This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia Corp (NASDAQ: NVDA) stock has dropped 13% over the past month. The company's share price has fallen alongside declines in fellow chip stocks like Advanced Micro Devices, ARM Holdings, Taiwan Semiconductor Manufacturing Company, and ASML Holding NV.

On July 17, these companies' stocks fell victim to reports that the Biden Administration was considering imposing more stringent sanctions on China's access to advanced chips. Then, a massive outage for cybersecurity firm CrowdStrike on July 19 caused mayhem worldwide, crashing countless systems and exacerbating the tech market sell-off.

While falling stock prices can be concerning, they can also create attractive investment opportunities. A tumbling share price has boosted the value of Nvidia's shares, with its price-to-earnings (P/E) ratio declining 13% in 30 days. Meanwhile, the company maintains massive potential over the long term as it continues to profit from its dominant role in tech and artificial intelligence (AI).

So, here's why it's not too late to buy Nvidia stock in the second half of 2024.

The victim of a recent sell-off

The tech-heavy Nasdaq Composite index has dipped 4% since Monday, July 15, amid rising tensions between the United States and China. A Bloomberg report on Wednesday described a proposed measure called Foreign Direct Product Rule (FDPR), which would allow the US to "impose controls on foreign-made products that use even the tiniest amount of American technology."

More stringent restrictions illustrate the increasingly strained relationship between the US and China. Wall Street has grown concerned that the situation could disrupt the supply chain in the chip market, leading chip companies to eventually lose access to Taiwan Semiconductor Manufacturing Company's foundry services. As a result, companies like Nvidia, which outsources its manufacturing to TSMC, have seen their stock prices take a hit.

However, long-term-minded investors shouldn't be too worried, with domestic manufacturing options in the works. TSMC, Intel, Samsung, and are building chip plants in the US, increasing the country's foundry capacity and lowering the market's reliance on the Greater China region and, more specifically, Taiwan.

The new facilities are expected to open before the end of the decade, with Intel's Ohio plant set to be operational between 2027 and 2028. Meanwhile, the company is opening factories in other overseas regions, including an $18 billion investment in a plant in Ireland.

As a result, Nvidia's business will likely be secure over the long term. The company's prominent role in tech and the chip market far outweighs recent geopolitical issues, making its stock an attractive option after a sell-off.

Nvidia is powering multiple industries with its hardware

Chip stocks have captivated Wall Street since the start of 2023, and for good reason. Sectors across tech increasingly require powerful hardware to take their products to the next level, making companies like Nvidia critical to the industry's future. And few chipmakers have achieved Nvidia's nearly unrivaled dominance.

The company emerged as the biggest threat in AI last year, achieving an estimated 70% to 90% market share in AI chips thanks to the success of its graphics processing units (GPUs). Virtually every major tech company has become a client of Nvidia, with its chips used by Amazon, Alphabet, Microsoft, Meta, and ChatGPT Developer OpenAI.

However, the company was a prominent figure long before the recent boom in AI. As a leading chipmaker, Nvidia's hardware powers dozens of industries. Its chips can be found running consumer products like laptops, custom-built PCs, cloud platforms, video game consoles, e-commerce logistics, and self-driving technology.

In fact, Nvidia is the exclusive supplier of chips to Nintendo's Switch console, the third-best-selling game console of all time. The partnership has catapulted Nvidia's chips into mainstream use, with 141 million units sold. Meanwhile, a sequel to the Nintendo Switch is expected to launch before the end of March 2025, which could offer Nvidia a boost in earnings.

Nvidia has growth catalysts throughout tech thanks to the high demand for its hardware, which will likely see its stock rise for decades. As a result, it's not too late to buy Nvidia's stock this year — the stock could be a worthwhile investment after the recent price dip.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is it too late to buy Nvidia stock in the second half of 2024? appeared first on The Motley Fool Australia.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• 3 fantastic ASX ETFs to buy this month
• Is this the best Vanguard ETF money can buy right now?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Amazon, CrowdStrike, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and Nintendo and has recommended the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Alphabet, Amazon, CrowdStrike, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) has reached record highs over the last year as it has become the poster child for a boom in the artificial intelligence (AI) market. Since the start of 2023, the chipmaker's stock has skyrocketed 174%, while quarterly revenue and operating income have climbed 93% and 149%. Wall Street has rallied behind Nvidia as it has achieved a majority market share in AI graphics processing units (GPUs) just as demand for the chips has soared.

Uncertainty about how long Nvidia can keep up its bull run weighed on its stock toward the end of June and the start of July when it fell as low as $118 per share after hitting a high of $135 per share just days before. However, its share price rebounded on July 3, rising 4% as the slump proved temporary.

Meanwhile, the company still has plenty to be bullish about. Nvidia has years of dominance in the chip market under its belt, suggesting its role in AI is unlikely to dissipate any time soon. The chipmaker also has new product launches in the works that will likely continue to boost sales and earnings to retain its lead in the retail chip market.

Here's why Nvidia stock could help you become a millionaire over the long term.

Nvidia has a long history of success in the chip market

Nvidia initially made a name for itself by carving out a dominating role in video games. The company was one of the first to begin selling chips to the consumer market, with gamers using its GPUs to build high-powered gaming PCs. Nvidia's success in the industry has seen its desktop GPU market share rise from 65% in 2014 to 88% in the first quarter of 2024.

A lead in gaming chips perfectly positioned the company to gain a dominant role in data-center GPUs and, eventually, AI. In fact, according to IoT Analytics, Nvidia is responsible for more than 90% of the data-center GPU market. Many of these data centers have become crucial to the development of the AI market, powering platforms like Amazon Web Services, Microsoft's Azure, and OpenAI's ChatGPT.

Nvidia has managed to retain its dominance in GPUs in different sectors across tech despite the persistence of companies like Advanced Micro Devices and Intel. For instance, while Nvidia has added more than 20 points to its desktop GPU market share over the last decade, AMD's has actually fallen from 33% to 12%. Meanwhile, Intel briefly had a 4% share in Q1 2023, which has since dwindled to 0%.

The best is yet to come

We're only about a year into the recent boom in AI, suggesting developers have barely scratched the surface of what's possible with the generative technology. As the market progresses, chip demand is only likely to continue rising. Meanwhile, Nvidia is leveraging its lead to steer the industry in its favor and challenge its competitors.

In 2024, Nvidia transitioned to a yearly release schedule for new chips when a two-year cycle was previously the market standard. The shift forced AMD and Intel to follow suit. As a result, Nvidia is gearing up to launch its Blackwell line chips, the company's next generation of AI training processors. CEO Jensen Huang noted at the announcement, "The Blackwell architecture platform will likely be the most successful product in our history and even in the entire computer history."

A leading reason for Nvidia's success is the software platform accompanying its AI chips, which it calls its Compute Unified Device Architecture (CUDA). Developers worldwide have grown accustomed to this ecosystem, with switching akin to how a user of Apple's iPhone might feel about switching to a Samsung phone. Consequently, Nvidia's competitors will likely face an uphill battle trying to gain traction in AI.

Data by YCharts.

Moreover, the data in the table above shows the significant financial lead Nvidia has achieved over its competitors. Since last July, Nvidia's operating income and free cash flow have skyrocketed far higher than AMD or Intel's, indicating Nvidia is far more capable of continuing to invest in its business and retain its market dominance.

Despite recent growth, Nvidia's price/earnings-to-growth (PEG) ratio sits at less than one, indicating its stock remains a value. Alongside nearly unrivaled dominance in the budding AI market, Nivida is a screaming buy this July and a stock that could make you a millionaire with the right investment. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Could Nvidia stock help you become a millionaire? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• 3 fantastic ASX ETFs to buy this month
• Is this the best Vanguard ETF money can buy right now?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) won over Wall Street last year, illustrated by its more than 280% stock growth since March 2023. The company's years of dominance in graphics processing units (GPUs) perfectly positioned it to profit significantly from a boom in artificial intelligence (AI) as demand for the chips skyrocketed. As a result, Nvidia's quarterly revenue and free cash flow are up 207% and 430%, respectively, in the last 12 months.

The company's meteoric rise has some analysts questioning whether the company has much more to offer investors in 2024. However, trends in the chip market indicate Nvidia will have little problem retaining its leading market share in AI GPUs, despite new offerings from Advanced Micro Devices and Intel.

Meanwhile, the AI market is nowhere near hitting its ceiling. It's projected to expand at a compound annual growth rate of 37% until at least 2030. The sector's potential indicates GPU demand is likely to continue rising for the foreseeable future, with Nvidia well-equipped to continue enjoying significant gains from AI.

Here's why Nvidia remains an attractive buy in March.

Nvidia will likely retain its AI dominance despite rising competition

Nvidia's success in the AI chip market has led to countless tech companies announcing ventures into the industry. Leading chipmakers AMD and Intel plan to begin shipping new GPUs soon in an attempt to challenge Nvidia's market share. Meanwhile, companies new to the sector are also joining in, as Amazon and Microsoft announced new AI chips last year.

However, market trends suggest Nvidia's supremacy will be challenging for competitors to overcome. The company has held an over 80% market share in desktop GPUs for years, despite AMD's and Intel's presence in the sector.

Intel only entered the industry last year, while AMD's history in desktop GPUs spans decades. Still, AMD's GPUs only account for about 10% of the market.

A similar situation has occurred in another area of the chip market. Intel was a king in central processing units (CPUs) for years, with an 82% market share at the start of 2017 when AMD landed on the scene with its Ryzen line of CPUs. AMD has managed to steal a significant share from Intel since then. However, Intel is still responsible for most of the CPU market; its share is above 60% and AMD's is at 36%.

Nvidia's estimated 80% to 95% market share in AI GPUs could falter slightly as competition heats up. However, history indicates the company will retain its overall lead and continue to see major gains from AI for years.

Projections show Nvidia's stock should continue beating the S&P 500

Nvidia has stunned Wall Street over the last year, posting multiple quarters of record earnings. In the fourth quarter of 2024 (ended in January), the company's revenue increased by 265% year over year to $22 billion. Meanwhile, operating income jumped 983% to nearly $14 billion. The monster growth was primarily from a 409% increase in data center revenue, reflecting increased chip sales.

While a spike in AI GPU sales is mainly responsible for Nvidia's stellar financial growth, the chipmaker is also profiting from an improving PC market. Spikes in inflation prompted steep declines in PC sales, with shipments dipping 16% in 2022 and continuing to fall for most of 2023. However, recent reports indicate the market is finally showing signs of recovery.

According to Gartner, PC shipments popped 0.3% in Q4 2023, marking the first such increase in over a year. Market improvements have been reflected in Nvidia's sales, with its PC-centered gaming segment reporting an 81% rise in revenue in Q3 2024 (which ended October 2023).

A leading role in AI and a recovering PC market suggests Nvidia has a strong outlook in the coming years. Earnings-per-share (EPS) estimates seem to support this.

Data by YCharts.

The above chart shows Nvidia's earnings could hit $34 per share by fiscal 2026. Multiplying that figure by its forward price-to-earnings ratio of 38 yields a stock price of $1,292.

Considering the company's current position, that projection would see Nvidia's stock rise 40% over the next two years. The company may not replicate last year's growth but would still beat the S&P 500's 22% growth since 2022.

As a result, Nvidia still has much to offer new investors and is an exciting buy right now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia stock a buy? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• 3 fantastic ASX ETFs to buy this month
• Is this the best Vanguard ETF money can buy right now?

Dani Cook has no position in any of the stocks mentioned. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Amazon, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner and Intel and has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool Australia has recommended Advanced Micro Devices, Amazon, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The launch of OpenAI's ChatGPT in November 2022 triggered a boom in artificial intelligence (AI), with countless tech firms pivoting their businesses toward the budding industry.

According to Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030. That trajectory would see the sector exceed a value of $1 trillion before the end of the decade, suggesting there's no better time than the present to invest in AI-minded companies.

Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) are two attractive options, with both companies investing heavily in the market and active in one of the biggest growth areas of AI: cloud computing. These companies have emerged as some of the biggest threats in the industry and could deliver significant gains over the long term.

So, let's take a closer look at these companies and determine whether Microsoft or Amazon is the better AI stock right now.

Microsoft

Microsoft was an early investor in AI, sinking $1 billion into OpenAI in 2019. The company has since increased its investment, achieving a 49% stake in the start-up. The partnership with OpenAI has granted Microsoft exclusive access to some of the most advanced AI models, which it has used to bring upgrades across its product lineup.

Over the last year, elements of ChatGPT have been integrated into Microsoft's search engine Bing, a range of new AI tools have been added to its cloud platform Azure, and its various Office services now offer improved productivity with the help of AI.

Microsoft is a behemoth in the tech world, with millions of consumers and businesses relying on its software. The popularity of its services and OpenAI's tech could be a powerful combination over the long term.

In the first quarter of 2024 (ending September 2023), Microsoft posted 13% in year-over-year revenue growth, beating Wall Street estimates by nearly $2 billion. Significant gains came from the company's cloud and productivity segments, which saw revenue rise 19% and 13%, respectively. These divisions are hyperfocused on AI development, which appears to be paying off.

Alongside free cash flow that hit $63 billion last year, Microsoft is on a promising growth path. The company has the brand power and financial resources to become one of the biggest threats in AI.

Amazon

Amazon pulled off an impressive turnaround in 2023 after its stock plunged roughly 50% the year before. Since last January, its shares have soared over 62% thanks to a return to profitability in its e-commerce business and significant potential in AI.

Over the last year, various cost-cutting measures have seen Amazon's free cash flow skyrocket 427% to $16 billion. The company has restructured its business to prioritize profit growth and is, therefore, investing heavily in its most profitable division: Amazon Web Services (AWS).

The cloud platform is responsible for over 62% of Amazon's operating income despite earning the lowest revenue out of its three segments. In Q3 2023, AWS achieved nearly $7 billion in profits, representing growth of 29% year over year.

The cloud market is expanding quickly, boosted by the emergence of AI. Businesses are increasingly looking for ways to boost efficiency with the help of AI and turning to cloud services to do so. Meanwhile, AWS' leading 32% market share in cloud computing positions it well to see big gains as AI develops.

Amazon's dominant position in cloud computing makes the company one of the best ways to invest in AI.

Is Microsoft or Amazon the better AI stock?

Microsoft and Amazon have emerged as two of the biggest names in AI over the last year. These companies have similar potential in the industry thanks to booming cloud businesses and lucrative opportunities in other areas of tech.

As a result, the best way to determine the better AI stock is to consider which is trading at a better value.

Data by YCharts. PS Ratio = price-to-sales ratio. PEG Ratio = price-to-earnings-to-growth ratio.

This chart compares Amazon and Microsoft's price-to-sales (P/S) and price-to-earnings-to-growth (PEG) ratios. These are helpful valuation metrics as they take into account a company's financial health against its stock price.

P/S is calculated by dividing a firm's market cap by its revenue. Meanwhile, PEG divides a stock's price-to-earnings ratio by the growth rate of its earnings. For both metrics, the lower the figure, the better the value.

In this case, Amazon's stock is a bargain compared to Microsoft. So, if you're between these two AI stocks, Amazon is the better buy this month and a screaming buy at the start of 2024. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better AI stock: Microsoft vs. Amazon appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• The huge retail trend many are missing
• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio

Dani Cook has no position in any of the stocks mentioned. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Microsoft. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Macroeconomic issues and concerns triggered a dramatic sell-off in the tech market in 2022 as the Federal Reserve boosted benchmark interest rates to fight inflation. However, the recent advances in artificial intelligence (AI) seemed to be precisely what the sector needed to get back on its feet. The surge in interest in AI has caused a host of tech stocks to recover and soar in 2023.

One of the biggest winners of the AI boom so far has been Nvidia (NASDAQ: NVDA), which has seen its stock rise 242% year to date. The company has become the go-to chip supplier for nearly the entire AI market, and it likely has much to offer stockholders over the long term as the industry continues to develop.

However, software-focused companies like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are another attractive way to back the AI market. The Google parent has used the last year to invest heavily in the sector and plans to launch a highly anticipated large language model, dubbed Gemini, next year.

These companies are at different stages of their journeys into the AI business, and both could be lucrative ways to profit from the sector over the long term. But which looks like the better buy now?

Nvidia

Nvidia has been the preeminent name in graphics processing units (GPUs) for years, controlling 87% of the market as of Q2 2023 (per Jon Peddie Research). Prior to last year, one of Nvidia's biggest advantages was its popularity with PC gamers, who use the company's GPUs to power their custom-built gaming machines. However, advances in AI have changed the dynamic for the company.

Nvidia's most powerful GPUs are crucial hardware for companies seeking to develop, train, and deploy AI models, and demand driven by those uses has sent Nvidia's chip sales skyrocketing this year. In its fiscal Q3 2024 (which ended October 30), revenue rose 206% year over year, while operating income increased by over 1,600%. The company massively benefited from soaring demand for GPUs, which saw its data center segment achieve revenue growth of 279%.

Nvidia's business will likely continue growing as tech companies increasingly require more powerful chips to take their products to the next level. Yet, it will face more competition in 2024 as various chipmakers challenge Nvidia's dominance by launching new GPUs of their own. Consequently, a long-term perspective will be crucial to successfully invest in Nvidia, as its stock might not be able to replicate 2023's growth any time soon.

Alphabet

Alphabet's stock has risen by 54% since Jan. 1. While that figure might pale in comparison to Nvidia's rally this year, Alphabet potentially has more room for growth over the long term.

The company owns some of the world's most recognizable brands, such as Google, YouTube, and Android, giving it almost endless opportunities to monetize its AI technology. These brands attract billions of users daily and could be leading drivers in the public's adoption of AI.

Cloud competitors Amazon and Microsoft have slightly overshadowed Alphabet in AI this year. However, in 2024, Alphabet plans to launch Gemini, a large language model based on massive data sets that is expected to be highly competitive with OpenAI's GPT-4.

Gemini could strengthen Alphabet's position in AI as it uses the model to improve cloud services, offer more efficient advertising on Google Search and YouTube, refine video recommendations on YouTube, and even bring AI upgrades to productivity platforms like Google Docs.

Alphabet has the brand recognition and user base to see significant success in AI over the long term, making its stock an attractive option right now.

Is Nvidia or Alphabet the better buy?

Nvidia and Alphabet operate in very different areas of tech and AI, with one a leader in hardware and the other dominating software and services. Both companies have solid growth potential over the long term, and it would be hard to go wrong with either stock. However, Alphabet's stock is trading at a bargain valuation compared to Nvidia.

Data by YCharts

Alphabet's price-to-earnings and price-to-free-cash-flow ratios are significantly lower than Nvidia's, suggesting it offers far more value. Alphabet's metrics could make it the best and cheapest way to invest in AI.

While Nvidia's meteoric rise in 2023 has benefited prior investors, it has made its stock too expensive for new ones. Meanwhile, the Google parent arguably has similar potential in AI, yet is trading at a substantially better value. As a result, Alphabet is the better buy, and an exciting opportunity ahead of Gemini's launch next year. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better Buy: Nvidia vs. Alphabet stock appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month
• 3 fantastic ASX ETFs to buy this month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The artificial intelligence (AI) market has exploded this year, with the launch of OpenAI's ChatGPT last November reigniting interest in the technology. Countless stocks have benefited from the sector's growth, leading the Nasdaq-100 Technology Sector index to soar 50% year to date.

Nvidia (NASDAQ: NVDA) has been one of the biggest winners amid all the AI excitement. Its years of dominance in graphics processing units (GPUs) perfectly positioned it to profit substantially from the market's growth as the chips are crucial to developing AI models. As a result, Nvidia shares have skyrocketed 237% since 1 January, alongside soaring earnings.

While Nvidia has been one of the best investments in 2023, there are better options going into the new year. Investors interested in AI might be better off now buying stocks in companies that are at earlier stages in their AI expansions and have more room for growth over the long term.

So forget Nvidia. Here are two AI stocks that are much better buys right now.

Alphabet: The best bargain in AI

While chipmakers like Nvidia are attractive ways to invest in AI, software companies developing the platforms that will get the technology into billions of consumers' homes should not be overlooked. As the home of potent brands such as YouTube, Android, and the many products under Google, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is an attractive option.

This year, competitors such as Amazon and Microsoft have slightly overshadowed the company in AI. However, the chart below shows that Alphabet's stock is now one of the biggest bargains in AI, with its lower price-to-earnings ratio offering far more value than these companies -- and Nvidia.

Data by YCharts

Alphabet isn't new to AI, with CEO Sundar Pichai reiterating in May that the tech giant is seven years into its "journey as an AI-first company". However, Alphabet has ramped up its expansion in the market in 2023. The company is currently focused on developing Gemini, a large-language model based on massive data sets. It is expected to launch in the first quarter of 2024 and be highly competitive with other models on the market.

Moreover, Alphabet is an attractive AI stock given its ability to use the technology to boost multiple areas of its business. As Alphabet is one of the biggest names in advertising, AI will likely help the company better serve ads on Google Search and YouTube. Meanwhile, AI can improve user experience on popular platforms like Gmail, Google Docs, Maps, Chrome, and more.

The company also has a solid position in the cloud market with Google Cloud, where demand for AI services is soaring as businesses seek tools to integrate the technology into their daily workflows.

Alphabet's annual revenue has soared 107% over the last five years, with operating income up 130%. The company has proven its reliability over the years and could go far with the help of AI. Given the endless opportunities to eventually monetize its AI offerings, Alphabet stock is an attractive alternative to Nvidia.

AMD: A plan to challenge Nvidia's dominance

After Nvidia, Advanced Micro Devices (NASDAQ: AMD) has been one of the highest-soaring chip stocks this year -- rising 86% since 1 January. While that barely holds a candle to Nvidia's growth, the company is still in the early stages of its AI expansion, which could offer new investors more gains over the next year.

AMD has a stellar outlook in 2024 as it prepares to ship a new AI chip and benefit from a recovering PC market. In June, the company unveiled the next instalment in its MI300 line of chips, which it described as its most powerful GPU ever. The new chip will launch next year and is designed to challenge Nvidia's offerings.

Alongside new hardware, AMD has made two acquisitions in 2023 to push its AI software further. Over the last few months, the company has purchased start-ups Nod.ai and Mipsology, which will likely become critical to its data center business and allow it to offer AI developers a top-tier experience when utilizing its GPUs.

AMD suffered steep declines in its business last year as macroeconomic challenges hit the entire tech market. However, it's benefiting from a gradual recovery in the PC industry, which saw its client segment return to profitability in Q3 2023 and post revenue growth of 42%. The company is heading into the new year with exciting prospects in multiple parts of its business and could be one of the best investments this month.

Nvidia's market capitalization soared to over $1 trillion this year, while AMD's currently sits at about $195 billion. Despite often being compared, these companies are at vastly different stages in their development. AMD's lower market cap could indicate it has much more room for growth and could be a far more lucrative AI stock over the long term.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Forget Nvidia: These artificial intelligence (AI) stocks could be much better buys appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• The huge retail trend many are missing
• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The streaming market has become an unpredictable battleground in 2022 as multiple companies duke it out for the top spot. Walt Disney (NYSE: DIS) and Netflix (NASDAQ: NFLX) have sent investors on a roller-coaster ride throughout the year, with the companies seemingly passing the streaming crown back and forth as they one-up each other on subscriber count from quarter to quarter. 

These companies have immense potential and have both expanded into new markets over the last few years. Disney dipped its toes into the streaming market with its Hulu service many years ago, but the launch of Disney+ in 2019 saw it enter the market in full force. Meanwhile, Netflix entered the gaming industry with the launch of its Netflix Games in 2021.

Netflix and Disney have been compared countless times in 2022 and will likely continue to be as they strive to dominate the streaming world. Both companies' stocks have dipped considerably since January, prompting investors to wonder if now is the best time to buy. So, let's see whether your money is better off with Disney or Netflix. 

Netflix

As one of the leading founders of the streaming industry, Netflix enjoyed many years largely unchallenged. But its market share has gradually decreased since the introduction of platforms such as Disney+, Warner Bros. Discovery's HBO Max, and Apple's Apple TV+, all of which entered the market between 2019 and 2020. From the first quarter of 2020 to the second quarter of 2022, Netflix fell from 42% market share to 26%.

As a result, Netflix experienced its first subscriber losses in a decade in the first quarter of 2022, shedding 200,000 paid members. The loss led its stock to plunge 37% in a single day on April 20, with the share price down 51% year to date as of Oct. 22. Despite a troubled beginning to the year, Netflix has seen significant improvements to its business since then. 

In the second quarter of 2022, it forecast a loss of 2 million subscribers but reported a more modest loss of 970,000. Then on Oct. 18, Netflix released its third-quarter 2022 results, which showed an increase of 2.4 million members, beating a forecast of 1 million.

However, the most significant improvement to Netflix's business isn't its return to subscriber growth, but its shift in strategy, which prioritizes moves that will grow its earnings and free cash flow in the long term. 

Netflix's plan to launch an ad-supported tier on Nov. 1 and monetize unpaid views by cracking down on password sharing in 2023 are ways for the company to boost its average revenue per membership and earnings over time. Moreover, if done right, its gradual expansion into games could also pay off in the long term. 

Disney

Like many companies that rely on consumer demand, Disney's share price has tumbled. It's down 37% since January. Fears of a recession and rising inflation have made investors wary of entertainment and streaming stocks because such companies' services could be the first to go for consumers cutting discretionary spending. 

But Disney is a solid buy for the long term. Throughout the pandemic lockdowns prevalent in 2020 and 2021, when it suffered significant losses from park closures, the company grew its flagship streaming service, Disney+. The platform launched at a time when home-bound consumers drove up demand for streaming services, offering Disney+ a massive boost right out of the gate. 

As a result, the company has come out the other side with solid momentum. Guests returned to its parks, sending revenue from that segment soaring 70% to $7.39 billion in its latest quarter. Meanwhile, its streaming business surpassed Netflix in August for the most subscribers.

Disney is a varied company whose revenue stems from multiple businesses, including content released via both theaters and streaming, licensing agreements across numerous platforms, amusement parks, and more. Meanwhile, Netflix is still finding its footing. The streaming titan has big plans to diversify and bolster its business, but it is still in the early stages.

Consequently, Disney is the more secure stock for the long term. Netflix has taken promising strides in 2022 to improve its business, but Disney has spent decades honing its dominance in multiple markets, making it strong enough to invest in a new streaming venture. And Disney stock is selling at a bargain with a price-to-earnings ratio less than half of what it was a year ago.

So now is a great time to buy Disney stock.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better buy: Disney vs. Netflix stock appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 ASX ETFs with market-beating potential over the next 10 years
• Are these the best ASX ETFs to buy with $1,000 in May?

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Netflix, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Warner Bros. Discovery, Inc. and has recommended the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple, Netflix, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple's (NASDAQ: AAPL) stock has fallen about 10% since mid-September. The leading causes for the dip have been numerous reports that sales for its base-model iPhone 14 and 14 Plus have been underwhelming and an overall slowdown of consumer demand in the tech market.

As the highest-valued company in the world, with a market cap of $2.37 trillion, Apple is one of the world's most scrutinized companies. The last two months have been no different as analysts pick apart the company's September iPhone launch and its 2022 iPad lineup unveiling in mid-October.

Understanding the strategy behind Apple's recently announced products can be a great way to predict how far your investment will go. So, here's why Apple's new products have been making headlines. 

A confusing iPad launch 

On Oct. 18, Apple unveiled its 2022 iPad refresh by introducing a newly designed base iPad and upgraded iPad Pros. Time will tell how the new Apple tablets fare with consumers, but the media has been quick to criticize the devices. Bloomberg has called the new iPad lineup "perplexing," while Techradar said its "software and now hardware is a mess."

The primary reason for the confusion lies in upgrades to the entry-level iPads, but not the Pro versions. The base iPads received a redesign with new colors, relocation of the front-facing camera to the landscape's edge, and a revamped Magic Keyboard accessory. Meanwhile, the 2022 iPad Pro models received the smallest update in their history. They were bumped up to the M2 chip, making them 15% faster than their predecessors, along with other minor performance upgrades.

However, the higher-cost versions didn't receive the same optimal camera relocation or the redesigned Magic Keyboard. The Pro models didn't even receive the customary camera or display improvements that consumers have come to expect year to year. As a result, Apple has given consumers little reason to upgrade to the 2022 iPad Pro and created confusion by omitting features given to the base iPad.  

Moreover, despite the base iPad's more enticing improvements, it has not been left unscathed by criticism. The tablet has undergone a significant redesign, including its charging port going from lightning to the market-preferred USB-C. However, it is still only compatible with the 2015 Apple Pencil accessory that charges via lightning rather than the redesigned 2018 version that charges magnetically along the side of higher-tiered iPads. As a result, users need to use an adapter to charge their Apple Pencil with the new base iPad.

iPhone 14 Plus is a bust

In addition to a confusing iPad lineup, Apple has reportedly faced dismal demand for its iPhone 14 Plus, which hit stores on Oct. 7. The base-model iPhone was announced on Sept. 7, along with two new Pro models and a standard-sized base model. Apple had high hopes for the larger iPhone 14 as it signified a shakeup in the lineup. There hasn't been a Plus-sized base model since 2017's iPhone 8 Plus, as the larger iPhones have been exclusively Pro versions.

However, the rising cost of living and a difficult price point led Apple to halt production of the iPhone 14 Plus on Oct. 18 to reassess demand. According to The Information, two of the company's suppliers are lowering output by 70% and 90%.

The iPhone 14 Plus is at a logical price point in the lineup, coming in at $899, while the smaller iPhone 14 is $799 and the Pro models are $999 and $1099, respectively. However, looking at Verizon plans, the 14 Plus is priced at $24.99/month, while the 14 Pro Max is $30.55/month, and the 13 Pro Max is $10/month. Since many Americans will likely procure their new iPhones through a carrier plan, there is little reason to get the Plus.

Consumers wanting the biggest iPhone can get the 14 Pro Max with all of the new features for an extra $5.56 a month, or those with older phones can get the 13 Pro Max, which is 60% cheaper than the 14 Plus and has more features. 

Should you buy Apple stock?

Troubled iPhone sales are worrying, as the popular devices have made up 40% to 70% of Apple's revenue for the last decade. In fact, its iPhone sales comprised 49% of Apple's revenue reported for the most recent quarter of 2022.

With these details in mind, it's certainly possible that the tech company may be heading toward a weak quarter. Even so, Apple likely won't stay down for long. After all, Apple is home to some of the world's most innovative and popular products. This unique strength helped grow Apple stock 270% over the past five years despite a pandemic and the reduced demand for iPhones in 2022.

The company reported $20.79 billion in free cash flow in its latest quarter, which suggests it is fully equipped to overcome a year of weak iPhone sales. Ultimately, Apple stock remains an excellent investment for the long term. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why is everyone talking about Apple stock? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• 5 ASX ETFs that could supercharge your portfolio

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Microsoft (NASDAQ: MSFT) has grown exponentially in its 47 years of business. Despite a recent market downturn, the company's stock has grown over 200% in the last five years, thanks to the potency of brands such as Xbox, Windows, Azure, and Office. These brands' success and market share will likely help the company continue growing for years to come.

However, Microsoft's stock has fallen 29% since January, along with a long list of other tech stocks. Investors who haven't been able to stay up to date on recent market trends might be perplexed as to why a dominant company like Microsoft has suffered such steep declines in 2022. Let's find out. 

A beaten-down market

Microsoft has been among the many tech stocks hit by rising inflation and slowing consumer demand in 2022. Even though the company has suffered a 29% decline over the year in its share price, other companies have suffered more. For instance, PC component leaders AMD (NASDAQ: AMD) and Nvidia have seen their stocks fall about 60% in the same period. 

While consumer demand has fallen across various industries as the cost of living continues to rise, the PC market has been one of the hardest hit. According to Gartner, PC shipments fell 19.5% in the third quarter of 2022, with the overall market declining by 17.3%.

Most recently, on 7 October, Microsoft's stock dipped 4.5% after AMD pre-announced plummeting PC sales for its September quarter. AMD projected revenue of $5.6 billion vs. analysts' expectations of $6.7 billion, as its client chip sales were down 53% quarter over quarter. The sharp decline for AMD led Microsoft investors to doubt the Windows company's PC-related business. 

Microsoft's PC business is reported under its more personal computing segment, which made up 30% of revenue in the company's fiscal year 2022, which ended 30 June. While Microsoft's prominence in the PC market has triggered investor concern in 2022, its diversified revenue suggests the company will be better off than other companies in weathering market declines. 

Is Microsoft stock a buy?

In fiscal year 2022, Microsoft's best-performing segments were its productivity and business processes segment (which include Office and LinkedIn) and intelligent cloud (revenue from Azure). The former made up 31.9% of Microsoft's revenue in 2022 and saw a rise of 18% year over year, while the latter was responsible for 37.9% of revenue and rose 25%.

Even the company's more personal computing segment isn't a total black cloud on the overall business. In addition to Windows and PC revenue, it includes earnings from Microsoft's Xbox consoles and services, which grew 16% throughout the year. The company may be most known for its influential role in the PC market, but its business has expanded to include far more lucrative markets over the years. 

The cloud market alone was worth $206.5 billion as of Q2 2022, with Microsoft's Azure having the second biggest market share at 21%. According to Grand View Research, the market will grow at a rate of 15.7% from 2022 to 2030. Moreover, Microsoft's segment growth of 25% since 2021 proves the lucrative prospects of its operations in this industry.

Additionally, Microsoft's trailing free cash flow as of 30 June stood at $65.2 billion, matching Alphabet's result within a rounding error but trailing Apple's $107.6 billion. The Windows company will likely see some form of decline in the next year as fears of a recession grow. However, its varied businesses and free cash flow suggest the company is strong enough to overcome it. 

Microsoft's decrease of 29% in its share price in 2022 makes it an absolute bargain, considering its long-term prospects. With the company's substantial market share in promising industries and the funds to carry it through sustained market downturns, an investment in Microsoft is a no-brainer.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Microsoft stock is down 29% this year appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

When it comes to fast-growing stocks, it's best to seek out companies with consistent revenue gains over the long-term. Multiple growth stocks have been hit hard in 2022 as many are key players in the tech industry. 

Companies such as Netflix, Inc. (NASDAQ: NFLX), Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia Corporation (NASDAQ: NVDA) have suffered significant declines in their share prices since January as inflation increases have led to reduced consumer spending and investors slowly backing away from the affected companies.

However, each of these companies continues to be a dominating presence in its respective industry and has seen substantial growth in revenue over the last three years, as can be seen in the table below. 

Data source: YCHARTS.

These three top-growing stocks have a history of growth over the years and are likely to provide significant gains for investors willing to wait. Let's have a look. 

Netflix

This streaming titan has seen exponential growth since its online-video platform launched in 2007. Its annual revenue grew at an average growth rate of 28%.

However, Netflix has had a rough 2022. Its stock has dipped 62% since January on the back of losing over 1 million subscribers in its first two quarters. However, the company projects a gain of 1 million new members in Q3 2022, which could end its subscriber declines.

Moreover, Netflix will launch its ad-supported tier in November, providing a more budget-friendly subscription option that is likely to boost revenue. On Sept. 15, Evercore ISI analyst Mark Mahaney upgraded Netflix's stock to buy. He also projected the ad tier will bring in about $2 billion in incremental revenue by 2024, with another $500 million to $1 million of incremental growth generated from crackdowns on password sharing. 

With the addition of advertising revenue, restrictions on password sharing, and Netlfix's recent venture into gaming, the company is likely to continue growing for years to come. 

Alphabet

As one of the fastest-growing companies in the world, Alphabet has revolutionized multiple aspects of the tech industry. The company is home to potent brands such as Android, Chrome, YouTube, and Google, which each have a substantial market share in their corresponding industries. Alphabet's dominance in markets such as search engines, smartphone operating systems, online-video sharing, and internet browsers has helped it become a digital-advertising star. 

The company has retained a leading position in digital advertising since at least 2016, with a 28% share in 2022. In fact, nearly 93% of the company's $69.6 billion revenue came from ads in the second quarter of 2022, when combining Google and YouTube's advertising earnings. 

As a result, investors have grown concerned that if inflation keeps rising, companies might slash their advertising budgets, equally slashing Alphabet's revenue. However, according to market research firm Insider Intelligence, U.S. digital ad spending is expected to rise 31% from $239.89 billion in 2022 to $315.52 billion in 2025.

Additionally, companies like Netflix and Disney are increasingly turning to ads to reduce subscription fees for budget-conscious consumers. Other subscription-based businesses could turn to Alphabet's Google Network to supplement a reduced membership price with ads. 

Nvidia

Nvidia has been one of the hardest-hit stocks in 2022, down almost 60% year to date. The company is a leader in graphic processing units (GPUs), responsible for 95% of the market. The company's GPUs power gaming PCs around the world and played a crucial role in the crypto-mining market.

As a result, this year has been a perfect storm for Nvidia as slumps in the PC market and changes to how the cryptocurrency Ethereum is produced decreased demand for GPUs. 

Despite a rough year, the company's outlook is positive. Nvidia has made a name for itself in the gaming community, and its expansion into artificial intelligence (AI) is very promising. The company's chips are critical components in the machines responsible for handling more than 90% of all AI workloads in data centers worldwide. Furthermore, according to Grand View Research, the AI market is expected to expand at a compound annual rate of 38.1% from 2022 to 2030.

The GPU market may be down this year, but the device remains a crucial component in millions of PCs worldwide. Demand won't be down forever, with Nvidia's data center business likely to continue expanding. Its data center business was responsible for 56% of Nvidia's revenue in the latest quarter, with the segment seeing a 60% increase year over year. 

Nvidia is a fast-growing company and an excellent buy for investors in it for the long haul. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 of the top-growing stocks on Earth appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 ASX ETFs with market-beating potential over the next 10 years
• Are these the best ASX ETFs to buy with $1,000 in May?
• 5 ASX ETFs that could supercharge your portfolio
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Nvidia, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Nvidia, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As one of the most successful stock pickers in history, Warren Buffett regularly inspires investors around the world. Some of those folks may be interested to know that Buffett's holding company, Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B), has taken a targeted interest in video game powerhouse Activision Blizzard, Inc. (NASDAQ: ATVI) throughout 2022. 

At the end of 2021, Berkshire Hathaway owned roughly 1.8% of Activision Blizzard. Buffett increased his stake in the games company more than once in 2022, with shares growing from 64.3 million to 68.4 million in August -- or about 8.7% of Activision. Let's take a look at why it has captured Buffett's interest.

A possible deal with Microsoft 

Buffett's move to increase his investment in Activision Blizzard was prompted by Microsoft Corporation's (NASDAQ: MSFT) announcement in January that it would acquire the gaming company for $95 per share in an all-cash transaction valued at $68.7 billion. The deal would be the biggest the gaming industry has ever seen, and thus attracted scrutiny from regulators around the world. Buffett garnered criticism back in April when Berkshire Hathaway first increased its investment in the company, as analysts believed the move was a gamble in the face of pending regulatory decisions.

However, Buffett's move to load up on Activision stock was a vote of confidence that the deal will be completed. The acquisition requires approval from various countries to ensure it does not lead to Microsoft becoming overly dominant in the video game market. The concern stems from Activision's franchise Call of Duty, the world's second-best-selling game series. In 2020 alone, more than 200 million people bought a total of $3 billion worth of products related to the franchise.

Under Microsoft's control, those games could give it a significantly greater edge in attracting players to its consoles and services over those of its competitors. While Activision Blizzard's game library would be a lucrative asset for Microsoft, the company is unlikely to become all-controlling in the market. Even with this acquisition, it would be just the third-largest video game company after Tencent and Sony -- a fact that bodes well for the deal's regulatory approval.

On Aug. 22, Saudi Arabia's regulator became the first authority to give the acquisition its stamp of approval. However, Microsoft most crucially needs sign-offs from the world's three main regulators: the U.S. Federal Trade Commission (FTC), the United Kingdom's Competition and Markets Authority (CMA), and the European Commission. Each of them has the power to block the deal or impose conditions. 

What will the acquisition mean?

As the Activision Blizzard acquisition would be an all-cash deal, investors in the gaming company would see their shares disappear from their portfolios, replaced with the cash value if the purchase goes through. Activision Blizzard stock sits at about $75 a share and has fluctuated in the range of $75 to $79 over the past month.

Consequently, prospective buyers stand to profit by a little over 26% at Microsoft's purchase price of $95 a share. The Berkshire Hathaway stake is currently worth about $5.1 billion, which will become $6.4 billion if the deal goes through.

Even if the acquisition does not occur, Activision Blizzard shares may still make a smart, long-term buy. The share price is still 28% below the height it reached in February 2021, before it began to plummet following negative reports about the company's treatment of its employees. Additionally, Buffett purchased a stake in Activision Blizzard before the Microsoft deal was announced, an indication that he believes in the outlook for the video game company.

How likely is regulatory approval? 

The CMA revealed on Sept. 15 that it planned to take an even more "in-depth" approach to its regulatory process, moving into phase two of its investigation. The British antitrust authority has expressed concerns that Microsoft's Activision Blizzard acquisition would be anti-competitive. The CMA's next step will examine whether the deal means that Microsoft could "withhold or degrade" Activision's content from competing consoles or services and whether it will "raise barriers to entry and foreclose rivals in cloud gaming services."

The main concern is that Microsoft will make Call of Duty exclusive to its Xbox consoles. However, Microsoft has already asserted that it has no plans to do so, which should mitigate antitrust concerns. It's possible that regulators could approve the deal with the stipulation that Activision titles cannot be made exclusive to Xbox consoles -- a condition that would not devalue the deal for Microsoft. 

Both parties have expressed optimism that the deal will go through. Activision Blizzard CEO Bobby Kotick said on Sept. 1 that the process is "generally moving along as expected," and said he expects it to be complete by June 2023. All in all, there seems to be a great deal of positivity surrounding the Activision acquisition, which has only been strengthened by Buffett's confidence in the stock. Now might be the best time to buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Warren Buffett loves this US stock appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• How to build massive wealth with ASX shares

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard and Microsoft. The Motley Fool Australia has recommended Activision Blizzard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

As the highest-valued company in the world with a market cap of $2.5 trillion, Apple Inc. (NASDAQ: AAPL) regularly makes headlines. However, public scrutiny often increases around September, when Apple regularly announces its updated lineup of iPhones and other products. 

This year has been no different as analysts attempt to gauge the success of 2022's iPhone 14 series. The launch has had highs and lows, with the costlier models seemingly outselling the base versions for the first time in years. 

Regardless of what might play out with Apple's latest iPhones, the company has consistently proven its resiliency in the market -- and that the MacBook manufacturer is an asset to any portfolio looking for long-term gains. 

Combating stagnation 

As smartphone technology advances, devices are becoming more powerful every year, offering more storage and longer battery life. As a result, tech companies are having an increasingly difficult time convincing consumers that a yearly upgrade is necessary. Apple has remained chiefly unscathed by smartphone stagnation as its ecosystem of interconnected products keeps consumers returning to the iPhone. However, its newest lineup of smartphones is the company's biggest push to stave off the phenomenon.  

On Sept. 7, Apple unveiled its 2022 lineup of smartphones, including a base model iPhone 14, a larger Plus version, the 14 Pro, and the 14 Pro Max. The smartphones saw Apple widen the gap between the base versions and Pros, pushing consumers toward the more expensive options. For instance, the Pro models received a 48-megapixel camera, up from 12 the previous year, a software update that integrates the camera cut-out into a helpful user interface tool called Dynamic Island, a faster A16 Bionic chip, and a new always-on display feature. 

Meanwhile, the iPhone 14 saw marginal improvements on 2021's 13, primarily including one extra core in its A15 Bionic chip, an extra hour of battery life, and satellite connectivity in the case of emergencies. As a result, consumers have flocked to the Pro models, with Apple analyst Ming-Chi Kuo reporting that 85% of iPhone 14 orders have opted for the Pro models.

However, not all headlines have been rosy concerning the costlier Pro models. Some users have experienced an issue that makes the rear-facing camera physically shake in third-party apps. Bloomberg reported on Sept. 19 that Apple would release an update to resolve the problem next week, but it remains to be seen whether it is a software or hardware issue. The company's stock doesn't seem to be affected by the reports so far, but Apple will be working hard to resolve the problem through a software update as a hardware issue would be costly. 

A winning business model

Apple's current strategy of pushing consumers toward its Pro models is excellent if it succeeds; however, it does pose some risks. In the second quarter of 2022, Apple sold about 37% more of the base model iPhone 13 and 13 Mini than the two Pro versions in the lineup. The difference is not uncommon, as the iPhone 11 also sold about 80% more than the Pro versions in the first half of 2020. Judging by previous years, the current iPhone 14 Pro models will need to sell significantly more than previous years to make up for the loss of base model sales. 

Despite a slightly questionable iPhone launch, Apple remains a company investors can count on. Its powerful ecosystem of products means that even in the case of poor iPhone sales, the company is likely to continue pulling revenue in from alternate sources. Apple's walled garden of products makes it easy to draw consumers in with just one product. For instance, iPhone users who upgrade their smartphones every three years are still likely to turn to products such as the MacBook or AirPods to fill other needs because of their connectivity with the iPhone.

That's also before mentioning Apple's Services business that includes monthly subscriptions for video streaming, music, a fitness platform, cloud storage, and more. The booming segment saw year-over-year revenue rise 12% in the third quarter of 2022, hitting $19.8 billion, and has become the company's second-biggest revenue stream after the iPhone.

So is Apple's stock a buy?

As one of the most innovative companies in the world, Apple is one of the top stocks to invest in for the long-term. In 2022, tech stocks have suffered considerably on the back of inflation rises and declines in consumer demand. The effects are evident in the Nasdaq 100 Technology Sector index's decline of 36% since January. However, Apple's more modest fall of 15% in the same time frame proves its stability and resiliency under strenuous conditions. 

September has been a busy month for Apple with a slightly chaotic iPhone launch, but the company remains a safe buy for investors in it for the long haul. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why is everyone talking about Apple stock? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• 5 ASX ETFs that could supercharge your portfolio

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple Inc. (NASDAQ: AAPL) is one of the most innovative companies to date. Investing in Apple has felt like a no-brainer as its consistently successful products seem to make the company unstoppable. Even as the Nasdaq-100 Technology Sector index is down 35% year to date, thanks to inflation and slowing consumer spending, Apple's stock is down a more modest 17% in the same period. 

Immensely popular products such as the iPhone, MacBook, iPad, and Apple Watch have grown Apple's market cap to $2.4 trillion, making it the world's highest valued company. As a result, investors such as Warren Buffett have heartily vouched for the tech manufacturer, consigning 41% of Berkshire Hathaway's portfolio to Apple.

The iPhone titan has proven time and time again that its business is consistent and able to weather most storms. However, sales for its latest iPhone may not be as positive as some have reported. If true, the company's biggest segment could take a significant hit in its current quarter.

Apple's bread and butter

For the last decade, iPhone sales have made up at least 40% of Apple's revenue, with some quarters seeing the smartphones hit almost 70%. For instance, in the third and most recent quarter of 2022, Apple reported iPhone sales had made up 49% of its revenue. Meanwhile, the rest of its revenue went as follows: 8.7% to iPads, 8.8% to Macs, 9.7% to Wearables, Home and Accessories, and 23.6% to Services.  

Like clockwork, Apple announces its newest lineup of iPhones almost every September, with sales remaining consistent throughout the year. However, Apple has made a significant push into services over the last few years. The introduction of apps such as its streaming service Apple TV+, Music, Fitness+, and iCloud has pushed consumers further into the company's ecosystem of products and boosted revenue.

In the fourth quarter of 2021, services made up 15.7% of the company's revenue versus 23.6% in Apple's latest quarter. The rise of services is positive as it can aid in safeguarding the company in the event of poor iPhone sales, which look to be a real possibility in Apple's latest lineup. 

A potential dip 

On Sept. 7, Apple unveiled its latest series of iPhones with the iPhone 14, Plus, Pro, and Pro Max. The lineup saw a return to the "Plus" model for the lower-tiered phones, which hadn't surfaced since the iPhone 8 Plus in 2017. Since then, the largest option has only been available in the Pro models under the label "Pro Max."

While multiple media outlets have reported record-breaking sales for Apple's iPhone 14 Pro and Pro max, a recent report from Apple analyst Ming-Chu Kuo has shown poor sales for the iPhone 14 and 14 Plus. Kuo explained that the Pro models are currently showing delivery wait times of more than four weeks, which suggests good demand. However, the iPhone 14 and 14 Plus have been available in retail stores from their launch dates, which "reflects lackluster demand."

Weak pre-sales for the non-Pro models are concerning as they are usually the highest-selling iPhones in the yearly lineup. In 2019, the base model iPhone 11 was the top-selling version every week in the year's last quarter. Then, in the first half of 2020, the iPhone 11 sold 79% more units than the Pro Max version and 82% more than the smaller Pro model. As the lower-priced base models, the iPhone 14 and the bigger Plus version would normally be outselling the Pro versions, but that doesn't seem to be the case in 2022.

Kuo surmised that current sales indicate the iPhone 14 and Plus are selling worse than last year's iPhone 13 mini, which Apple cut production on in the first half of 2022 because of low demand. As a result, Apple could do the same to the iPhone 14 and Plus and slim down production as soon as November, according to Kuo.

In the latest iPhone 14 lineup, Apple worked to widen the gap between the base and the Pro models, offering far more new features and tweaks in design to the more expensive versions. However, the result meant incremental differences between last year's iPhone 13 and 2022's 14, and price hikes abroad have caused far worse iPhone sales than in previous years.

Is Apple's stock a buy?

According to Bloomberg, analysts expect Apple sales to rise 6% in its current quarter, down from 29% the previous year, which was primarily fueled by "pandemic-bound consumers" pumping up demand for technology. The company has bet on its Pro models this year, which have so far reached record numbers. However, the question is, will the higher-end versions sell enough to offset slower sales from the base model iPhone 14s?

Only time will tell, but regardless, Apple continues to be an excellent investment in the long term. While a potential dip is concerning, the company has proven itself as an innovative company worth investing in over time. The stock may be even more of a buy in the case of a dip as it is unlikely to be down for long, suggesting current investors would do well to hold until shares rise again. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you really buy Apple stock? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to generate monthly income using ASX ETFs
• Global investing is easy on the ASX with these ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• Stagflation: How to position an ASX stock portfolio
• 5 ASX ETFs that could supercharge your portfolio

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) reported better-than-expected second-quarter earnings on July 28, beating multiple forecasts set by Wall Street. The company's shares soared 24% from July 26 to Aug. 18 as bullish investors put their faith in it.

However, Amazon's stock still has room for growth, with two of its recent acquisitions looking especially promising.

Genius reason No. 1: 

Amazon went on an acquisition spree between July and August, with its first purchase being subscription-based healthcare company 1Life Healthcare (NASDAQ: ONEM), known as One Medical, for approximately $3.9 billion. The buyout will see Amazon venture into healthcare, an industry the company has been eyeing for some time. The acquisition might be a match made in heaven, considering One Medical's mission and Amazon's unique resources, which will undoubtedly boost the company. 

As described in Amazon's press release on the acquisition, "One Medical combines in-person care in inviting offices across the country with digital health and virtual care services." Telehealth services soared in popularity throughout the worst of the pandemic, with virtual healthcare company Teladoc Health's stock seeing a significant rise. However, the health stock's nosedive of 65.4% year to date could be Amazon's gain. 

If the purchase is successful, Amazon will take control of One Medical's almost 200 locations and roughly 770,000 patients nationwide -- a significantly larger reach than Teladoc. Additionally, Amazon has the chance to incorporate its own technologies, such as unmatched delivery infrastructure and an established subscription service with over 200 million members worldwide. Breaking into the healthcare industry might not come easy, but it seems that Amazon is more than capable of succeeding in its health endeavors. 

Genius reason No. 2: 

On Aug. 5, Amazon announced plans to acquire consumer robotics company iRobot (NASDAQ: IRBT), the result of a deal valued at approximately $1.7 billion. Compared to One Medical, the purchase is arguably less risky and fits nicely into the company's current product lineup. 

Amazon has gradually pushed into the smart-home industry over the years with its line of Alexa-enabled products, such as smart speakers, alarm clocks, thermostats, and security cameras. In addition to iRobot's incredibly popular robot vacuums, Amazon's purchase of the company also brings on its team of consumer robotic experts who have the potential to boost the company's range of smart products as a whole and strengthen its hold on the growing industry.

Moreover, Amazon has turned Alexa into a multibillion-dollar business through its smart devices and app store, called Alexa Skills. Developers have flocked to create various Alexa Skills, from which Amazon keeps 30% of the profits. In 2019, analysts estimated Amazon generates $2 billion a year from Alexa skills, with the company keeping $600 million. The acquisition of iRobot only increases the variety of smart products and Alexa Skills the company could offer, which could pay off in a big way for Amazon. 

An opportunity for investors

Although Amazon's stock has soared since July, it still remains down at least 24% since the height it reached in November 2021. In addition to its recent acquisitions, the company has several promising opportunities on the horizon that should excite investors. Amazon's advertising endeavors have proven especially fruitful for the company as the segment has generated $33.9 billion of revenue over the last four quarters, and the company is getting ready to dive deeper into the industry.  

Amazon has some exciting developments coming to its streaming service Prime Video in September, such as exclusively broadcasting NFL's Thursday Night Football and the premiere of its highly anticipated Lord of the Rings series, The Rings of Power. Both content additions have the potential to pull in millions of viewers, while Thursday Night Football can also further the company's already successful advertising endeavors. 

Amazon has a bright future ahead, and investors should be bullish about its stock as its promising outlook makes it an excellent long-term buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 genius reasons to buy Amazon stock today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• The huge retail trend many are missing
• How to generate monthly income using ASX ETFs
• Are these the best ASX ETFs to buy with $1,000 in May?
• How to invest in the AI Build-Out: Expert
• Why ASX investors dumped IVV ETF last month

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Teladoc Health, and iRobot. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and iRobot. The Motley Fool Australia has recommended Amazon and iRobot. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Netflix (NASDAQ: NFLX) released the fourth and penultimate season of Stranger Things between May and July, which amassed millions of views. The creators of Stranger Things have not revealed the launch date for season five, but have confirmed it will be the final season. Here's why the show's end might actually be positive for Netflix's growth. 

Utilizing talent

Stranger Things launched on Netflix in July 2016, receiving universal acclaim and making overnight stars of its almost entirely unknown cast. Netflix did not reveal subscriber viewership back then, but analysts have surmised the show reached an average of 14.07 million adults in the U.S. in its first 35 days -- making it the third-most-watched season of a Netflix original series at the time.

The second season soared further, earning a nod from Guinness World Records for the most in-demand digital original series of 2017. The latest season of Stranger Things has only added to the show's success, becoming the first English-language Netflix series to cross one billion viewing hours within 28 days. The show has become a valuable tool for Netflix to retain subscribers.

Moreover, the cast and creators of Stranger Things are advantages Netflix can utilize in its fight to win the streaming wars. The show's creators, Matt and Ross Duffer, often called the Duffer Brothers, announced the launch of their production company, Upside Down Pictures, in early July. The duo has unveiled various upcoming Netflix projects, including a Stranger Things spinoff, a Stephen King adaptation, and a live-action Death Note series. The end of Stranger Things would increase the number of projects the Duffers can devote time to, adding more content to Netflix's library to attract subscribers. 

The show's end would also free up its cast for other projects. Netflix has already had Stranger Things lead Millie Bobby Brown star in the 2021 film Enola Holmes, which became the seventh-most watched Netflix original movie in history, with 76 million views, and prompted a sequel yet to be released. Brown will also star in an upcoming Russo Brothers (Avengers: Infinity War, Endgame) film, The Electric State.

Once Stranger Things ends, its other immensely popular stars will be increasingly available to take part in additional Netflix originals -- potentially pulling in additional fans and subscribers. 

The Stranger Things "cinematic universe"

The tremendous success of Stranger Things could lend itself to the creation of a cinematic universe. It also raises the potential for Netflix to have something that could put its library of content in a similar league to its biggest competitors: Walt Disney's (NYSE: DIS) Disney+ and Warner Bros. Discovery's (NASDAQ: WBD) HBO Max. Both have utilized well-established franchises from their parent companies' content libraries to inspire streaming originals, encouraging large fanbases to flock to their platform. 

Disney has gained millions of views on Disney+ with a variety of original series based on various Marvel properties and the Star Wars universe. In January 2021, the Disney+ series WandaVision featured popular Marvel characters and was 81.3 times more watched than the average streaming show across all platforms, according to a TVision analysis. More recently, in May, the Star Wars series Obi-Wan Kenobi premiered on Disney+ and became the most-watched series on the platform ever with the premiere pulling in 2.14 million viewers.

If Netflix can use the popularity of Stranger Things to kick off a variety of other series and films with some connection to the original show, the show's many fans could have further reason to retain their Netflix subscriptions. Disney has used its Marvel and Star Wars series to create a consecutive schedule of releases that leaves subscribers less willing to drop Disney+. Netflix could similarly encourage subscriber retention by releasing content based on Stranger Things and other projects starring its actors to keep its members.

While Stranger Things has a substantial fanbase, the Duffer Brothers also have the potential to entertain Netflix members with different interests. The filmmakers' upcoming projects prove the potential for Netflix to grab viewers from alternative entertainment domains with a long history of attracting fans. Stephen King adaptations and manga-inspired content have attracted large audiences in the past and can certainly do so for Netflix.

The future of Stranger Things

For Netflix to retain Stranger Things as an asset, the last season must satisfy its loyal fans. Keen investors will want to keep an eye on the critic and audience scores of season five's episodes, particularly its finale. High scores will mean Netflix continues to have the potential to grow a cinematic universe and mean its creators' names still hold weight when attached to other projects. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The end of 'Stranger Things' might actually be a boost for Netflix appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 ASX ETFs with market-beating potential over the next 10 years
• Are these the best ASX ETFs to buy with $1,000 in May?

Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.