RBC Global Asset Management Inc. announces change to the investment strategies and management fee reduction for RBC Quant Emerging Markets Dividend Leaders ETF
TORONTO, /CNW/ - RBC Global Asset Management Inc. ("RBC GAM Inc.") today announced a change to the investment strategies and a management fee reduction for RBC Quant Emerging Markets Dividend Leaders ETF (TSX: RXD /RXD.U) (the "ETF").
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Globe and Mail
31 minutes ago
- Globe and Mail
I Predict This "Magnificent Seven" Stock Will Crush Expectations
The "Magnificent Seven" stocks -- Apple, Amazon, Meta Platforms, Alphabet, Microsoft, Nvidia (NASDAQ: NVDA), and Tesla -- have all generated impressive returns for their long-term investors. All seven stocks are included in the S&P 500 and Nasdaq-100 indexes, and they often drive the market's performance with their size, growth, and influence. But after years of big gains, most of the Magnificent Seven stocks are losing their luster. Apple is still overwhelmingly dependent on the iPhone, which is vulnerable to high tariffs, competition, and supply chain constraints. Amazon faces stiff competition from cheaper cross-border competitors, Alphabet's Google is being slammed by antitrust regulators and struggling to keep pace with OpenAI's ChatGPT and other generative artificial intelligence (AI) services, and Microsoft might be headed for an ugly breakup with OpenAI as the AI start-up openly rebels against its top investor. As for Tesla, Elon Musk's divisive actions are likely driving away its potential customers in the saturated EV market. Meta and Nvidia face fewer near-term headwinds than the other five stocks. However, Meta generates nearly all of its revenue from ads, and its growth could slow down as the global economy cools off. Nvidia certainly isn't immune to economic downturns and recessions, but the secular expansion of its AI chipmaking business could offset a lot of that pressure. So looking ahead, I believe Nvidia will continue to shatter Wall Street's expectations and outperform the other Magnificent Seven stocks for the foreseeable future. How did Nvidia become the hottest "Magnificent Seven" stock? Nvidia is the world's largest producer of discrete GPUs. It designs its own chips, but it outsources its manufacturing to third-party foundries like Taiwan Semiconductor Manufacturing. With that "fabless" model, Nvidia doesn't need to spend billions of dollars to upgrade its own foundries or develop the smallest, densest, and most power-efficient manufacturing nodes. Nvidia once generated most of its revenue from its gaming GPUs, which can also be used to mine certain cryptocurrencies. But in its latest quarter, it generated less than 9% of its revenue from its gaming GPUs. A whopping 89% came from its data center GPUs -- which include its older A100 chips and current-gen H100 and H200 chips. Nvidia launched its first data center GPUs back in 2008. Unlike traditional CPUs, which only process a single piece of data at a time through scalar processing, GPUs use vector processing to process a broad range of integers and floating-point numbers simultaneously. That makes them better suited for processing complex AI tasks than stand-alone CPUs. Nvidia's sales of data center GPUs rose from 2016 to 2022 as the cloud and AI markets expanded, but they didn't explode until 2023 (fiscal 2024) -- when OpenAI's launch of ChatGPT in late 2022 sparked a global AI infrastructure race. Here's how rapidly that growth engine expanded from fiscal 2022 to fiscal 2025 (which ended this January). Metric FY 2022 FY 2023 FY 2024 FY 2025 Data center revenue growth 58% 41% 217% 142% Data center as percentage of total revenue 39% 56% 78% 88% Total revenue growth 61% 0% 126% 114% Data source: Nvidia. From fiscal 2025 to fiscal 2028, analysts expect Nvidia's revenue and earnings per share to grow at compound annual growth rates of 30% and 28%, respectively, as the AI market continues to expand. Its stock still looks reasonably valued relative to those estimates at 36 times forward earnings. But those estimates could be too conservative -- since Nvidia has comfortably beat Wall Street's top- and bottom-line expectations for nine consecutive quarters. So as the top seller of the picks and shovels for the AI gold rush, Nvidia's revenues and profits should keep crushing analysts' expectations. Why will Nvidia remain the hottest Magnificent Seven stock? Nvidia controls about 98% of the data center GPU market, according to TechInsights. It locks in those customers with its proprietary Compute Unified Device Architecture (CUDA) programming platform. When developers write their AI applications on CUDA, they become optimized for Nvidia's GPUs and can only be executed on its chips. If they want to run that same application on another GPU, they need to be rewritten in other frameworks. That stickiness widens its moat against AMD and other challengers. Nvidia's sales in China are being throttled by the U.S. export curbs, but it can easily offset that pressure with its stronger chip sales in other markets. It can also keep selling less powerful variants of its flagship chips (like its modified H20 chip) to its Chinese customers. 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Globe and Mail
an hour ago
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Globe and Mail
an hour ago
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NFLX Outperforms Sector, Competition Robust Content Pipeline and Gaming Evolution Aid Prospects Netflix's content strategy continues to demonstrate remarkable strength with an ambitious slate of programming scheduled for the rest of 2025 and beyond. The highly anticipated final season of Squid Game, the platform's most popular series ever, debuts on June 27, promising to drive significant subscriber engagement and potential new sign-ups during a typically slower summer period. The company's live programming strategy is gaining traction with the Taylor vs. Serrano boxing rematch scheduled for July 11, building on the success of their previous fight, which became the most-watched professional women's sports event in U.S. history. Netflix has also secured a second NFL Christmas Day game for 2025, expanding its sports programming footprint and attracting premium advertising dollars. Beyond marquee events, Netflix's global content production continues to strengthen local market penetration. The company's $1 billion investment commitment in Spain between 2025 and 2028, following similar substantial investments in Korea and Mexico, demonstrates its strategy of creating authentic local content that can achieve global appeal. Netflix's gaming initiative continues to mature, with the company demonstrating significant progress in developing immersive narrative games based on proprietary intellectual property, such as Squid Game: Unleashed, which will receive updates coinciding with the final season release. The gaming portfolio spans mainstream established titles like Grand Theft Auto, family-friendly options, including the upcoming Peppa Pig game, and innovative socially engaging party games that transform traditional living room entertainment. With consumer gaming spend representing approximately $140 billion globally (excluding China and Russia), Netflix's measured approach to this market demonstrates long-term strategic thinking while maintaining focus on core streaming excellence. Revolutionary Physical Expansion Through Netflix House The announcement of Netflix House represents a groundbreaking strategic initiative that extends the company's reach beyond digital screens into physical experiential entertainment. The first two locations, spanning over 100,000 square feet each, will open in Philadelphia's King of Prussia Mall and Dallas's Galleria Dallas in late 2025, with a third location planned for the Las Vegas Strip in 2027. These immersive entertainment destinations will feature experiences based on popular Netflix properties, including Wednesday, Squid Game, ONE PIECE, and Stranger Things. 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Netflix's ad-supported subscription tier has witnessed strong adoption, with more than 55% of new subscribers in markets where available choosing the ad-supported option, demonstrating strong consumer acceptance of this lower-priced alternative. Management projects advertising revenues will double in 2025 and reach $9 billion annually by 2030, representing a substantial new revenue stream that enhances Netflix's monetization capabilities. Management's ambitious long-term vision includes doubling revenues by 2030 and achieving a $1 trillion market capitalization. This growth strategy encompasses expanding content libraries, developing live programming options, enhancing gaming capabilities, and building advertising business scale. With full-year 2025 revenue guidance of $43.5 to $44.5 billion and free cash flow expectations of $8 billion, Netflix appears well-positioned to execute on these strategic initiatives. The Zacks Consensus Estimate for NFLX's 2025 revenues is pegged at $44.47 billion, indicating 14.01% year-over-year growth. The consensus mark for earnings is pegged at $25.32 per share, indicating a 27.69% increase from the previous year. See the Zacks Earnings Calendar to stay ahead of market-making news. Investment Considerations for the Second Half of 2025 While these fundamental strengths support holding Netflix stock through the second half of 2025, the significant year-to-date appreciation suggests caution for new investors. Netflix trades at a premium with a forward 12-month P/S ratio of 11.17 compared to the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 4.12. The current valuation levels may have largely priced in near-term positive developments, particularly given the strong Q1 performance and positive full-year guidance. NFLX's P/S F12M Ratio Depicts Premium Valuation Current shareholders benefit from Netflix's diversified growth strategy spanning traditional streaming, advertising, live events, and now physical experiences. The company's proven ability to adapt and innovate in the rapidly evolving entertainment landscape, combined with strong financial metrics and shareholder-friendly policies, justifies maintaining positions despite the recent rally. For prospective investors, patience may prove rewarding. Market volatility or temporary execution challenges could provide more attractive entry points later in 2025, allowing new investors to participate in Netflix's long-term growth story at more reasonable valuations while benefiting from the company's expanding entertainment ecosystem and robust content pipeline. NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report This article originally published on Zacks Investment Research (
