Cetera Financial Group, a platform with $475 billion in assets under administration and $190 billion in assets under management, has approved four U.S. spot bitcoin exchange-traded funds (ETFs) for use in brokerage accounts on its platform. “We are prudently embracing bitcoin ETFs and we prioritized developing this important guidance to help our financial professionals implement […]
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El Salvador has been buying one bitcoin a day since 2022, according to President Nayib Bukele, who confirmed that his country’s “1 bitcoin a day program” will continue until the cryptocurrency “becomes unaffordable with fiat currencies.” The bitcoins acquired from El Salvador’s daily purchases are also deposited into the same wallet address used for the […]
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Over the years, the Asia Pacific region (APAC) has established itself as an impressive environment for the rapidly growing technology industry. From the bustling tech hub of Singapore to the financial might of Hong Kong, the flourishing Web3 community in Vietnam, and the impressive technological creativity of Japan, APAC has consistently been at the forefront of innovation.
With governments actively embracing blockchain, a highly skilled digital native population, and leading industry projects setting their sights on the region, APAC is set to lead the charge in shaping the future of Web3.
One of the critical drivers of this journey is the progressive regulatory stance in key jurisdictions. Last year, Singapore became one of the first countries to implement stablecoin regulation. This solidifies the city-state’s commitment to fostering a secure crypto ecosystem for investors and provides a blueprint for others to follow. Singapore is setting clear standards and leading by example to show the world how regulatory frameworks can bring more trust and security to the ever-evolving crypto landscape.
Hong Kong is also solidifying its position as a crypto hub. Introducing a licensing regime for Virtual Asset Service Providers (VASPs) and a regulatory framework for retail trading is a testament to the city’s dedication to embracing the future of financial technology. Furthermore, Hong Kong has embraced blockchain technology as a major component of its financial model.
Spearheaded in collaboration with the United Nations and the Bank of International Settlements, the Hong Kong Monetary Authority launched a groundbreaking initiative known as ‘Project Genesis 2.0‘ which yielded two innovative prototypes for green bonds in 2023, successfully executing the sale of the world’s inaugural tokenized green bond, valued at over $100 million USD.
Japan has signaled its commitment to improving the business and regulatory environment for Web3 companies. In a speech at last year’s WebX conference in Tokyo, Japan’s Prime Minister Fumio Kishida emphasized that the government intends to accommodate Web3 technologies, particularly regarding regulations around digital assets and content sharing. ]
The Prime Minister emphatically stated that “Web3 is part of the new form of capitalism,” leaving no doubts about the nation’s fierce commitment to fostering innovation.
Lastly, the approval of BTC spot ETFs in the US, stewarded by premier financial institutions such as BlackRock and Fidelity, represents a very positive milestone for the industry within American borders and could signal increased activity in APAC. Before this approval, UBS and HSBC made strides to offer customers access to new investment vehicles. With the creation of new regulated institutional products, the possibilities for increased market participation have grown exponentially.
Perhaps the region’s most valuable positive element is the highly skilled and motivated digital natives. For so long, institutions and society have depended on specialized technologists and developers to lead the way in the field. But now, younger generations born into a digital world are transforming how new technologies are understood, regulated, implemented, and utilized.
This is most clear in the APAC region where progressive regulations, thanks to a novel working relationship between technologists, business leaders, and government officials, have resulted in a projected US $126.9 billion of spending from digital native businesses by 2026.
The economic impacts of this exponential growth will be revolutionary, not only in the region but across the globe. On top of the impressive economic impacts, we can only begin to imagine how the new technologies and services created in this environment will positively impact industries from finance and banking to content sharing and entertainment.
It’s no secret that adopting new technologies is an intricate process that requires extensive collaboration between technologists, businesses, and policymakers. This has historically been an arduous process for the tech industry, particularly due to the complexity of the subject matter, among other factors. Consequently, the regulatory framework brought forth by policymakers is often not reflective of industry, market, or consumer needs.
Around the world, governments have struggled to balance their objectives and the tech industry’s needs. But, in the east, an impressive movement spearheaded by a digitally oriented population is underway – one that is successfully fostering the necessary collaboration between industry leaders and public officials while ensuring the industry continues to see the same success.
For these reasons, APAC is on the brink of claiming its position as the world’s important region for Web3 innovation. With a convergence of technological prowess, innovative regulations, and a rapidly growing digital native economy, APAC nations have seamlessly embraced the innovative principles that define Web3, and the region is poised to serve not only as a catalyst but as a leader, in the global advancement of Web3 technologies.
After the U.S. investment advisor Vanguard chose not to offer spot bitcoin exchange-traded funds (ETFs), its CEO Tim Buckley, in a recent discussion, described bitcoin as a speculative asset, unfit for inclusion in long-term investment portfolios. Vanguard’s CEO Confirms: No Change in Bitcoin ETF Policy, Cites Speculation Concerns Reaffirming Vanguard’s perspective on bitcoin during a […]
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A failed business left a family with debts to the IRS, the Small Business Administration and others.
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Wall Street is again proving that investors seem to make all their money during the winter months.
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“A profound unfairness”: The merciless stigma of being an older long-term unemployed person.
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March 8 was a wild day in the stock market. Shares of Nvidia (NVDA -0.12%) surged to an all-time high of $974 only to fall over 10% from that high to end the day at $875.28. At the peak, Nvidia was less than 9% away from surpassing Apple (AAPL -0.22%) in market cap. By close, it was a little over 20% away.
Given Nvidia’s big swings, it seems like the stock could very well surpass Apple to become the second most valuable “Magnificent Seven” stock behind Microsoft. Here’s why Nvidia could keep outperforming Apple in the short term, but why Apple is the better long-term buy.
Image source: Getty Images.
Nvidia is not an unprofitable growth stock that is rallying based on optimism and greed alone (although those are contributing factors). The business is doing phenomenally well, achieving a level of sales and earnings growth paired with margin expansion.
NVDA Revenue (TTM) data by YCharts
The only concern with Nvidia is its valuation. Its price-to-earnings (P/E) ratio based on its trailing 12-month (TTM) earnings is 73.6. But consensus analyst estimates expect Nvidia’s earnings per share (EPS) to more than double from the $11.90 it earned in fiscal 2024 to $24.50 in fiscal 2025. That gives Nvidia a forward P/E of 35.7 — which is far more reasonable.
The easiest way for Nvidia to pass Apple in market cap is for investors to keep bidding up the stock. But the more realistic way is if Nvidia’s earnings live up to expectations.
Nvidia will report its full-year fiscal 2025 results some time in late February or early March next year. If it reports $24.50 in earnings, the stock would likely be far higher, especially if there is optimism for even more growth ahead. A business that is more than doubling earnings with high margins and leading the artificial intelligence (AI) revolution deserves a premium valuation, probably something like double the P/E of the S&P 500.
Nvidia deserves the highest P/E of all the Magnificent Seven companies, but the company is nearing a point where it is running up too far, too fast.
Nvidia benefited from earnings growth and a valuation expansion. It’s hard to assume the valuation will continue to expand, but the stock could still go up if the first half of fiscal 2025 goes as analysts expect. Each new quarter of high earnings will increase the trailing-12-month number and lower the P/E, leaving room for the stock to rise to fill the gap. There is nothing better in the stock market than earnings growth, and right now Nvidia has it, and Apple doesn’t.
So why is Apple the better buy if Nvidia has such an easy path forward? Simply put, I think the setup for Apple makes it a much better investment. Nvidia may be the better trade, but a more surefire way of building wealth is by compounding over the long term.
Market sentiment is negative toward Apple. So negative, in fact, that Apple trades at a discount to the S&P 500. The only reason that should ever happen is if something serious was going wrong with Apple. The company has its challenges, but none of them warrant an underperformance like we have been seeing for the last six months or so.
The abridged version of why Apple stock is under pressure is because it hasn’t captured the spotlight with some major AI monetization announcement (Nvidia, Microsoft, and Meta Platforms have). iPhone sales are down in China, and growth is sluggish in general. But Apple has endured these periods before and overcome competition.
Piper Sandler‘s fall 2023 survey found that 87% of Gen Z had an iPhone, 88% expected their next phone to be an iPhone, and 34% owned an Apple Watch. The iPhone is essentially a consumer staple in the U.S. and is growing well across international markets outside of China.
Investors should focus less on the competition and more on Apple’s ability to further monetize its existing devices through services and AI. The key for Apple has always been to increase the depth (services) and breadth (more products like phones, computers, tablets, wearables, ear buds, and more) of its ecosystem. Having lifetime customers consistently increase their spending relies on product improvements.
The pressure is on Apple to make a splash this summer to drive iPhone demand and upgrades. If Apple delivers the improvements that drive growth, the stock could soar. But even if it doesn’t, it generates plenty of extra cash to make an acquisition and grow that way, or return cash to shareholders while maintaining a rock-solid balance sheet.
Apple’s brand, market position, and financial health give it the time and the wiggle room needed to make mistakes. The company is known for not leading investors on and only makes announcements when it feels the product or service is ready.
Nvidia has to hit sky-high earnings forecasts to keep going up. The semiconductor industry is also highly cyclical, and a downturn in customer spending could stall its growth trajectory. Nvidia may keep growing at a breakneck pace in the near term, but eventually, it will slow down. When that time comes, investors may be less willing to give Nvidia a multiple that is triple the market average.
Meanwhile, Apple is already a good value and has a clear path toward regaining Wall Street’s favor.
I don’t have a crystal ball, but if I had to guess, I would say Nvidia will briefly become more valuable than Apple. But three to five years from now, I think Apple will be worth more than Nvidia while also being a safer and less volatile investment.
Nvidia stands out as a high-risk/high-potential-reward play, while Apple is more like a low-risk/medium-potential-reward investment. Investors who are confident about sustained high demand for Nvidia’s products will want to watch each quarterly earnings report, understanding the importance earnings play in the story. The big gains have already been made in Nvidia, and investors should expect more reasonable returns going forward.
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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool 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.
Over the past month, the valuation of bitcoin has seen a notable increase, leading to significantly enhanced profits for today’s most sophisticated application-specific integrated circuit (ASIC) bitcoin mining devices. As of March 16, 2024, the top ten ASIC miners focused on the SHA256 consensus algorithm are generating daily earnings ranging from $10 to $21, assuming […]
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Rethink that retirement party. More and more, seasoned workers are defying expectations and staying put in the workforce for a compelling reason—they simply can’t afford to retire.
That’s the finding from a new study by Korn Ferry that found that the number of clients with investment powerhouse Fidelity who can afford to cover all their expenses in retirement dropped from 83% last year to 78% this year.
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The Big Problem
The Korn Ferry study isn’t the only data showing a problem. Payroll services company Paychex found that about one out of every six current retirees (about 17%) were considering going back to work, with more than half of them reporting that they needed more money.
The increase in older workers staying on the job is causing concerns in the executive suite because corporate planners have been expecting their expensive older workers to retire which would open senior-level jobs for younger workers looking to advance their careers.
“You’re in a little bit of a box if the performance of the older workers is good,” says Ron Porter, leader in Korn Ferry’s global human resources center of expertise.
That’s a big switch from 2020 when corporate types were desperate to keep older workers on the job in the early phases of the COVID-19 epidemic. The resulting labor shortages that continued prompted many large companies to launch “returnship” programs aimed at recruiting and training people who’d been out of the workforce for any length of time, including parents and retirees. In 2023, however, many firms are looking to cut costs or restructure, and executives want to see higher-paid 50- and 60-somethings move into retirement.
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Impact on Younger Workers
In fact, many corporations have been expecting the older members of their workforce to move on as naturally as the aged-in to qualifying for Social Security and could start making withdrawals from tax-deferred retirement accounts without penalty. The expectation was that younger workers with different skills could help reshape how they do business.
That desire could turn out to be bad news for middle-aged and younger workers. Because age discrimination by employers is illegal, it’s risky to target older workers. That could give older workers some new leverage with their employers, who could turn to offering buy-outs. Another option is the nascent practice of retirement-track positions. These jobs are designed to allow older workers to transition to retirement by putting them in positions to oversee and train younger workers, transferring knowledge and skill, and moving to shortened work weeks.
The Bottom Line
Older workers worried that they can’t afford to retire are staying on the job longer, causing concern among corporate executives who want their higher-priced employees to move on and open senior positions for younger workers.
Retirement Planning Tips
A financial advisor can help you get ready for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Use SmartAsset’s free retirement calculator to get a sense of if you are on track to meet your retirement goals.
Photo credit: ©iStock.com/Moon Safari, ©iStock.com/oatawa
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