Latest news with #growth
Telegraph
an hour ago
- Business
- Telegraph
Labour's industrial strategy is a corporatist, state-led agenda
Within the strategy, the talk is of competitiveness, the answer is intervention. The document acknowledges that firms are concerned about high electricity prices and lengthy waits for grid connections, and the answer is that the current policy is right but can be tweaked. The burden of regulation and the speed of planning are noted as barriers, so let's see if the government's actions back their words in trying to address these. I doubt it on regulation, but I am more hopeful of planning reform, which would indeed make a profound, welcome difference to growth prospects. At their core, industrial policies reflect scepticism about markets and an aversion to supply-side reform. Instead of removing hurdles to growth as supply-side policies would, industrial policies often reflect the lethal combination of politicians driven by a belief that the state drives growth, academics who think they know best and lobbyists. This new strategy is unlikely to improve underlying business conditions. Industrial policy is sometimes presented as a complement to supply-side reform, but more often, it becomes a substitute. One criticism has been that government spending crowds out the private sector, but this strategy hopes that funds directed to the IS-8 will crowd it in. Let's see. There is also something amiss about these eight sectors in that they reinforce the imbalanced nature of the economy. The UK is a low wage economy because half the population work in low paid jobs. Outside London and the South East the numbers employed in these eight sectors is very limited. The UK's approach to such strategies often leans towards tax credits. That remains a focus. This new strategy explicitly mentions the role tax plays in incentivising investment, innovation and growth. It then argues our current approach is competitive. Really? In the 2024 International Tax Competitiveness Index, the UK ranked 30th out of 38 OECD countries and looks more likely to fall, than rise. The last 12 months have been turbulent for the world economy and difficult for the UK. But instead of tax, spend and borrow, what we need is for the UK to save, invest and compete. Gerard Lyons is a research fellow at the Centre for Policy Studies
Yahoo
2 hours ago
- Business
- Yahoo
Why Are Tesla, Apple, and Alphabet Underperforming the "Magnificent Seven" and the S&P 500?
Investors are rewarding big tech companies that are monetizing AI. Tesla, Apple, and Alphabet could be coiled springs for long-term growth. Tesla needs its big bets to pay off. These 10 stocks could mint the next wave of millionaires › The S&P 500 (SNPINDEX: ^GSPC) has more than recovered its losses from earlier this year and is now up nearly 4.4% year to date. Many mega-cap tech-focused companies have posted sizable gains -- including "Magnificent Seven" members Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). But investors may be souring on Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) due, in part, to their apparent lack of artificial intelligence (AI) achievements. Here's what's going wrong for these growth stocks, and whether they are buys now. A great divide has appeared through the Magnificent Seven between companies whose investment theses have been enhanced by AI and those whose theses have not. Perhaps the simplest reason why Tesla, Apple, and Alphabet are underperforming their Magnificent Seven peers is that they are on the unfavorable side of this great divide. Just a couple of months ago, Tesla was down around 45% in 2025. It has recovered a substantial amount of those losses despite plummeting vehicle deliveries. Tesla stock popped after its robotaxi event showcased progress on self-driving cars. Some investors have been waiting nearly a decade for this update, so it's understandable that the stock reacted favorably to the event. Given the weak results in Tesla's core business, Tesla's investment thesis increasingly relies on longer-term bets on self-driving cars and robotics. Tesla could benefit from AI one day, but it isn't monetizing it to a significant extent right now. Apple is in a similar boat. Its core business is selling tech-focused consumer products and services. Apple hasn't made meaningful AI improvements to its product suite, but it has released a slew of new tools and a software interface update that tout AI capabilities. However, it remains to be seen if Apple will be a net beneficiary of AI. AI presents arguably the best opportunity in decades for competition to tap into Apple's dominant smartphone market share. Apple has grown increasingly dependent on sales outside the U.S., but has been losing market share in key markets like China due to intense competition from companies like Xiaomi, Huawei, and Vivo. Like Tesla, Apple could benefit from AI in the near future. But so far, AI simply hasn't been a catalyst for the company in the same way it has for other mega-cap tech-focused companies. Alphabet is much more of a mixed bag. AI growth is a boon for cloud computing, and Google Cloud is the No. 3 player in the space behind Amazon (NASDAQ: AMZN) Web Services and Microsoft Azure. Alphabet-owned YouTube can also benefit from AI, as it helps creators produce content and streamline suggested videos and advertisements better targeted to individual users. Google's self-driving car project, Waymo, could also benefit from AI. Alphabet-owned generative AI model Gemini is a multimodal tool -- meaning it can work with text, audio, visuals, video, and even code. Gemini got off to a rocky start, but now it's a major player in the chatbot space, along with OpenAI's ChatGPT, Anthropic's Claude, and other generative AI companies. However, the elephant in the room is uncertainty about how AI could affect Alphabet's cash cow, Google Search. Integrating Gemini with Google Search, or simply changing Google Search from a web page ranking tool to an interactive information powerhouse, could be a simple and effective way for Alphabet to hold its own despite mounting competition. But there's no denying that Google Search is facing its biggest challenge in decades from competitors' AI-powered search offerings. That uncertainty alone, despite all the other ways Alphabet benefits from AI, has led some investors to avoid and/or dump the stock. Buying Tesla, Apple, or Alphabet is a belief that these companies will be able to adapt in the age of AI -- even if they don't benefit drastically from it. Tesla is arguably the highest-risk name given its lofty valuation (it has the highest price-to-earnings (P/E) ratio and highest forward P/E ratio of the Magnificent Seven). But Apple and Alphabet both have more reasonable valuations (31.2 P/E for Apple and just 18.6 for Alphabet). These companies also generate a ton of free cash flow and earnings that they can use to reinvest in the business and return capital to shareholders through buybacks and dividends. Additionally, Apple and Alphabet have substantially more cash, cash equivalents, and marketable securities on their balance sheets than long-term debt. Apple's big product launch this September could be just what the company needs to prove that it has the hardware and software to attract Wall Street's attention. Alphabet investors should continue to monitor the performance of the company's services segment, which is led by Google Search. So far, Google Search ad revenue has been incredibly strong despite increased adoption of ChatGPT and other competition. Until that trend shifts, it's hard to get too pessimistic about Alphabet, especially with potential upside from Gemini and Waymo. The beauty about being an individual investor is that you don't have to agree with Wall Street sentiment and can take advantage of when great companies go on sale. Short-term-minded investors may pass on Tesla, Apple, and Alphabet simply because they aren't proven AI plays, but all three stocks could still be worth buying and holding for long-term investors. At this juncture, Apple and Alphabet present far more compelling risk and potential reward profiles than Tesla -- especially Alphabet, given its dirt-cheap valuation. So Alphabet would be my top pick of these three underperformers, with Apple as a close second. However, the best buy ultimately depends on your personal risk tolerance and the end markets you believe will thrive over the long term. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $402,034!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,158!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $704,676!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Xiaomi and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Are Tesla, Apple, and Alphabet Underperforming the "Magnificent Seven" and the S&P 500? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
3 Reasons Why Alphabet Stock Is a Better Buy Than Apple
Alphabet's growth rates far exceed Apple's. Apple has failed to launch any significant AI products. Alphabet's stock looks like a bargain. 10 stocks we like better than Alphabet › Apple (NASDAQ: AAPL) has been one of the most popular stocks in the market for a decade, and many investors have called it a foundational stock that every investor must own. I'm not a huge fan of Apple's stock, and I believe there are far greater choices than Apple to add to a portfolio. The biggest company that I think investors should add to their portfolio over Apple is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Google's parent company. I can think of three reasons why Alphabet is a far better purchase, but there are likely many more that set Alphabet apart. When assessing stocks, the first stat that I usually look at is the growth rate. While this isn't everything, it allows me to understand what kind of business I'm looking at. When I assess Alphabet, I see a company delivering consistent low double-digit revenue growth, which tells me it's a steady grower, but still delivering market-beating growth. For Apple, I see a company that's barely growing above the rate of inflation and is coming off multiple quarters of revenue shrinking. From this standpoint, Alphabet is a far more attractive investment, but revenue growth isn't everything for these two. Both companies are mature, so earnings-per-share (EPS) growth should also be considered. From this standpoint, Alphabet is light years ahead of Apple. Apple can't grow its EPS above 10% per quarter, which means it will likely grow slower than the broader market. As a result, Alphabet looks like a far better company when growth is considered. One of the biggest areas tech companies are investing heavily in is artificial intelligence (AI). However, Apple is a notable exception. Its Apple Intelligence (Apple's take on AI) products are well behind its primary competitors, and the company has failed to launch any game-changing features. Furthermore, Apple's sales rely heavily on iPhones, which haven't seen much innovation over the past few years. On the flip side, Alphabet is still innovating. It's at the forefront of AI technology, heavily investing to ensure its tools are among the best available for users. Alphabet is also innovating in other industries, such as with Waymo, its self-driving car start-up. No matter how you look at it, Alphabet is still evolving and growing as a company, while Apple still looks like the same business it was three years ago. This shows up in the growth rates, and it is another reason why I favor Alphabet stock over Apple. Although I've painted Alphabet as much more attractive than Apple, the market does not see it that way. Apple's stock trades at a far higher premium than Alphabet's, and Alphabet's stock is actually cheaper than the S&P 500 (SNPINDEX: ^GSPC), which trades for 22.8 times forward earnings. This makes Alphabet's stock not only attractive compared to Apple, but also more attractive than the broader market, as it's growing at a far greater speed than the market historically has. Alphabet is a fantastic stock to buy, as it is still innovating, which shows up in its earnings and revenue growth rates. However, the market doesn't value the stock highly, which is an excellent opportunity for investors to buy shares while they are beaten down. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy. 3 Reasons Why Alphabet Stock Is a Better Buy Than Apple was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 hours ago
- Business
- Yahoo
Cantor Fitzgerald Raised The PT on Lam Research (LRCX), Maintains a Buy Rating
Lam Research Corporation (NASDAQ:LRCX) is one of the . On June 24, Cantor Fitzgerald raised the firm's price target on Lam Research Corporation (NASDAQ:LRCX) from $90 to $115, while keeping an Overweight rating on the stock. The increased price target is based on the firm's research which suggests a modestly improved wafer fab equipment market in 2025. The firm noted that Cantor Fitzgerald's industry checks suggest a modest improvement in the WFE sector for calendar year 2025, primarily driven by demand from domestic China. This suggests that 2026 will be another year of growth for the sector, thereby presenting growth opportunities for Lam Research Corporation (NASDAQ:LRCX) as well. Cantor Fitzgerald believes the sector is largely immune to tariff-related issues and expects the consensus estimates for the semiconductor equipment group to move significantly higher. A technician operating an automated semiconductor processing machine with laser accuracy. In Q3 2024, the company posted revenue of $4.72 billion, reflecting a 24.43% year-over-year increase. The revenue topped estimates by $79.9 million with EPS of $1.40 exceeding expectations by $0.04. China remained a major contributor to Lam Research Corporation (NASDAQ:LRCX)'s revenue, with China's revenue forming 31% of its total revenue. Lam Research Corporation (NASDAQ:LRCX) is a leading global supplier of wafer fabrication equipment and services used in the semiconductor industry to manufacture integrated circuits. While we acknowledge the potential of LRCX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
4 hours ago
- Business
- Yahoo
Goldman Sachs Maintains a Buy Rating on Taiwan Semiconductor Manufacturing (NYSE:TSM) With a PT of $242
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. In a report released on June 25, Bruce Lu from Goldman Sachs maintained a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $242.00. A close-up of a complex network of integrated circuits used in logic semiconductors. The company reported its net revenue for May 2025 on June 10, which reached NT$320.516 billion. While the figure represents an 8.3% drop from April 2025, it also shows a significant 39.6% growth compared to May 2024. Taiwan Semiconductor Manufacturing Company Limited's (NYSE:TSM) total revenue for fiscal year 2025 as of May is around NT$1,509.34 billion, which translates to a 42.6% growth versus the same period last year. The revenue figures thus suggest strong year-over-year growth for the company, reflecting its solid market position in spite of short-term challenges and fluctuations. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the largest contract semiconductor manufacturer in the world. Some of its prominent customers include semiconductor companies that outsource all or a part of their chip production, including Advanced Micro Devices, Nvidia, Broadcom, and more. While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
