We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Invesco QQQ, Invesco NASDAQ 100 ETF, First Trust NASDAQ-100 Equal Weighted Index Fund, Invesco NASDAQ Next Gen 100 ETF and Direxion NASDAQ-100 Equal Weighted Index Shares
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 13, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Invesco QQQ (QQQ - Free Report) , Invesco NASDAQ 100 ETF (QQQM - Free Report) , First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Nasdaq Up Big YTD: More Upside Ahead for ETFs?
In the wake of a remarkable year for Wall Street in 2023 thanks mainly to the surge seen in tech-heavy Nasdaq. Now, investors are eyeing the potential for continued growth, particularly in the technology sector.
In fact, the Nasdaq overcame the downturn of the bear market to climb by 43% last year. And historical data offers a great picture for 2024 as well. Looking back to 1972, the year after a market rebound, the Nasdaq has historically seen an average increase of 19%, indicating that the current market upswing could continue.
The performance varied significantly, from a modest rise of 7% in 1986 to a substantial surge of 38% in 2013. With the economy showing signs of improvement, the conditions seem favorable for continued market growth, per Motley Fool, as quoted on Yahoo Finance.
Amidst this backdrop, two tech behemoths, Microsoft and Amazon, stand out for their pioneering efforts in leveraging artificial intelligence (AI) to drive innovation and growth.
Microsoft's AI Revolution
Under the leadership of CEO Satya Nadella, Microsoft has emerged as a leader in the AI landscape. Nadella's vision has propelled Microsoft's AI initiatives, with Copilot serving as a prime example of the company's success.
Copilot, integrated deeply into Microsoft's core products, has shown substantial productivity gains, with studies indicating up to a 70% improvement in specific work tasks. Microsoft's strategic move to provide out-of-the-box integrations with third-party platforms further expands Copilot's reach, enhancing its revenue potential.
Despite the buzz around AI in the past year, Microsoft is just scratching the surface of what's possible. The advancements in AI are likely to spark growth in Microsoft's cloud and software services.
Azure's Ascendancy
Microsoft's cloud platform, Azure, has witnessed remarkable growth, particularly in AI services. Azure's Cloud revenue surged 30% year over year, outpacing competitors like Amazon Web Services (AWS) and Google Cloud. The demand for AI services has been a significant driver of Azure's growth, underscoring Microsoft's prowess in capturing market share in the AI-driven cloud computing landscape.
Amazon's AI Odyssey
While historically known for its e-commerce dominance, Amazon has been quietly making strides in the AI arena. The company's investment in Anthropic, coupled with strategic partnerships with AWS, marks a pivotal shift towards AI-driven growth.
Anthropic's utilization of AWS for AI model training and Amazon's development of proprietary chips signal Amazon's commitment to AI innovation and its potential to revitalize AWS revenue growth.
Beyond AI: A Closer Look at Microsoft's Growth Opportunities
Even though Artificial Intelligence (AI) grabs most of the headlines, Microsoft has more tricks up its sleeve. The company faced a rough patch when the demand for personal computers (PCs) went down, affecting a big chunk of its income. However, things are looking up now. The PC market is getting back on its feet, with Microsoft's related sales jumping 19% from last year. This is the biggest growth spurt in almost three years! As the PC market continues to recover, it's expected to keep boosting Microsoft's financial health.
A Fair Price for Future Growth
When we talk about how much it costs to buy a piece of Microsoft (its valuation), it might seem a bit pricey at 37 times its earnings and 13 times its sales. However, given the exciting growth opportunities ahead and Microsoft's proven ability to make the most of them, paying a little extra makes sense.
Fed Rate Cut Likely in Late 2024
Despite the market's speculation regarding potential interest rate cuts, Fed officials reiterated their cautious approach.Boston Fed President Susan Collins emphasized that rate cuts could be on the horizon "later this year." However, the central bank would require additional evidence of inflation cooling before taking such actions. This stance underscores that the Fed is also weighing the options of rate cuts – a monetary policy stance investors are craving for.
ETFs in Focus
Against this backdrop, below we highlight a few Nasdaq ETFs like Invesco QQQ, Invesco NASDAQ 100 ETF, First Trust NASDAQ-100 Equal Weighted Index Fund, Invesco NASDAQ Next Gen 100 ETF and Direxion NASDAQ-100 Equal Weighted Index Shares.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Invesco QQQ, Invesco NASDAQ 100 ETF, First Trust NASDAQ-100 Equal Weighted Index Fund, Invesco NASDAQ Next Gen 100 ETF and Direxion NASDAQ-100 Equal Weighted Index Shares
For Immediate Release
Chicago, IL – February 13, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Invesco QQQ (QQQ - Free Report) , Invesco NASDAQ 100 ETF (QQQM - Free Report) , First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW - Free Report) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Nasdaq Up Big YTD: More Upside Ahead for ETFs?
In the wake of a remarkable year for Wall Street in 2023 thanks mainly to the surge seen in tech-heavy Nasdaq. Now, investors are eyeing the potential for continued growth, particularly in the technology sector.
In fact, the Nasdaq overcame the downturn of the bear market to climb by 43% last year. And historical data offers a great picture for 2024 as well. Looking back to 1972, the year after a market rebound, the Nasdaq has historically seen an average increase of 19%, indicating that the current market upswing could continue.
The performance varied significantly, from a modest rise of 7% in 1986 to a substantial surge of 38% in 2013. With the economy showing signs of improvement, the conditions seem favorable for continued market growth, per Motley Fool, as quoted on Yahoo Finance.
Amidst this backdrop, two tech behemoths, Microsoft and Amazon, stand out for their pioneering efforts in leveraging artificial intelligence (AI) to drive innovation and growth.
Microsoft's AI Revolution
Under the leadership of CEO Satya Nadella, Microsoft has emerged as a leader in the AI landscape. Nadella's vision has propelled Microsoft's AI initiatives, with Copilot serving as a prime example of the company's success.
Copilot, integrated deeply into Microsoft's core products, has shown substantial productivity gains, with studies indicating up to a 70% improvement in specific work tasks. Microsoft's strategic move to provide out-of-the-box integrations with third-party platforms further expands Copilot's reach, enhancing its revenue potential.
Despite the buzz around AI in the past year, Microsoft is just scratching the surface of what's possible. The advancements in AI are likely to spark growth in Microsoft's cloud and software services.
Azure's Ascendancy
Microsoft's cloud platform, Azure, has witnessed remarkable growth, particularly in AI services. Azure's Cloud revenue surged 30% year over year, outpacing competitors like Amazon Web Services (AWS) and Google Cloud. The demand for AI services has been a significant driver of Azure's growth, underscoring Microsoft's prowess in capturing market share in the AI-driven cloud computing landscape.
Amazon's AI Odyssey
While historically known for its e-commerce dominance, Amazon has been quietly making strides in the AI arena. The company's investment in Anthropic, coupled with strategic partnerships with AWS, marks a pivotal shift towards AI-driven growth.
Anthropic's utilization of AWS for AI model training and Amazon's development of proprietary chips signal Amazon's commitment to AI innovation and its potential to revitalize AWS revenue growth.
Beyond AI: A Closer Look at Microsoft's Growth Opportunities
Even though Artificial Intelligence (AI) grabs most of the headlines, Microsoft has more tricks up its sleeve. The company faced a rough patch when the demand for personal computers (PCs) went down, affecting a big chunk of its income. However, things are looking up now. The PC market is getting back on its feet, with Microsoft's related sales jumping 19% from last year. This is the biggest growth spurt in almost three years! As the PC market continues to recover, it's expected to keep boosting Microsoft's financial health.
A Fair Price for Future Growth
When we talk about how much it costs to buy a piece of Microsoft (its valuation), it might seem a bit pricey at 37 times its earnings and 13 times its sales. However, given the exciting growth opportunities ahead and Microsoft's proven ability to make the most of them, paying a little extra makes sense.
Fed Rate Cut Likely in Late 2024
Despite the market's speculation regarding potential interest rate cuts, Fed officials reiterated their cautious approach.Boston Fed President Susan Collins emphasized that rate cuts could be on the horizon "later this year." However, the central bank would require additional evidence of inflation cooling before taking such actions. This stance underscores that the Fed is also weighing the options of rate cuts – a monetary policy stance investors are craving for.
ETFs in Focus
Against this backdrop, below we highlight a few Nasdaq ETFs like Invesco QQQ, Invesco NASDAQ 100 ETF, First Trust NASDAQ-100 Equal Weighted Index Fund, Invesco NASDAQ Next Gen 100 ETF and Direxion NASDAQ-100 Equal Weighted Index Shares.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.