Latest news with #QQQ
Yahoo
4 hours ago
- Business
- Yahoo
Meta Surges on Blowout Q2 Earnings, Boosting Related ETFs
Shares of Meta Platforms Inc. (META) soared more than 12% to record highs on Thursday after the company reported blockbuster second-quarter earnings and strong guidance for the third quarter. The rally lifted exchange-traded funds with heavy exposure to the stock, including the Communication Services Select Sector SPDR Fund (XLC), where Meta makes up nearly 18% of the portfolio, and the Invesco QQQ Trust (QQQ), where the stock has a 3.5% weighting. Leveraged funds tied to the company also surged. The GraniteShares 2x Long META Daily ETF (FBL) jumped 24% on the day. META Earnings Exceed Estimates Meta reported earnings per share of $7.14, far exceeding analyst estimates of $5.89. Revenue hit $47.5 billion, up 22% year over year and 6% above expectations. The company guided for third-quarter revenue of $49 billion at the midpoint, significantly ahead of the consensus estimate of $46.2 billion. CEO Mark Zuckerberg credited artificial intelligence for driving growth in Meta's core business. 'AI is significantly improving our ability to show people content that they're going to find interesting and useful,' Zuckerberg said on the earnings call. 'Advancements in our recommendation systems have improved quality so much that it has led to a 5% increase in time spent on Facebook and 6% on Instagram just this quarter.' Zuckerberg added that AI is also making Meta's platforms more effective for advertisers while enabling entirely new products, such as AI-powered messaging tools, assistants, and hardware devices. To support these ambitions, Meta has been hiring aggressively, reportedly luring top researchers from rivals like OpenAI and Alphabet Inc. (GOOGL) with lucrative pay packages. These new hires are joining the company's Meta Superintelligence Lab, which is focused on developing next-generation AI models and products. CapEx Aimed at AI The company's Llama family of open-source models has lagged behind rivals like OpenAI's GPT and Google's Gemini, but Zuckerberg said Meta is investing heavily to catch up. Capital expenditures are expected to reach $69 billion this year, with the potential to hit $100 billion in 2026—most of it aimed at scaling up AI infrastructure. While investors have previously balked at Meta's big spending—particularly during the company's pivot to the metaverse in 2021—this time the payoff appears to be coming more quickly. That has helped ease concerns and renew optimism in the company's long-term strategy. Meta hasn't abandoned its metaverse ambitions, but its vision is evolving. Products like the Ray-Ban Meta smart glasses have seen strong demand, and the company is developing more advanced augmented-reality devices that blend its metaverse and AI efforts. For now, investors are clearly encouraged by the combination of a robust advertising business and bold bets on the | © Copyright 2025 All rights reserved Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
Strong Google Q2 Earnings Power QQQ to New Highs
Shares of Alphabet Inc. (GOOG, GOOGL) climbed Thursday after the company reported stronger-than-expected second-quarter results. In turn, major tech-heavy exchange-traded funds like the Invesco QQQ Trust (QQQ) rose as well. Alphabet was last trading up about 2% midday Thursday, nearing its all-time high of just over $206 reached in January. At its session high of nearly $198, the stock was only 4% off that record. The rally helped boost QQQ, even though Alphabet itself has underperformed in 2025. The stock is up 2.4% year to date, trailing both QQQ, which is up 10.9%, and the Communication Services Select Sector SPDR Fund (XLC), which has gained 13.6%. While Alphabet is often thought of as a tech company, it's classified in the communication-services sector under the Global Industry Classification Standard (GICS). Google Beats Estimates The Google parent reported earnings per share of $2.31 for Q2, topping analyst estimates of $2.18. Revenue came in at $81.7 billion, beating expectations of $79.6 billion and marking a 14% year-over-year increase. Investors were particularly encouraged by a nearly 12% rise in search revenue, a signal that concerns over AI-powered chatbots disrupting Google's core business may have been overstated. Google has been aggressively evolving its search platform in the AI era, incorporating features like 'AI Overviews' and a chatbot-style search mode. It also continues to promote its Gemini chatbot, which competes directly with OpenAI's ChatGPT. On the earnings call, CEO Sundar Pichai noted that Gemini now has more than 450 million monthly active users. That still lags ChatGPT, which is estimated to have between 800 million and 1 billion users, but it shows Google is holding its own in the race. Cloud Business Sees the Light Meanwhile, Google Cloud continued to impress, with revenue growing 32% year over year, another sign of robust demand for AI infrastructure. That demand is fueling a surge in capital expenditures. Alphabet raised its capex estimate for 2025 to $85 billion, up from a previous estimate of $75 billion. The jump initially spooked investors, but the stock rebounded as it became clear that the increase was a result of massive demand for Google's cloud services. That rise in AI-related spending also lifted shares of semiconductor stocks like Nvidia Corp. (NVDA) and Broadcom Inc. (AVGO), which supply key components for AI servers and data centers. Both were trading near record highs on Thursday. Pichai emphasized that Alphabet's heavy investment in AI is bearing fruit: 'We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum.' As Alphabet's AI strategy gains traction, tech and communication services ETFs could continue to | © Copyright 2025 All rights reserved 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
24-07-2025
- Business
- Yahoo
Invesco Q2 ETF Assets Leap 32% on Strong QQQM Inflows
Invesco Ltd. (IVZ), the fourth-largest ETF issuer, reported that assets in its business unit that includes exchange-traded funds leapt 32% during the second quarter, compared with the same quarter last year, as equity markets jumped. The unit's assets rose to $546.9 billion from $415.1 billion in last year's second quarter, the company said in a statement. Compared with this year's first quarter, assets swelled 11% from $491 billion. That business doesn't include results from Invesco's biggest fund, the $358.1 billion Invesco QQQ Trust (QQQ), which doesn't produce management fees due to its unit investment trust structure. As the S&P 500 gained 11% during the quarter, Invesco's ETF and index business generated $40.6 billion in market gains, nearly 12 times the $3.8 billion the business created during last year's second quarter. In this year's first quarter, the business suffered a loss of $10.9 billion as markets tumbled amid President Donald Trump ramping up a series of tariff battles with trading partners around the globe. The Atlanta-based company produces income from fees on the 242 ETFs it manages. QQQM Pulls in Big Money While QQQ doesn't generate fees, a copycat that does, the $55.1 billion Invesco NASDAQ 100 ETF (QQQM), pulled in a net $5.6 billion in flows during the quarter. The company said last week it aims to restructure QQQ as an open-ended fund and generate fees. The company highlighted 'Another strong quarter with annualized organic growth of +10% and continued market share gains with strength across geographies,' in a slide presentation. Overall, the ETF and index business's net inflows fell 23% to $12.6 billion from the first quarter and were little changed year over year. This was partially due to net outflows of $2.9 billion from the company's second-largest fund, the $73.9 billion Invesco S&P 500 Equal Weight ETF (RSP). That fund, which tracks an equal-weighted index of S&P 500 companies, charges a 0.2% management fee, compared with the passive, market-cap weighted, $701.8 billion Vanguard S&P 500 ETF (VOO), the world's largest ETF, which charges 0.03%. QQQM Second-Quarter Flows Source: and FactSet Data ETF Issuers Boosted by Market Gains Other publicly traded ETF issuers reported that second-quarter market gains boosted their businesses. The largest, Blackrock Inc. (BLK), last week said its iShares ETF franchise attracted $85 billion in net flows during the second quarter and ETF assets under management reached $4.7 trillion. Charles Schwab Corp. (SCHW), the fifth-largest U.S. ETF issuer, said assets in its exchange-traded funds rose 26% during the second quarter. WisdomTree Inc. (WT) is the final large ETF issuer set to report second-quarter earnings, which it will do Friday, July | © Copyright 2025 All rights reserved 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
Bloomberg
23-07-2025
- Business
- Bloomberg
Invesco's QQQ Gambit Seen Unlocking $150 Million in Revenue
Invesco Ltd.'s move to convert its famed tech fund QQQ into an open-ended structure could translate into a $150 million yearly windfall for the asset manager. Chief Financial Officer Allison Dukes said on the company's earnings call Tuesday that transforming the Invesco QQQ Trust Series 1 from a unit investment trust into an ETF could benefit net revenue and adjusted operating income by about four basis points — or roughly $150 million, Bloomberg Intelligence estimates. In its current format, Invesco sees virtually none of the fee revenue that QQQ generates, but ETF conversion would allow the firm to reorder the revenue breakdown.
CNBC
22-07-2025
- Business
- CNBC
The charts are showing signs that tech could pull back in the near term
The growth trade has gone almost parabolic since the April lows with a 40% rise in less than four months. I think we're in a secular bull market and should be considerably higher one year from now. Near term, however, I also think a pullback is possible. Should you care? I don't know. It depends on your perspectives and objectives. But if a 5% pullback is something you consider actionable, then a hedge in the Nasdaq might make sense. One investor's bull market is another investor's bear market. Trading and investing is all about your own personal perspectives and objectives. There is not one proper way to invest and speculate in the markets. You have to decide what best meets your objectives. If you're not sure how to answer those questions, please consult a financial advisor. It doesn't make you ignorant. We have actual scientists as clients - much smarter than I - who need help answering those questions. We're trained for this. Looking at the Invesco QQQ Trust , which tracks the Nasdaq-100, you'll see a sharp rise from the April lows. The Relative Strength Indicator (RSI) put in a commensurate rise with the QQQ price through May. In June, QQQ broke through the former $540 double top resistance level, which is now acting as support and a target level should the pullback I'm about to describe starts to manifest. However, when the $540 ceiling was being penetrated, the RSI did not confirm with a push to new highs indicating that momentum, or rate-of-change, was waning. Think of a ball being thrown in the air. Towards the apex of the throw the ball continues to move higher, but at a slowing rate of change until the direction changes and gravity takes over. In my short-term Active Opps model for our more active clients, I plan to bring in a short hedge via the ProShares Ultrashort QQQ ETF (QID) to protect gains in our core holdings. QID is trading around $24.61 and will look to exit the trade at a loss if it trades below $24.25. Remember, as QQQ goes up the QID goes down. Wednesday kicks off the heart of megacap growth earnings with Alphabet, ServiceNow and Tesla reporting. It gets busier next week with more earnings and next Federal Reserve meeting. Looking at some other macro markets with a potential impact on the stock market, I'm seeing gold (left chart) threatening a break through $317 resistance and the 20 year+ treasury bond ETF TLT acting a little 'bottomish' with a possible inverse head and shoulders with attendant RSI divergence. Gold and bond moving higher here is a cause for concern. Some profit taking before the real heart of earnings season after a historic 40% run in less than four months seems reasonable and relevant to our shorter-term managed model Active Opps. In the bigger, longer-time frame portfolios we managed, this possible pullback is noise and not something to be bothered with. I believe we're still in a secular AI-driven technology bull market that should be significantly higher one year from now. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above . DISCLOSURES: Gordon owns GOOGL, NOW, TSLA personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
