&nbsp;Huawei Technologies Co&nbsp;enhanced its market share to 16.5%, driven by the popularity of its Mate 60 Pro series and increased nationalist purchases.
In response to a slowing market that impacted iPhone sales, Apple launched uncommon discounts in January.&nbsp;
However, despite these price reductions and significant discounts on the iPhone 15 series, Apple&#8217;s revenue in China saw a 13% decrease to $20.8 billion in the December quarter, indicating a pronounced decline.
Apple stock gained 9% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action:&nbsp;AAPL shares are trading lower by 0.35% at $171.67 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Apple

Apple Sets Sight on China, Vision Pro Headset Launching This Year

Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is set to declare its &#8220;year of&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36485365/microsoft-adds-dedicated-copilot-key-to-windows-pcs-and-laptops-wants-2024-to-be-year-of-ai-pc" rel="noreferrer noopener">the AI PC</a>&#8221; with the launch of two new Surface devices, the Surface Pro 10 for Business and the Surface Laptop 6 for Business,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/37363100/intel-sets-sights-on-dominating-ai-pc-market-with-ambitious-100m-target-partners-with-microsoft" rel="noreferrer noopener">both equipped with</a>&nbsp;Intel Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) latest Core Ultra processors, a Neural Processing Unit (NPU), and a dedicated Copilot key for AI-powered features in Windows 11, exclusively for business customers.&nbsp;
These devices, which maintain their external designs with slight modifications, including additional USB-C Thunderbolt 4 ports and an optional smart card reader for the laptop, are set to start shipping on April 9, the Verge&nbsp;<a target="_blank" href="https://www.theverge.com/2024/3/21/24107513/microsoft-ai-pc-surface-pro-10-laptop-6-specs-release-date-price" rel="noreferrer noopener">reports</a>.
The Surface Pro 10 for Business offers configurations of up to 64GB of RAM and 256GB SSD storage starting at $1,199, boasting two USB-C Thunderbolt 4 ports, up to 19 hours of battery life, and a 13-inch display with an anti-reflective coating for increased brightness.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36596609/nvidia-leads-ai-chip-rivalry-with-new-gpus-while-amd-and-intel-bet-big-on-ai-pcs" rel="noreferrer noopener">Nvidia Leads AI Chip Rivalry with New GPUs, While AMD and Intel Bet Big on AI PCs</a>
Despite rumors, Microsoft confirmed the device would feature an LCD instead of an OLED display.&nbsp;
Additionally, the Surface Laptop 6 for Business has been internally redesigned for desktop-grade performance with Intel&#8217;s Core Ultra H-series chips, offering up to 64GB of RAM and 1TB SSD storage configurations.&nbsp;
Both models emphasize business utility with features like NFC readers for security authentication, 5G options, and serviceability enhancements, preparing them for upcoming AI advancements in Windows 11.
Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) chief&nbsp;Lisa Su&nbsp;had voiced the gravity of AI PCs, citing it as the most critical technology over the&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37601308/amd-ceo-lisa-su-says-ai-is-most-important-technology-of-last-50-years-everyone-will-want-an-ai-p" rel="noreferrer noopener">last five decades</a>.
Prior reports indicated Intel aims to transform the PC industry by embedding AI in as many as 100 million PCs by 2025.&nbsp;
This year, the company is on track to deliver 40 million AI-equipped PCs and has a target of 60 million for the following year, aiming to capture more than 20% of the global PC market by 2025.&nbsp;
In collaboration with Microsoft, Intel is leading the development of the AI PC concept, which features Intel&#8217;s Core Ultra PC chipset equipped with a neural processing unit (NPU) for handling AI tasks, along with Microsoft&#8217;s AI chatbot Copilot and a special Copilot button on keyboards.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21125021/newplot-34.png" alt="" class="wp-image-261085" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21125021/newplot-34.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/21125021/newplot-34-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Microsoft stock gained over 57% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares U.S. Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Action:&nbsp;MSFT shares traded higher by 1.15% at $430.14 on the last check Thursday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Microsoft

Microsoft Launches New AI-Powered Surface Devices for Businesses, Set to Ship in April

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly venturing into AI-driven advertising within its App Store, trialing an automated product similar to&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google&#8217;s Performance Max and Meta&#8217;s Advantage+.&nbsp;
This innovation allows ads to be placed automatically across four existing ad formats, optimizing for the advertiser&#8217;s budget and acquisition costs while targeting specific audiences and regions.&nbsp;
Currently, in testing with a select group of advertisers, this initiative aims to enhance the effectiveness of Apple Search Ads, Business Insider&nbsp;<a target="_blank" href="https://www.businessinsider.com/apple-tests-ai-app-store-ads-performance-max-2024-3?IR=T" rel="noreferrer noopener">reports</a>.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/36938752/amazons-new-ai-assistant-rufus-sparks-debate-will-it-impact-advertising-revenue" rel="noreferrer noopener">Amazon&#8217;s New AI Assistant Rufus Sparks Debate &#8211; Will It Impact Advertising Revenue?</a>
Apple&#8217;s current focus is on the App Store, but there&#8217;s speculation that this AI tool could extend to other Apple services.
Recent reports indicated Apple dumping its EV development project Titan to emphasize&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/02/37346162/apple-abandons-electric-car-project-to-focus-on-generative-ai" rel="noreferrer noopener">its AI endeavors</a>.
Experts predicted $33 billion in AI opportunities&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37476887/gene-munster-predicts-apple-ai-33b-a-year-opportunity-draws-comparisons-to-this-sto" rel="noreferrer noopener">for Apple annually</a>.
Experts predict this automated tool could precede new advertising opportunities within Apple&#8217;s ecosystem, potentially including Maps, Apple TV+, and other apps. Apple&#8217;s advertising venture, predominantly based on App Store search ads, is reportedly projected to yield $7 billion in revenue this year, with recent expansions into MLS game sponsorships on Apple TV and strategic hires in adtech and TV-ad sales hinting at broader advertising plans, possibly including an ad-supported tier for Apple TV+.
Investors can gain exposure to Apple via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action:&nbsp;AAPL shares traded lower by 0.09% at $172.60 on the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/01/36661058/google-announces-major-job-cuts-in-ad-sales-shifts-focus-to-ai-and-automation" rel="noreferrer noopener">Google Announces Major Job Cuts in Ad Sales, Shifts Focus to AI and Automation</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Apple Innovates with AI Ads, Reportedly Tests Automated Placements in App Store and Beyond

Apple Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhone&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/37395093/apple-resellers-slash-iphone-15-prices-in-china-to-counter-economic-headwinds-and-huaweis-resurgence" rel="noreferrer noopener">sales in China</a>&nbsp;saw a 24% drop in the first six weeks of the year, demoting it to the fourth position among smartphone vendors in the country, as reported by&nbsp;<a target="_blank" href="https://www.counterpointresearch.com/insights/china-smartphone-sales-first-6-weeks-2024-double-digit-declines-for-apple-oppo-vivo/" rel="noreferrer noopener">Counterpoint Research</a>.&nbsp;
This decline allowed&nbsp;Vivo, a Dongguan-based company proficient in catering to the budget segment, to overtake Apple as China&#8217;s top smartphone seller.&nbsp;
Despite both companies experiencing sales drops, the overall smartphone market in China also contracted by 7%, dampening expectations of a quick market recovery, Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-03-05/apple-iphone-sales-in-china-plummet-24-as-vivo-not-huawei-becomes-best-seller?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Huawei Technologies Co&nbsp;capitalized on the success of its Mate 60 Pro series and a surge in nationalistic purchasing, increasing its market share to 16.5% from 9.4%.&nbsp;
Honor Device Co., which separated from Huawei in 2020, was the only other major manufacturer to achieve growth in unit sales, with a modest 2% increase.&nbsp;
Meanwhile, Apple&#8217;s market share dwindled to 15.7% from 19% the previous year.
A general market downturn has hindered the iPhone&#8217;s performance in China.&nbsp;
In response, Apple introduced uncommon discounts on its website in January, and online resellers have reduced prices by up to $180. Counterpoint analyst Ivan Lam noted that despite declining consumer confidence, Huawei managed to satisfy the demand for its popular Mate 60 series due to improved production capabilities.&nbsp;
Lam highlighted that the period compared was already low for sales, but Apple still has some flexibility to stimulate demand, as demonstrated by aggressive promotions ahead of Women&#8217;s Day.
Previous reports indicated Apple offering the iPhone 15 series at steep discounts in China by resellers, highlighting a dip in demand.
Apple&#8217;s sales in China declined by 13% to $20.8 billion in the December quarter, marking its weakest performance.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05044928/newplot-14.png" alt="" class="wp-image-239060" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05044928/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/05044928/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Investors can gain exposure to Apple via&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and&nbsp;SPDR Select Sector Fund &#8211; Technology&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action: AAPL shares are trading lower by 2.25% at $171.16 premarket on the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/10/35154858/apple-rival-huawei-doubles-smartphone-sales-as-us-restrictions-prepare-to-kick-in" rel="noreferrer noopener">Apple Rival Huawei Doubles Smartphone Sales As US Restrictions Prepare to Kick In</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Apple's iPhone Sales Dip 24% in China, Falls to Fourth Place Behind Vivo and Huawei

The S&amp;P 500 index, a bellwether for the U.S. stock market, ends February with a 5.3% surge, marking its fourth <a href="https://www.benzinga.com/markets">consecutive month of gains.</a>
Since the tumultuous days of late October, the broader stock market rally now nears an impressive 25% increase.
The tech-heavy Nasdaq 100 also paints a picture of extraordinary resilience. It surpassed the 18,000-point mark and closed the month at an all-time high. The surge in the Nasdaq 100, up 28% since late October, offers a testament to the unwavering appetite for tech-oriented investments. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/02/37062104/joe-biden-says-stock-market-strength-is-sign-of-confidence-in-americas-economy-good-news">Joe Biden Says Stock Market Strength Is &#8216;Sign Of Confidence&#8217; In America&#8217;s Economy: &#8216;Good News&#8217;</a>
Within the captivating realm of exchange-traded funds (ETFs), here we highlight those commanding the largest influx of money throughout February.
Among these standouts, six offer exposure to broader equity indices, two pivots towards Treasury bonds, while one extends its focus on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
<h3 class="wp-block-heading">Top 10 US ETFs By Inflows In February</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Fund Flows (1M)</th>
<th>AUM</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>6.815B</td>
<td>413.71B</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</td>
<td>5.881B</td>
<td>442.69B</td>
</tr>
<tr>
<td>Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>)</td>
<td>5.786B</td>
<td>69.413B</td>
</tr>
<tr>
<td>iShares Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NYSE">IBIT</a>)</td>
<td>3.891B</td>
<td>8.07B</td>
</tr>
<tr>
<td>Vanguard Intermediate-Term Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGIT#NYSE">VGIT</a>)</td>
<td>3.1B</td>
<td>24.816B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLG#NYSE">SPLG</a>)</td>
<td>3.066B</td>
<td>31.938B</td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>)</td>
<td>2.819B</td>
<td>374.803B</td>
</tr>
<tr>
<td>iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>)</td>
<td>2.348B</td>
<td>101.583B</td>
</tr>
<tr>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>1.874B</td>
<td>252.624B</td>
</tr>
<tr>
<td>iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)</td>
<td>1.566B</td>
<td>48.99B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
On Friday, Feb. 9, the S&amp;P 500 index <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37041128/s-p-500-claims-5-000-as-tech-soars-bitcoin-rockets-above-47-000-whats-driving-marke" target="_blank" rel="noreferrer noopener">topped 5,000 for the first time</a>.
This milestone prompted remarks from President Joe Biden. &#8220;The stock market going strong is a sign of confidence in America's economy,&#8221; he said on social media.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37402333/exclusive-magnificent-7-takes-center-stage-in-roundhills-expanded-etf-lineup-with-i">EXCLUSIVE: Magnificent 7 Takes Center Stage In Roundhill&#8217;s Expanded ETF Lineup With Inverse And Leveraged Options</a>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

ETFs

$BTC

IBIT

SPLG

iShares Trust Barclays 20+ Year Treasury Bond Fund

VGIT

Investors Poured Nearly $40B Into 10 ETFs In February: Find Out What You're Overlooking

In a year when equity markets rallied strongly, short sellers — traders who position for losses on assets — had an extremely <a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36416385/forget-the-magnificent-7-did-anyone-back-these-1-000-gainers-in-2023">tough time in 2023</a>.
Data published on Friday by S3 Partners showed that short sellers in the U.S. and Canada were down $194.9 billion in 2023 — down 20.4% on an average short interest of $958 billion.
These mark-to-market losses of 2023 offset two thirds of the $299.1 billion gain seen in 2022, with the biggest losses coming from the technology and consumer discretionary sectors.
The biggest IT-based exchange traded fund by value of assets is the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) and it gained 44.7% during 2023. Similarly, the biggest consumer discretionary ETF, the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was up 33.4% in 2023.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05091438/newplot-20.jpeg" alt="" class="wp-image-175128" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05091438/newplot-20.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05091438/newplot-20-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05091438/newplot-20-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
<h2 class="wp-block-heading">Least Profitable Short Positions</h2>
It probably doesn&#8217;t need mentioning which were the least profitable short trades — let&#8217;s just run through the top three names:
<ul>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) — $12.2 billion total net loss</li>
<li>Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) — $11.2 billion loss</li>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) — $7.3 billion loss</li>
</ul>
After the remaining <a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36416385/forget-the-magnificent-7-did-anyone-back-these-1-000-gainers-in-2023">Magnificent Seven stocks</a> followed a host of Nvidia&#8217;s rival semiconductor makers. Indeed, the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), an exchange traded fund that tracks the Philadelphia Semiconductor Index, was up 65% in 2023.
Cryptocurrency shorting wasn&#8217;t very profitable either, and also among the biggest equity short losses was Coinbase Global Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), the crypto exchange, which lost short sellers $4.9 billion as the stock soared 341% higher in 2023.
<h2 class="wp-block-heading">Where Did Short Sellers Make Any Money?</h2>
There were a few high-profile bankruptcies in 2023 which allowed short sellers some easy pickings from low-hanging fruit.
The <a href="https://www.benzinga.com/news/23/04/32085579/why-first-republic-bank-stock-frc-is-getting-hammered">collapse </a>of First Republic Bank — the second such banking failure during last year&#8217;s regional bank crisis — provided shorts with the biggest opportunity.
From average short interest of $194.3 million, the total net profits reaped from the rapid share price decline and eventual demise of First Republic were $1.63 billion.
The third-biggest total net gain was $1.06 billion from average short interest of $218.2 million, on short bets during the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31308902/svbs-implosion-gets-wall-street-talking-cuban-ackman-chanos-burry-schiff-and-krugma">demise </a>of Silicon Valley Bank, the first regional bank to collapse back in March.
In second and fourth places came a pair of pharmaceuticals companies. Moderna (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) in second place with total net profits of $1.2 billion and Pfizer (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) in fourth with $990.4 million as both companies reported dwindling sales and failures to cash in on the weigh-loss drug phenomenon that swept players such as Eli Lilly (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) rapidly higher in 2023.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36506654/marathon-hits-new-heights-bitcoin-miner-reports-record-1-853-coins-produced-in-december">Marathon Hits New Heights: Bitcoin Miner Reports Record 1,853 Coins Produced In December</a>
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Mid Cap

Short Sellers

Press Releases

COIN

MRNA

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

TSLA

Select Sector SPDR-Consumer Discretionary

Short Sellers' Nightmare: $195B Evaporates In 2023's Market Surge

On Friday, the Bureau of Economic Analysis delivered its eagerly awaited report on the Price Consumption Expenditure (PCE) price index, a key metric closely monitored by the Federal Reserve <a href="https://www.benzinga.com/economics/macro-economic-events/23/09/35000886/august-pce-inflation-report-headline-matches-forecasts-at-3-5-core-falls-to-3-9">to gauge inflationary trends.</a>
The headline inflation indicator showed a slight increase from an upwardly revised 3.4% in July to 3.5% year-on-year in August, matching with the anticipated 3.5%. In terms of monthly changes, the PCE price index increased by 0.4%, falling short of the expected 0.6%.
The core inflation reading, which excludes energy and food components from the calculation, decreased from 4.2% year-on-year in July to 3.9% year-on-year in August, in line with forecasts. The month-over-month variation in the core PCE price index dropped to 0.1%, slightly below both the previous reading and economists&#8217; consensus of 0.2%.
<h2 class="wp-block-heading">S&amp;P 500&#8217;s 5 Best-Performing Stocks On Friday</h2>
Taking a closer look at market reactions, here are the top-performing stocks of the day within the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>): 
<ul>
<li>NIKE Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) soared 6.9% after the company reported better-than-expected earnings in Q2. </li>
<li>Walgreens Boots Alliance Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NYSE">WBA</a>) rose over 6%, on track for the best performing session since November 2022. Bloomberg News reported on Friday that the company is considering Tim Wentworth, a former executive of Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>), as its potential next chief executive. Additionally, on Thursday, TD Cowen revised Walgreens Boots Alliance&#8217;s price target, lowering it from $41 to $37. </li>
<li>V.F. Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFC#NYSE">VFC</a>) rose nearly 7% </li>
<li>Zions Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZIONS#NYSE">ZIONS</a>) gained nearly 5% after Citigroup&#8217;s analyst Keith Horowitz started coverage of regional bank stocks, stating that the industry offers an attractive entry point. According to the analyst, Zion appears to have a stock price trading at a discount, and its net interest income has shown signs of bottoming out ahead of other banks. </li>
<li>Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) rose over 4%, rebounding from a 4.4% decline on Thursday, despite reporting stronger-than-expected quarterly results. </li>
</ul>
<h2 class="wp-block-heading">5 ETFs Moving On Friday</h2>
In the realm of ETFs, here are the price actions following the PCE price index report:
<ul>
<li>SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), up 2.2% </li>
<li>The Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) up 1.5% </li>
<li>Vanguard Real Estate (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) up 1.2% </li>
<li>Vanguard Information Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>) up 1.2% </li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) up 1.1%</li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/09/35001067/tesla-analyst-sees-no-stock-sell-off-even-after-slashing-q3-delivery-estimates-bear">Tesla Analyst Sees No Stock Sell-Off Even After Slashing Q3 Delivery Estimates, Bear Asks If This Is &#8216;High-School Cheerleading?&#8217;</a>
Photo: Shutterstock

Macro Economic Events

Economics

ZIONS

5 Stocks, 5 ETFs Make Moves After Friday Release Of Fed's Preferred Inflation Data

Austin Hankwitz, a 27-year-old investor and Tiktok influencer targets a $2 million retirement portfolio, heavily favoring index funds, Business Insider <a href="https://www.businessinsider.com/top-index-funds-one-with-high-returns-early-retirement-2023-8">reports</a>.
Hankwitz, a financial analyst from Nashville, has a TikTok follower base of over 700,000. He is on a mission to amass $2 million for retirement in eight years. 
Starting his investment journey in January, he&#8217;s already accumulated $120,174 across a brokerage and retirement account.
Hankwitz&#8217;s strategy is a mix of individual stocks and index funds. He believes index funds, like the S&amp;P 500, offer a &#8220;set-and-forget&#8221; approach, providing exposure to top US companies. 
&#8220;I think index-fund investing is the best way the everyday retail investor can begin building wealth for the future,&#8221; he stated. 
Among his top picks are the Vanguard 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), Vanguard Information Technology Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), and Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
Image via Shutterstock
Read Next: <a href="https://www.benzinga.com/23/08/33601450/do-i-have-to-pay-taxes-on-my-retirement-income-the-answer-may-surprise-you">Do I Have To Pay Taxes On My Retirement Income? The Answer May Surprise You.</a>
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A 27-Year-Old TikTok Influencer-Investor Reveals Strategy: $2M Retirement Portfolio In 8 Years, Including Funds With Over 500% Return

Top Technology Equities ETFs&nbsp;SPDR Select Sector Fund - Technology&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlk#NYSE">XLK</a>),&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vgt#NYSE">VGT</a>), and iShares U.S. Technology ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyw#NYSE">IYW</a>) gained 4.11% - 4.80% last week.
The ETFs have the highest exposure to&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and&nbsp;Microsoft Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) at 15%-22%.&nbsp;Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is the next significant stock constituent.
The tech stocks posted a mixed quarterly earnings performance due to economic uncertainties and macro headwinds.
In January, Microsoft reported second-quarter revenue of $52.7 billion, missing a Street estimate of $52.97 billion<a class="editor-rtfLink" href="https://pro.benzinga.com/feature/newsfeed/?gspk=bHVrZWphY29iaTUzNDg&amp;gsxid=tdEE0VrK8Jeg&amp;ref=lukejacobi5348" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">.</a>&nbsp;EPS was $2.32 in the second quarter,&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/01/30558271/microsoft-q2-earnings-highlights-redmond-misses-on-revenue-beats-on-eps-with-azure-growth" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">beating a Street estimate of $2.30</a>.
In February, Apple reported Q1 EPS of $1.88, missing the consensus estimate of $1.94 per share. Apple&#39;s top line fell 5% year-over-year to $117.2 billion, missing the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/02/30698621/apple-shares-slide-after-q1-miss-amid-weak-iphone-sales-installed-active-devices-cross-2b-mark" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">consensus estimate of $121.1 billion</a>.
However, OpenAI has been the hottest topic in the sector in 2023. It grabbed the investor&#39;s attention in January courtesy of its chatbot&nbsp;ChatGPT, adept at answering questions and writing essays and poems, and image generator Dall-E 2, which turns language prompts into novel images.
In January, Microsoft inked a new multiyear, $10 billion investment with ChatGPT-maker&nbsp;OpenAI. The deal followed its previous investments in 2019 and 2021. Microsoft saw a healthy engagement on the chat feature.
Apple&nbsp;has reportedly given its nod for an AI chatbot-driven email app called&nbsp;BlueMail&nbsp;following assurances from its developer&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/03/31207406/apple-approves-chatgpt-driven-app-after-investigating-potential-for-generating-inappropriate-content" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">that it has content moderation tools</a>.
Alphabet Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/goog#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOG</a>) (NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/googl#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOGL</a>)&nbsp;Google&nbsp;invested nearly $400 million in artificial intelligence startup Anthropic AI, which trialed a rival to ChatGPT. Google trialed new AI-powered chat products to integrate them into a search engine.&nbsp;
Google also tested a chatbot called &quot;Apprentice Bard,&quot; where employees can ask questions and&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/02/30724753/chatgpt-effect-google-intensifies-ai-focus-with-latest-investment" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">receive detailed answers similar to ChatGPT</a>.&nbsp;
Last week,&nbsp;Needham&nbsp;found that MSFT has a path to generating ~$40 billion of revenue uplift for MSFT and over $2 of EPS potential, likely over 5+ years, from monetizing OpenAI&#39;s technology in MSFT&#39;s productivity suite and premium GPT-integrated offerings. Needham anticipates additional upside from Bing AI and other potential revenue streams not included in the $2+ EPS figure.
Needham thinks NVDA&#39;s considerable investment in software represents the competitive moat that continues their lead, and the monetization of that software which has only just&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31176367/microsofts-monetization-potential-nvidias-nascent-monetization-and-investment-in-ch" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">begun represents yet another catalyst</a>.

BABA

BIDU

Tech ETFs Ride ChatGPT Wave Post Mixed Quarterly Performance

<ul>
<li>The Pentagon has split a six-year $9 billion contract for cloud computing services among&nbsp;Alphabet Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/goog#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOG</a>) (NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/googl#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">GOOGL</a>)&nbsp;Google,&nbsp;Oracle Corp&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/orcl#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ORCL</a>),&nbsp;Amazon.com Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/amzn#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMZN</a>) and&nbsp;Microsoft Corp&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/msft#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">MSFT</a>).</li>
<li>The U.S. Department of Defense&#39;s move came a year after scrapping a previous contract marred by accusations of political interference by the administration of former U.S. President Donald Trump and bogged down by legal challenges, the Financial Times&nbsp;<a class="editor-rtfLink" href="https://www.ft.com/content/55e5675c-6803-48c0-85d9-2097af69c16e" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reports</a>.</li>
<li>The Joint Warfighting Cloud Capability succeeded the Joint Enterprise Defense Infrastructure (Jedi), which aimed to build a large common commercial cloud for the entire DoD.&nbsp;</li>
<li>The Trump administration wanted to concentrate the cloud computing program under one provider.</li>
<li>The project is estimated to be completed by June 2028.</li>
<li>The DoD initially awarded Microsoft the contract in October 2018, but legal&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/22/07/28230204/microsoft-approached-google-oracle-other-cloud-providers-to-pitch-multi-cloud-service-providing-to-u" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">challenges delayed its implementation</a>.&nbsp;</li>
<li>Last summer, the Pentagon&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/21/07/21861497/pentagon-reboots-10b-jedi-cloud-contract-to-seek-proposals-for-joint-warfighter-cloud-capability-con" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">canceled the initial Jedi contract</a>.</li>
<li>Amazon had charged Trump with exploiting his animosity against Jeff Bezos.&nbsp;</li>
<li>Oracle said the single-vendor&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/21/10/23222818/oracle-loses-court-appeal-for-jedi-contract-bloomberg" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">contract was unfair</a>, while Google had withdrawn its bid in 2018 following a staff outcry for&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/21/11/23881896/google-to-bid-for-pentagon-cloud-computing-contract-oracle-ibm-may-join-too" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">working with the DoD</a>.</li>
</ul>