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The 'Halftime' Investment Committee debate if Apple shares are overvalued

The 'Halftime' Investment Committee debate if Apple shares are overvalued

CNBC2 days ago

CNBC's Steve Kovach joins 'Halftime Report' at Apple's WWDC with the latest on what to expect from the company.

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When does iOS 26 come out? Everything Apple iPhone users need to know
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When does iOS 26 come out? Everything Apple iPhone users need to know

Apple's next iPhone software generation, iOS 26, has been announced, and though we don't have a specific release date yet, there's a key month iPhone users should keep an eye out for. Unveiled at Apple's 2025 Worldwide Developers Conference (WWDC) on Monday, June 9, the freshly rebranded iOS 26 promises to 'elevate the iPhone experience' through a series of features including an updated lock screen design, better translation features, enhanced Apple Intelligence, a new 'liquid glass' design, among others. Here's what we know so far about the upcoming release of iOS 26, according to Apple and its CEO Tim Cook. There is no specific general release date for iOS 26, but iPhone owners can expect to have the software update available in mid-September 2025. Apple usually makes its software updates available a few days before the release of the newest iPhone. But users can anticipate confirmation during the iPhone 17 event in early September. Additionally, the beta version of iOS 26 has already become available for registered Apple Developers and this version will expand to the public as soon as July 2025. To gain access to the beta version, users can access it through the Apple Beta Software Program. These are some of the new features of iOS 26 Apple has announced: Liquid Glass design: The new software aesthetic possesses a translucent glass-like look that, according to Apple, 'reflects and refracts its surroundings, bringing greater focus to content'. Liquid Glass also offers new customization options for apps and widgets with a clear design. Live Translation: iOS will allow you to hold a conversation over phone call, FaceTime or text message with someone who speaks a different language, and live translation will be available in real time. Polls: Users will be able to create polls in iMessage group chats allowing members to vote on topics or questions. Better recording quality while wearing AirPods: AirPods users will have access to 'studio-quality' recording allowing 'iPhone, iPad, and Mac users to record their content with great sound quality and enjoy even clearer calls.' Enhanced battery features: The new software will estimate the expected charging time for your Apple devices and introduce adaptive power mode. In an address during WWDC, Cook said that the software will be available for iPhone 11 onward. Apple confirmed on its website, plus selected generations of the iPhone SE. The models eligible for the update are: iPhone 16e iPhone 16 iPhone 16 Plus iPhone 16 Pro iPhone 16 Pro Max iPhone 15 iPhone 15 Plus iPhone 15 Pro iPhone 15 Pro Max iPhone 14 iPhone 14 Plus iPhone 14 Pro iPhone 14 Pro Max iPhone 13 iPhone 13 mini iPhone 13 Pro iPhone 13 Pro Max iPhone 12 iPhone 12 mini iPhone 12 Pro iPhone 12 Pro Max iPHone 11 iPhone 11 Pro iPhone 11 Pro Max iPhone SE (second generation and later) Reach La Voz reporter Paula Soria at psoriaaguilar@ This article originally appeared on Arizona Republic: When does iOS 26 come out? What iPhone users need to know

Jim Cramer says it's time for the U.S. to negotiate with other countries for rare earth minerals
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time29 minutes ago

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Jim Cramer says it's time for the U.S. to negotiate with other countries for rare earth minerals

CNBC's Jim Cramer on Wednesday said it's necessary for the U.S. to negotiate with countries other than China for rare earth minerals. "We need to make these rare earth deals with the same alacrity that the White House gave out the reciprocal tariffs on 'liberation day.' We need them yesterday," he said. "Then, and only then, will we truly be liberated." China dominates the global market for these critical minerals, producing about 60% and processing almost 90%, CNBC reported. The materials are used in most electronics and are vital to the automotive and defense industries. Officials have warned that the U.S.'s dependence on China for the minerals poses a strategic issue. China imposed export restrictions on rare earth minerals back in April in response to President Donald Trump's harsh tariff hikes. Trump said on Wednesday that China will supply the minerals up front to the U.S. as part of a trade agreement. While he posted on Truth Social that the deal is "done," he also said it's "subject to final approval" between himself and Chinese President Xi Jinping. According to Cramer, the U.S. needs to reach out to countries like Brazil, Vietnam and Australia, who have the raw materials for earth minerals and magnets. The U.S. should make deals with these countries immediately and perhaps wave the high tariffs that the White House put on their imports, he said. Cramer said the U.S. doesn't "have the cards," in negotiations with China because of its reliance on rare earth minerals, even as it tries to disrupt China's manufacturing economy. "What the heck were we thinking when we started a trade war without having this rare earths issue all buttoned up and ready to go?" he asked. The White House did not immediately respond to request for comment Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest

Why Qualcomm's (QCOM) Long-Term Prospects Shine, Even if the Stock Doesn't
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Why Qualcomm's (QCOM) Long-Term Prospects Shine, Even if the Stock Doesn't

Qualcomm (QCOM) has underperformed over the past year, declining 26%, primarily due to macroeconomic factors rather than internal company mechanics. Although the company's fundamentals remain very solid, it has faced some headwinds, such as concerns that its business is too concentrated on Apple (AAPL) for modem revenue, despite its broader operations still being more rooted in the Android ecosystem. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Still, that doesn't stop me from seeing the stock as a long-term Buy—especially since my bullishness comes from Qualcomm's key competitive advantage: its ability to build the Snapdragon platform, which integrates a modem, CPU, and even a GPU chip—something no other competitor can currently match. This positions the company to tap into new business opportunities that could help offset its current customer concentration. Beyond that, Qualcomm's asset-light model allows it to generate very high returns on its investments, highlighting its operational efficiency, strong financial health, and consistent value creation for shareholders. This helps justify the company trading at a slightly stretched valuation when considering its operational profits relative to enterprise value. When looking for value stocks, one of the most important factors—if not the most important—is a company's ability to generate consistent earnings. Examining QCOM's balance sheet reveals a capital-light, high-margin model driven by intellectual property (IP) and characterized by heavy investment in research and development (R&D). As a fabless semiconductor company, Qualcomm relies on external manufacturing partners such as TSMC (TSM) and Samsung (SSNLF) for chip production. Notably, only approximately 7% of its $55.3 billion in total assets is allocated to property, plant, and equipment (PP&E), which is relatively low compared to the industry average. This underscores the efficiency of its asset-light business model and the minimal physical infrastructure required to support its operations. Roughly 18% of its assets are classified as goodwill, indicating a strong track record of acquisitions, which is clearly part of its strategy to acquire intellectual property (IP) or talent rather than build everything in-house. One recent example is the $2.4 billion acquisition of the UK-based semiconductor firm Alphawave. Additionally, approximately 12% of Qualcomm's total assets are tied to IP licensing and chip design. That makes sense, given its dominant position in the Android smartphone chip market, especially in the high-end segment with its Snapdragon lineup. Given that around 37% of Qualcomm's total assets are intangible, it's worth considering the company's actual operational efficiency once these intangibles are excluded. To gain a clearer picture, it is sensible to examine how Qualcomm allocates its limited tangible capital to generate profits. Over the past twelve months, Qualcomm produced an operating profit of $12.3 billion. During the same period, its net working capital was approximately $2.7 billion, and its invested capital—mainly property, plant, and equipment, and other intangibles—totaled roughly $8.28 billion. Dividing the operating profit by this invested capital plus working capital yields an eye-catching ~112% return on capital (ROC). That kind of number highlights Qualcomm's exceptional operational efficiency, something typically only seen in asset-light, IP-driven tech or software companies. For context, most of these firms operate with a return on capital (ROC) well below 50%. In short, despite a balance sheet loaded with intangibles, Qualcomm proves that it's highly efficient with the real capital it uses. And that translates into three key advantages: sustainable value creation, a durable competitive moat, and stronger financial flexibility. Even a company with a high return on capital isn't necessarily a buy—not if you're overpaying for it. That's why it's vital to assess operating profitability in relation to the company's total valuation, not just traditional P/E or P/B metrics. One way to do this is by comparing operating profit to enterprise value (EV), which reflects what the market is actually paying for the entire business. In Qualcomm's case, we can measure this by dividing its operating profit by its enterprise value (EV). Over the last twelve months, Qualcomm generated $12.3 billion in operating profit, while its current enterprise value stands at $164.6 billion. That results in an earnings yield of 7.5%. To interpret that number correctly, it should be compared to Qualcomm's cost of capital. Using a 10-year treasury yield of 4.5%, a beta of 1.2, and an equity risk premium of 4–5%, the estimated cost of equity falls between 9% and 10%. Since the earnings yield of 7.5% is below this range, Qualcomm doesn't appear particularly cheap at the moment. However, judged against historic performance against the S&P 500 (SPX), QCOM stock has underperformed. That said, this isn't necessarily a red flag. Even if the stock looks a bit expensive on this metric, Qualcomm continues to create value through its exceptional return on capital and strong cash generation. This is reflected in its sustainable 2.28% dividend yield and $16.5 billion in share buybacks over the past four years. Given Qualcomm's maturity, profitability, and operational efficiency, a lower earnings yield may be viewed as acceptable, reflecting a premium for quality and stability. Analyst sentiment on Qualcomm stock is somewhat mixed. Out of 17 experts who've issued ratings in the past three months, eight are bullish, eight are neutral, and just one is bearish. Still, there's little hesitation when it comes to upside expectations. Qualcomm's average stock price target is at $177.75, suggesting ~14% in potential upside over the next twelve months. While traditional valuation metrics may indicate that Qualcomm is undervalued, I believe that perspective overlooks the company's strong operational efficiency. Qualcomm doesn't need to appear 'cheap' to represent a compelling investment opportunity. Its robust, above-average returns on capital, driven by an asset-light business model, demonstrate its ability to create substantial shareholder value and may, in fact, justify a valuation premium. Viewed through this fundamental lens, and given Qualcomm's consistent track record of long-term value creation, I consider it a solid long-term investment, even at its current, relatively full valuation. Disclaimer & DisclosureReport an Issue 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

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