The Accent Group Ltd (ASX: AX1) share price offers a significant investment opportunity, according to some brokers.

Accent is an ASX retail share that sells a wide array of shoes through a range of different brands and stores. The company owns and sells some of the brands and acts as the distributor for others. Well-known brand names it deals with include Glue Store, Nude Lucy, Skechers, Stylerunner, The Athlete’s Foot, Vans and Timberland.

Brokers think the Accent share price could sprint higher

Brokers UBS and Morgan Stanley are both very optimistic about where the company could be headed over the next 12 months.

UBS has a price target on Accent of $2.50. That suggests a possible share price rise of 115% in a year.

The Morgan Stanley price target is $2.70 on the shoe business, implying a potential upside of more than 130%.

Given the Accent share price has fallen around 50% in the year to date, both of these price targets suggest a significant turnaround for the company.

These price ratings came after the latest trading update from the business.

Accent trading update

Accent said that sales performance from late February had improved compared to the 10% decline in like-for-like sales reported in the first eight weeks but remained subdued compared to expectations.

The ASX retail share said at the end of April 2022 that it continued to focus on a full price, full margin sales strategy, which helped grow the gross profit margin in percentage terms ahead of both expectations and last year.

Management noted that the overall inventory levels were in line with the plan, although the company continued to experience some delays and cancellations from third-party brand partners.

Initiatives to grow profit

If the business can grow profitability, then this could help the Accent share price.

It’s doing a number of things. Opening new stores is one of the main parts of the strategy – Accent said it was planning to open 140 stores in FY22 while closing stores where it could not achieve sustainable renewal terms.

Accent advised it was accelerating the growth plan for Glue Store, which continues to perform “strongly”. It also has an “ambitious” growth plan for Stylerunner, with a focus on Stylerunner The Label vertical apparel and store roll-out.

It’s growing the Trybe business and doing more The Athlete’s Store franchise buy-backs.

The ASX retail share is restructuring the Reebok distribution agreement to move to a new Australian distributor while at the same time securing access to a “full range” of Reebok products from that distributor for its multi-brand banners.

Accent share price valuation

Looking at the UBS estimates – the Accent share price is valued at 17x FY22’s estimated earnings and under 8x FY23’s estimated earnings.

The grossed-up dividend yield is projected by UBS to be 8.6% in FY22 and 16% in FY23.

The post Why brokers think Accent shares are a ‘shoe-in’ for ASX investors appeared first on The Motley Fool Australia.

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• Top ASX dividend shares to buy in June 2022
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• Top broker tips Accent share price to deliver 65% upside AND juicy dividends
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The James Hardie Industries Plc (ASX: JHX) share price has nearly halved since the start of 2022 and some fundies believe the bottom is nigh.

They’re hopeful for the building materials company’s future, noting it’s a buy in their eyes.

At the time of writing, the James Hardie share price is $28.65, 4.56% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 2.08%.

Let’s take a closer look at what’s got experts bullish on the James Hardie share price.

Why experts think the James Hardie share price is a buy

The James Hardie share price has been hammered this year. In fact, it plunged to its lowest point in almost two years – $28.62 – this morning.

But its decline has reportedly presented a strong buying opportunity, according to fundies.

Perpetual’s Anthony Aboud recently told Livewire the company’s stock has tumbled due to pressure from rising mortgage costs in the US and shifts in management.

However, the company’s current price and financial year 2023 guidance has piqued Aboud’s interest and sees him rating the stock a buy.

James Hardie is expecting to report between US$740 million and US$820 million of income next financial year. That would represent an increase of at least 19% on that of financial year 2022 (ended 31 March).

Meanwhile, Clime Investment Management’s Will Riggall told the Australian Financial Review the company has historically performed well in both good and bad times.

Thus, while the US housing market might be hit by rising interest rates in the short term, demand for James Hardie’s products should be supported over the long term.

Riggall also reportedly noted the company’s business is “less cyclical” than it has previous been, mostly due to greater earnings from US housing repairs and remodels.

Finally, a similar sentiment has been expressed by Sage’s Sean Fenton. The portfolio manager told Livewire the James Hardie share price looks like a buy at its current level.

“At the end of the day, it’s a quality business, which is growing its share of the siding market,” Fenton said.

“It’s fallen far enough now that, particularly in that growth part of the market for a business of that quality, it looks good value.”

The post Why the James Hardie share price has ‘fallen far enough’: fundie appeared first on The Motley Fool Australia.

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• Why did the James Hardie share price just hit a new 52-week low?
• 3 ASX 200 shares defying Friday’s falls to leap higher
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Why is the James Hardie share price surging higher today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Dogecoin (CRYPTO: DOGE) price is down 10% since this time yesterday, currently trading for 5.5 US cents.

That puts the Shiba Inu themed crypto, often touted by Elon Musk, down 68% in 2022 and down a painful 93% since its all-time high of 73.8 US cents, reached on 8 May 2021.

At the current price, Dogecoin has a market cap of US$7.3 billion.

With the overnight losses, that’s now down more than US$86 billion from the total market valuation at its peak.

Now disgruntled US crypto investor Keith Johnson, who claims to have lost money investing in the crypto, wants Musk and the companies he founded, Tesla Motors (NASDAQ: TSLA) and SpaceX, to stump up for that loss of US$86 billion, plus double that again in punitive damages.

Dogecoin, Musk and a whopping lawsuit

As Reuters reports, the complaint, filed in federal court in Manhattan New York, accuses Musk and the two companies of racketeering for hyping Dogecoin and driving the price higher, then letting it crash.

The complaint states:

Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading. Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.

The US$258 billion in damages Johnson is seeking equate to an estimated three times the meme coin’s losses since May 2021.

Atop the damages, Johnson is seeking to legally prevent Musk from promoting Dogecoin and wants trading in the token declared to be gambling under both Federal and New York state laws.

Has the world’s richest man influenced prices?

Earlier in 2021, Musk tweeted that Tesla would allow customers to pay for merchandise using Dogecoin. The token soared in the hours following that tweet but gave back most of those gains almost as quickly.

Musk has mentioned the token more often in tweets, but it’s his Saturday Night Live appearance later in 2021 that is also named in the complaint. During the show, the billionaire made several jokes about Dogecoin. The price dropped more than 20% after the airing.

According to the lawsuit, the meme token came under pressure after Musk hosted “Saturday Night Live and, played a fictitious financial expert on a Weekend Update segment, called Dogecoin ‘a hustle’.”

Lawyers for Tesla, SpaceX, Musk and Johnson have not yet responded to media requests for comments.

The post Dogecoin investor sues Elon Musk for US$258 billion. Here’s why appeared first on The Motley Fool Australia.

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• The Dogecoin price just leapt 15%. Here’s why
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• ‘Wherever there’s smoke there’s probably crypto,’ warns Dogecoin founder
• What’s the outlook for crypto prices in June? Industry insiders weigh in
• Why did crypto prices get massacred in May?

Motley Fool contributor Bernd Struben 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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a heavy decline. The benchmark index is currently down 2.1% to 6,451.5 points.

Here’s what is happening on the ASX 200 today:

GUD shares crushed on guidance downgrade

The GUD Holdings Limited (ASX: GUD) share price has been sold off today in response to a guidance update. As you might have guessed from the share price reaction, that update was not a good one. The diversified products company has downgraded its underlying operating earnings guidance to $147 million in FY 2022. This is down from its previous guidance of $155 million to $160 million. In response to the news, Citi downgraded its shares and slashed its price target.

Tech shares tumble

The tech sector has been hit hard today during the market selloff. The likes of Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) are recording particularly heavy declines following a poor night of trade on the tech-focused Nasdaq index. This has led to the S&P ASX All Technology index dropping a sizeable 2.8% at the time of writing.

Gold miner rise

One side of the market which is performing positively is the gold sector. This has seen the S&P/ASX All Ords Gold index storm 3.3% higher today. The highlight has been the Evolution Mining Ltd (ASX: EVN) share price with a 5% gain. This has been driven by a rebound in the gold price and a broker upgrade by UBS. The latter saw Evolution upgraded to a buy rating with a $4.05 price target.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Evolution share price with a 5% gain for reasons mentioned above. Going the other way, the worst performer by some distance has been the GUD share price with a 21% decline. This follows its guidance downgrade and bleak outlook commentary.

The post ASX 200 midday update: GUD crashes, tech shares tumble appeared first on The Motley Fool Australia.

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• Down 20% today: Why the GUD share price is crashing to a 6-year low
• Block share price sinks again and is now down over 50% since its ASX listing
• ‘The bar has been set low’: Why this top broker just upgraded the Evolution Mining share price
• ‘Stellar performer’: Why this fundie is buying the dip in the NAB share price
• Investing in ASX 200 gold shares? Here’s the latest on the gold price forecast

Motley Fool contributor James Mickleboro 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 Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

Although the markets looked fine yesterday after the Federal Reserve raised its benchmark lending rate by three-quarters of a percentage point, it didn’t take long for the panic to set back in. The Dow Jones Industrial Average lost more than 740 points today as investors digested the Fed’s biggest hike since 1994 and turned their attention to the economic outlook.

The Dow closed the day below 30,000 for the first time in nearly a year and a half. Mortgage rates also soared higher, as investors grew more concerned about a potential recession and the magnitude of that recession.

The big losers on the day were American Express, Nike, and Caterpillar. While the majority of the Dow finished the day down, there were four stocks in the index that managed to survive the blood bath.

The 4 survivors

The big-box retailer Walmart (NYSE: WMT) finished the highest of any Dow stock, gaining just over 1% on the day. Over the last five days, Walmart has also managed to stay in the green despite very difficult trading conditions.

While we’ve heard large retailers talk about the shift away from discretionary goods in recent days, the consumer is still spending heavily on necessities such as groceries, which can greatly benefit Walmart, which now generates about 60% of its revenue from groceries.

Grocery stocks can do well in inflation because the stores can pass the higher costs onto the consumers. Walmart said earlier this year that it continues to take market share in the U.S. grocery category. The company grew grocery sales in the low double-digit percentage range last quarter.

The consumer goods giant Procter & Gamble (NYSE: PG) also managed to scratch out a gain today, with shares up roughly 0.6%. 

With brands such as Pampers, Tide, Bounty, and Gillette, among many other cosmetics and household brands, it made sense that investors shifted over to a stock like Procter & Gamble today. When there are concerns over a recession and rates are on the rise, the market will look less favorably on tech and growth stocks because they are riskier. In addition, higher rates reduce the value of their future cash flows, as well as their earnings power.

But people are still going to need paper towels, diapers, and shaving equipment during a recession, making this stock more recession-proof than others. The other two stocks that eked out a gain today were Merck and Johnson & Johnson.

Should you pile into these names?

I definitely don’t hate the idea of adding some of these more recession-proof names like Walmart or Procter & Gamble to your portfolio because people are always going to need these products, making these companies potentially more durable during the volatility.   

But that doesn’t mean I wouldn’t also take this sell-off as an opportunity to go bargain hunting. If a recession occurs, it could end up being a mild one and recessions don’t always last that long either. When looking for discounts, take a long view and focus on the business model as opposed to near-term price action. 

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

The post The Dow got crushed — Here are 4 stocks that survived the bloodbath appeared first on The Motley Fool Australia.

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• Warren Buffett’s been bargain hunting following the stock market sell-off. Here’s the sector he’s been buying (and selling)

Bram Berkowitz has no position in any of the stocks mentioned. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has recommended Nike. 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.

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The Northern Star Resources Ltd (ASX: NST) share price is trading 4.6% higher at $8.56 today, despite no news from the gold miner.

That compares very favourably with the S&P/ASX 200 Index (ASX: XJO), which is currently down 2.3%.

Meanwhile, gold has lunged back to a key support level and is now trading at US$1,846 per troy ounce, still up 4.73% for the last 12 months.

The ASX 200 share has tracked gold closely over the past five days, as seen below.

What’s up with Northern Star share price?

Investors have pushed the Northern Star share price off a three-month low of $7.98 on 15 June. Today’s gain is a continuation of that short-term trend.

Both the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 300 Metals & Mining Index (ASX: XMM) have slipped lower today, each almost 3% in the red on last check.

Gold has also spiked from its three-month low, having jumped more than 2% in the last two days.

Despite sliding from highs of US$2,052 per troy ounce on 8 March, it is one of the only asset classes to remain above water in 2022, on a 12-month basis.

It has traded sideways these past two months, and we’ll have to wait and see where it heads next.

Aussie gold shares also got a markup after bullish notes on the sector from analysts at UBS and Macquarie, The Australian reports.

Zooming out, it’s been less impressive for the Northern Star share price, which has cycled downwards by 10% over the past last six months.

Should today’s upward trend continue, it could break out above a key resistance level and signal a reversal of the downtrend. There are many variables currently at play, however, and forecasting share price moves is a fruitless exercise.

In the last 12 months, the Northern Star share price has slipped more than 16% into the red. It is also down 10% this year to date.

The post Here’s why the Northern Star share price is smashing the ASX 200 on Friday appeared first on The Motley Fool Australia.

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• ‘The bar has been set low’: Why this top broker just upgraded the Evolution Mining share price
• Investing in ASX 200 gold shares? Here’s the latest on the gold price forecast
• What’s with the Northern Star share price on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• Why this fund manager sees major upside potential for the Northern Star share price

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The GUD Holdings Limited (ASX: GUD) tumbled to its lowest level since 2016 after its profit warning that prompted a leading broker to downgrade its shares.

The auto parts and water products manufacturer announced after the market closed yesterday that its FY22 underlying earnings before interest, tax and amortisation (EBITA) would come in at around $147 million.

That compares to its previous guidance of between $155 million and $160 million. The downgrade also sits around 10% below the census forecast.

GUD share price careens on downgrades

The GUD share price has crashed 20% to $7.67 at the time of writing, while the S&P/ASX 200 Index (ASX: XJO) is down 2.33%.

The profit downgrade prompted Citigroup to cut its recommendation on the company from buy to neutral.

The broker also lowered its price target by 36% to $9.95 a share. While the new target price implies a decent upside to where the GUD share price is sitting, that’s unlikely to provide much comfort to shareholders during these turbulent times.

Clouded by uncertainty

Citigroup explained:

We downgrade the stock to neutral reflecting increased uncertainty surrounding the earnings recovery, which is primarily reliant on OEM supply normalising, which may take longer than expected to recover and is outside GUD’s control. We also wait to see more evidence that gearing reduces from current levels.

GUD management blamed volatile supply chains, falling new vehicle sales and cost pressures for the downgrade.

The group has increased prices for its products and is planning to lift prices again in July and August, but this has yet to offset margin pressure.

Lack of new cars hurts GUD

Further, its ill-timed acquisition of AutoPacific Group is also hurting as new car sales volumes have been hampered by the lack of supply. This in turn is also dragging on its ECB (bullbars) and CSM (trays and fit-outs for utes) sales.

Citi said this news shouldn’t be a great surprise after competitor ARB Corporation Limited (ASX: ARB) issued a similar update last month.

One small bright spot

If there was a silver lining in GUD’s profit downgrade, it’s to do with the legacy auto parts business which the company said continued to see “solid demand”. Owners are forced to keep their vehicles for longer due to the shortage of new vehicles. This means more repairs and spare parts.

The readthrough is positive for the Bapcor Ltd (ASX: BAP) share price as well. Although this isn’t saving Bapcor from today’s brutal market sell-off, with its shares down 2.47% at $5.52.

The post Down 20% today: Why the GUD share price is crashing to a 6-year low appeared first on The Motley Fool Australia.

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• ‘Stellar performer’: Why this fundie is buying the dip in the NAB share price
• 5 things to watch on the ASX 200 on Friday
• Is a recession coming to Australia this year?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Despite rising bond yields, here’s why I’ll keep investing in ASX shares

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited and Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price is defying the market selloff on Friday.

In morning trade, the struggling infant formula company’s shares are up 2.5% to $4.11.

Why is the A2 Milk share price rising today?

Investors have been bidding the A2 Milk share price higher today for a couple of reasons.

One is an update out of smaller rival Bubs Australia Ltd (ASX: BUB), which revealed strong sales growth in the second half. Though, this is predominantly being driven by its deal with the US government, which A2 Milk is not party to.

What else?

Another catalyst for the rise in the A2 Milk share price could be news that the Abbott Laboratories infant formula manufacturing plant in Michigan has shut down just a couple weeks after resuming production.

On this occasion, Abbott Laboratories was forced to close the plant due to flooding following inclement weather. Abbott commented:

Abbott has stopped production of its EleCare specialty formula that was underway to assess damage caused by the storm and clean and re-sanitize the plant. We have informed FDA and will conduct comprehensive testing in conjunction with the independent third party to ensure the plant is safe to resume production. This will likely delay production and distribution of new product for a few weeks.

This appears to have sparked hopes that the US government will come knocking on A2 Milk’s door for addition supply. Though, it is worth noting that Abbott’s manufacturing was going strong prior to this latest shutdown. It explained:

Abbott will have produced 8.7 million pounds of infant formula in June for the U.S., or the equivalent of 168.2 million 6 oz. feedings. This is 95% of what we produced in January, prior to the recall and does not include production from Sturgis.

Time will tell if A2 Milk benefits from this crisis.

The post Here’s why the A2 Milk share price is defying the market selloff on Friday appeared first on The Motley Fool Australia.

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• Where next for the A2 Milk share price?
• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• Is it time to buy A2 Milk and Treasury Wines for better China relations?
• These were the best performing ASX 200 shares last week
• What to do with these 3 pummelled ASX shares: advisor

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Newcrest Mining Ltd (ASX: NCM) share price is shrugging off the latest sell-off on the ASX this morning.

At the time of writing, shares in Australia’s largest gold mining company are climbing 2.57% to $24.52.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is yet again deep in the red by 2.32% to 6,438.4 points. This means the benchmark index has now lost more than 8% in the past week.

What’s going on with Newcrest?

Despite the company not providing any new announcements to the market today, investors are bidding up the Newcrest share price.

The price of gold has rebounded for a second consecutive session overnight to fetch close to US$1,850 per ounce.

After hitting a one-month low of US$1,805 on Tuesday, the yellow metal has seen an uptick following Wall Street’s slump.

Furthermore, momentum is shifting to safe-haven assets such as gold after the Federal Reserve handed down a 0.75% rate hike this week in an attempt to combat inflation.

For context, this is the largest interest rate rise by the United States central bank since 1994.

Also likely helping the Newcrest share price is the latest reports from UBS and Macquarie.

Both brokers are viewing the gold sector as a favourable choice amid the extreme volatility on the ASX.

According to The Australian, UBS upgraded Newcrest peer Evolution Mining Ltd (ASX: EVN) to a “buy” rating.

This appears to be having a positive effect on the other gold miners as recession fears mount again.

Newcrest share price summary

Regardless of edging higher today, the Newcrest share price remains relatively flat in 2022.

Although, when looking at the past 12 months, its shares have fallen by around 9%.

Newcrest commands a market capitalisation of approximately $21.35 billion.

The post Why is the Newcrest share price defying Friday’s sell-off? appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 gold shares? Here’s the latest on the gold price forecast
• 5 things to watch on the ASX 200 on Friday
• Why is the Newcrest share price glittering on Thursday?
• 5 things to watch on the ASX 200 on Friday
• Why has the Newcrest share price tumbled 9% in a month?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

What happened 

Shares of Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) were all plummeting this morning following the Federal Reserve’s decision to raise the federal funds rate by 75 basis points yesterday.

The tech-heavy Nasdaq Composite fell 3.7% this morning, and the tech giants followed suit, with Meta losing 4.8%, Amazon down 4.2%, and Apple falling 3.5%.

So what 

The Fed is laser focused on bringing down inflation, which is at a 40-year high, but investors across all sectors are worried that aggressive rate hikes will slow the economy down too much and potentially even cause a recession.

Those fears were magnified after the Fed’s significant interest rate increase yesterday, which was its largest rate increase since 1994.

After an initial positive response to the rate hike in yesterday’s afternoon trading, investors are now growing increasingly concerned that the Federal Reserve will have to continue making elevated rate hikes throughout this year in order to tame inflation.

Meta, Amazon, and Apple investors may be latching on to comments made by Fed chairman Jerome Powell, who said yesterday that “from the perspective of today, either a 50-basis-point or a 75-basis-point increase seems most likely at our next meeting.” Though Powell said he doesn’t expect 75-basis-point hikes to be common.

While stocks across all sectors have fallen lately, technology stocks have especially taken it on the chin as some investors flee high-growth investments and look for safer places to put their money.

Meta, Amazon, and Apple investors, in particular, are likely worried that a potentially slowing economy could hurt Meta’s advertising business, while Amazon and Apple shareholders may be focusing on supply chain problems, rising material and shipping costs, and the potential for consumer demand for products to slow down in the months ahead.

Now what

While Meta, Amazon, and Apple shareholders are right to keep a close eye on the Fed’s moves and consider how the rake hikes could affect the economy, they should also try to keep a long-term perspective on their investments.

All of these companies have plenty of cash on hand to weather an economic storm, and they’ve already proved that they can withstand uncertain circumstances and adjust some of their business strategies, as they had to during the height of the pandemic.

That doesn’t mean that the stocks Meta, Amazon, and Apple won’t have more turbulent times ahead, but it’s worth remembering that keeping a five-year timeline (or longer) on your investments is the best way to keep yourself from overreacting while others are panicking. 

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

The post Why Meta, Amazon, and Apple shares were falling today appeared first on The Motley Fool Australia.

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More reading

• Why Amazon stock crushed the market today
• 2 Warren Buffett stocks to buy and hold forever
• Apple Is Starting to Walk and Talk Like a Bank. Could It Ever Become One?
• Amazon Just Split Its Stock: Here’s What Comes Next
• Better buy: Amazon vs. Alibaba

Chris Neiger has positions in Apple. John Mackey, 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 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 Amazon and 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.

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