Mobile Payment Systems

Big Tech earnings have been strong, but Apple is about to answer the thousand-dollar question

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While the stock market reactions may not prove it, Big Tech is four-for-four so far this earnings reporting season.

GOOGL,
-0.09%,
Amazon.com Inc.
AMZN,
+6.83%,
Meta Platforms Inc.
META,
+2.91%
and Microsoft Corp.
MSFT,
+0.59%
all beat earnings and revenue expectations for the latest quarter, showing, among other things that the advertising market was healthy in the latest quarter and that software spending is holding up.

But one more major test looms in the week ahead. Apple Inc.
AAPL,
+0.80%
is due to deliver September-quarter results on Thursday and those earnings will answer a key question: Are consumers still so willing to purchase thousand-dollar iPhones in the current economy?

Results from other companies in recent weeks have painted a mixed picture of consumer spending. Visa Inc.
V,
-0.87%,
Mastercard Inc.
MA,
-0.14%
and American Express Co.
AXP,
-1.42%
say that spending remains resilient, but there are also signs that cracks are starting to form in categories deemed non-essential. Just look at Align Technology Inc.
ALGN,
+0.20%,
the maker of Invisalign orthodontic aligners, which saw its stock plunge last week after noting that people seem to be putting off dental and orthodontic visits.

Read: Invisalign maker’s stock craters after soft earnings, but analysts still say it’s a buy

Granted, some might say that iPhones are glorified necessities these days for Apple fans, even with their high price tags. But Apple conducted an effective price increase on its iPhone 15 Pro model when it rolled out its new phones in September, all while delivering a mostly incremental suite of feature upgrades across all its latest models. Will the new phones prove enticing enough in a period of stretched budgets?

Just judging by S&P 500
SPX
results so far in the aggregate, the odds would seem to be in Apple’s favor for a beat this quarter. About half of index components have already reported, and 78% have posted earnings upside, while 62% have surprised positively on the top line, according to FactSet.

Revenue will be the key item for Apple, as consensus expectations call for a small decline on the metric, which would mark the fourth consecutive year-over-year drop. It’s also worth noting that companies on the whole haven’t been topping revenue estimates by their usual margin. S&P 500 components in aggregate have reported revenue 0.8% above expectations, which compares with a five-year average of 2.0%, FactSet Senior Earnings Analyst John Butters wrote in a recent report.

Apple’s report could also highlight the impact of currency on corporate results, as the company generates more than half of its revenue internationally.

“Given the stronger U.S. dollar in recent months, are S&P 500 companies with more international revenue exposure reporting lower (year-over-year) earnings and revenues for Q3 compared to S&P 500 companies with more domestic revenue exposure?” Butters asked. “The answer is yes.”

This week in earnings

Many U.S. investors in financial-technology companies likely hadn’t heard of European payments player Worldline SA
WLN,
+9.06%
before last week, but a warning from the French company about deteriorating conditions in Europe helped send shares of PayPal Holdings Inc.
PYPL,
-2.63%
and Block Inc.
SQ,
-3.98%
sharply lower Wednesday, in a selloff one analyst deemed an overreaction. Those companies will look to reassure Wall Street about the health of their businesses with their own reports this week. Plus, while not a payments name, SoFi Technologies Inc.
SOFI,
-0.43%
will provide another read on the fintech sector. Investors will be watching to see how the end of the student-loan moratorium impacted student lending volumes.

The week ahead will also shed light on how consumers’ dining preferences have evolved in the current economy. Starbucks Corp.
SBUX,
-0.70%,
Dine Brands Global Inc.
DIN,
-0.12%,
Cheesecake Factory Inc.
CAKE,
-0.47%
and Sweetgreen Inc.
SG,
+0.59%
are among names on the docket. Plus, amid concerns about the impact of GLP-1 drugs such as Ozempic and Wegovy on eating habits, Kraft Heinz Co.’s management will be in the spotlight.

Don’t miss: What exactly are patients taking new weight-loss drugs eating and what are they avoiding? Bernstein asked them.

The call to put on your calendar

You can’t spell Advanced Micro Devices without AI (sort of): Nvidia Corp.
NVDA,
+0.43%
has been ruling the chip world this year thanks to its dominance with the sort of hardware needed to power the corporate AI fervor. Investors will be watching Tuesday afternoon to see how quickly Advanced Micro Devices Inc.’s
AMD,
+2.95%
own AI story is coming together. “The AMD narrative feels all about their data center (and, particularly, their AI story) right now,” Bernstein analyst Stacy Rasgon wrote in a note to clients. “In the near term the achievability of their 2H data-center growth (guided to 50% half-over-half) will be the question.” Rasgon expects AMD to discuss recent customer wins for its MI300X chip, though he thinks it will take time for the company to see “real volume.”

The number to watch

PayPal transaction margins: Shares of the one-time investor darling are trading at their lowest levels since May 2017, and the latest source of anguish for Wall Street is the company’s transaction margins. PayPal’s lower-margin unbranded checkout business has been growing more quickly than its higher-margin branded checkout product, a trend that’s been weighing on overall transaction margins. Barclays analyst Ramsey El-Assal expects the third quarter to mark a bottom on the metric before trends stabilize in the fourth quarter. “We do not believe the stock is crowded on the long or short side into earnings, as investors lack conviction regarding the magnitude of transaction margin headwinds in Q3,” he wrote in a recent preview. “In any case, we view Q3 as a potential clearing event.” PayPal posts results Wednesday afternoon.

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October 29, 2023

These 20 stocks in the S&P 500 are expected to soar after rising interest rates have pushed down valuations

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Two things investors can be sure about: Nothing lasts forever and the stock market always overreacts. The spiking of yields on long-term U.S. Treasury securities has been breathtaking, and it has led to remarkable declines for some sectors and possible bargains for contrarian investors who can commit for the long term.

First we will show how the sectors of the S&P 500

have performed. Then we will look at price-to-earnings valuations for the sectors and compare them to long-term averages. Then we will screen the entire index for companies trading below their long-term forward P/E valuation averages and narrow the list to companies most favored by analysts.

Here are total returns, with dividends reinvested, for the 11 sectors of the S&P 500, with broad indexes below. The sectors are sorted by ascending total returns this year through Monday.

Sector or index	2023 return	2022 return	Return since end of 2021	1 week return	1 month return
Utilities	-18.4%	1.6%	-17.2%	-11.1%	-9.6%
Real Estate	-7.1%	-26.1%	-31.4%	-3.0%	-8.8%
Consumer Staples	-5.4%	-0.6%	-6.0%	-2.2%	-4.4%
Healthcare	-4.2%	-2.0%	-6.1%	-1.7%	-3.3%
Financials	-2.5%	-10.5%	-12.7%	-2.5%	-4.7%
Materials	1.3%	-12.3%	-11.2%	-1.9%	-7.0%
Industrials	3.5%	-5.5%	-2.1%	-1.8%	-7.3%
Energy	4.0%	65.7%	72.4%	-1.9%	-1.4%
Consumer Discretionary	27.0%	-37.0%	-20.0%	-0.6%	-5.2%
Information Technology	36.5%	-28.2%	-2.0%	0.8%	-5.9%
Communication Services	42.5%	-39.9%	-14.3%	1.1%	-1.3%

S&P 500	13.1%	-18.1%	-7.4%	-1.1%	-4.9%
DJ Industrial Average	2.5%	-6.9%	-4.5%	-1.7%	-4.0%
Nasdaq Composite Index COMP	28.0%	-32.5%	-13.7%	0.3%	-5.1%
Nasdaq-100 Index	36.5%	-32.4%	-7.7%	0.5%	-4.2%
Source: FactSet

Returns for 2022 are also included, along with those since the end of 2021. Last year’s weakest sector, communications services, has been this year’s strongest performer. This sector includes Alphabet Inc.
GOOGL
and Meta Platforms Inc.
META,
which have returned 52% and 155% this year, respectively, but are still down since the end of 2021. To the right are returns for the past week and month through Monday.

On Monday, the S&P 500 Utilities sector had its worst one-day performance since 2020, with a 4.7% decline. Investors were reacting to the jump in long-term interest rates.

Here is a link to the U.S. Treasury Department’s summary of the daily yield curve across maturities for Treasury securities.

The yield on 10-year U.S. Treasury notes

jumped 10 basis points in only one day to 4.69% on Monday. A month earlier the 10-year yield was only 4.27%. Also on Monday, the yield on 20-year Treasury bonds

rose to 5.00% from 4.92% on Friday. It was up from 4.56% a month earlier.

Market Extra: Bond investors feel the heat as popular fixed-income ETF suffers lowest close since 2007

The Treasury yield curve is still inverted, with 3-month T-bills

yielding 5.62% on Monday, but that was up only slightly from a month earlier. An inverted yield curve has traditionally signaled that bond investors expect a recession within a year and a lowering of interest rates by the Federal Reserve. Demand for bonds pushes their prices down. But the reverse has happened over recent days, with the selling of longer-term Treasury securities pushing yields up rapidly.

Another way to illustrate the phenomenon is to look at how the Federal Reserve has shifted the U.S. money supply. Odeon Capital analyst Dick Bove wrote in a note to clients on Friday that “the Federal Reserve has not deviated from its policy to defeat inflation by tightening monetary policy,” as it has shrunk its balance sheet (mostly Treasury securities) to $8.1 trillion from $9 trillion in March 2022. He added: “The M2 money supply was $21.8 trillion in March 2022; today it is $20.8 trillion. You cannot get tighter than these numbers indicate.”

Then on Tuesday, Bove illustrated the Fed’s tightening and the movement of the 10-year yield with two charts:

Odeon Capital Group, Bloomberg

Bove said he believes the bond market has gotten it wrong, with the inverted yield curve reflecting expectations of rate cuts next year. If he is correct, investors can expect longer-term yields to keep shooting up and a normalization of the yield curve.

This has set up a brutal environment for utility stocks, which are typically desired by investors who are seeking dividend income. In a market in which you can receive a yield of 5.5% with little risk over the short term, and in which you can lock in a long-term yield of about 5%, why take a risk in the stock market? And if you believe that the core inflation rate of 3.7% makes a 5% yield seem paltry, keep in mind that not all investors think the same way. Many worry less about the inflation rate because large components of official inflation calculations, such as home prices and car prices, don’t affect everyone every year.

We cannot know when this current selloff of longer-term bonds will end, or how much of an effect it will have on the stock market. But sharp declines in the stock market can set up attractive price points for investors looking to go in for the long haul.

Screening for lower valuations and high ratings

A combination of rising earnings estimates and price declines could shed light on potential buying opportunities, based on forward price-to-earnings ratios.

Let’s look at the sectors again, in the same order, this time to show their forward P/E ratios, based on weighted rolling 12-month consensus estimates for earnings per share among analysts polled by FactSet:

Sector or index	Current P/E to 5-year average	Current P/E to 10-year average	Current P/E to 15-year average	Forward P/E	5-year average P/E	10-year average P/E	15-year average P/E
Utilities	82%	86%	95%	14.99	18.30	17.40	15.82
Real Estate	76%	80%	81%	15.19	19.86	18.89	18.72
Consumer Staples	93%	96%	105%	18.61	19.92	19.30	17.64
Healthcare	103%	104%	115%	16.99	16.46	16.34	14.72
Financials	88%	92%	97%	12.90	14.65	14.08	13.26
Materials	100%	103%	111%	16.91	16.98	16.42	15.27
Industrials	88%	96%	105%	17.38	19.84	18.16	16.56
Energy	106%	63%	73%	11.78	11.17	18.80	16.23
Consumer Discretionary	79%	95%	109%	24.09	30.41	25.39	22.10
Information Technology	109%	130%	146%	24.20	22.17	18.55	16.54
Communication Services	86%	86%	94%	16.41	19.09	19.00	17.43

S&P 500	94%	101%	112%	17.94	19.01	17.76	16.04
DJ Industrial Average	93%	98%	107%	16.25	17.49	16.54	15.17
Nasdaq Composite Index	92%	102%	102%	24.62	26.71	24.18	24.18
Nasdaq-100 Index	97%	110%	126%	24.40	25.23	22.14	19.43

There is a limit to how many columns we can show in the table. The S&P 500’s forward P/E ratio is now 17.94, compared with 16.79 at the end of 2022 and 21.53 at the end of 2021. The benchmark index’s P/E is above its 10- and 15-year average levels but below the five-year average.

If we compare the current sector P/E numbers to 5-, 10- and 15-year averages, we can see that the current levels are below all three averages for four sectors: utilities, real estate, financials and communications services. The first three face obvious difficulties as they adjust to the rising-rate environment, while the real-estate sector reels from continuing low usage rates for office buildings, from the change in behavior brought about by the COVID-19 pandemic.

Your own opinions, along with the pricing for some sectors, might drive some investment choices.

A broader screen of the S&P 500 might point to companies for you to research further.

We narrowed the S&P 500 as follows:

Current forward P/E below 5-, 10- and 15-year average valuations. For stocks with negative earnings-per-share estimates for the next 12 months, there is no forward P/E ratio so they were excluded. For stocks listed for less than 15 years, we required at least a 5-year average P/E for comparison. This brought the list down to 138 companies.
“Buy” or equivalent ratings from at least two-thirds of analysts: 41 companies.

Here are the 20 companies that passed the screen, for which analysts’ price targets imply the highest upside potential over the next 12 months.

There is too much data for one table, so first we will show the P/E information:

Company	Ticker	Current P/E to 5-year average	Current P/E to 10-year average	Current P/E to 15-year average
SolarEdge Technologies Inc.	SEDG	89%	N/A	N/A
AES Corp.	AES	66%	75%	90%
Insulet Corp.	PODD	18%	N/A	N/A
United Airlines Holdings Inc.	UAL	42%	50%	N/A
Alaska Air Group Inc.	ALK	51%	57%	N/A
Tapestry Inc.	TPR	39%	49%	70%
Albemarle Corp.	ALB	39%	50%	73%
Delta Air Lines Inc.	DAL	60%	63%	21%
Alexandria Real Estate Equities Inc.	ARE	59%	68%	N/A
Las Vegas Sands Corp.	LVS	96%	78%	53%
Paycom Software Inc.	PAYC	61%	N/A	N/A
PayPal Holdings Inc.	PYPL	33%	N/A	N/A
SBA Communications Corp. Class A	SBAC	27%	N/A	N/A
Advanced Micro Devices Inc.	AMD	58%	39%	N/A
LKQ Corp.	LKQ	92%	44%	78%
Charles Schwab Corp.	SCHW	75%	54%	73%
PulteGroup Inc.	PHM	94%	47%	N/A
Lamb Weston Holdings Inc.	LW	71%	N/A	N/A
News Corp Class A	NWSA	93%	73%	N/A
CVS Health Corp.	CVS	75%	61%	67%
Source: FactSet

Click on the tickers for more about each company or index.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

News Corp
NWSA
is on the list. The company owns Dow Jones, which in turn owns MarketWatch.

Here’s the list again, with ratings and consensus price-target information:

Company	Ticker	Share “buy” ratings	Oct. 2 price	Consensus price target	Implied 12-month upside potential
SolarEdge Technologies Inc.	SEDG	74%	$122.56	$268.77	119%
AES Corp.	AES	79%	$14.16	$25.60	81%
Insulet Corp.	PODD	68%	$165.04	$279.00	69%
United Airlines Holdings Inc.	UAL	71%	$41.62	$69.52	67%
Alaska Air Group Inc.	ALK	87%	$36.83	$61.31	66%
Tapestry Inc.	TPR	75%	$28.58	$46.21	62%
Albemarle Corp.	ALB	81%	$162.41	$259.95	60%
Delta Air Lines Inc.	DAL	95%	$36.45	$58.11	59%
Alexandria Real Estate Equities Inc.	ARE	100%	$98.18	$149.45	52%
Las Vegas Sands Corp.	LVS	72%	$45.70	$68.15	49%
Paycom Software Inc.	PAYC	77%	$260.04	$384.89	48%
PayPal Holdings Inc.	PYPL	69%	$58.56	$86.38	48%
SBA Communications Corp. Class A	SBAC	68%	$198.24	$276.69	40%
Advanced Micro Devices Inc.	AMD	74%	$103.27	$143.07	39%
LKQ Corp.	LKQ	82%	$49.13	$67.13	37%
Charles Schwab Corp.	SCHW	77%	$53.55	$72.67	36%
PulteGroup Inc.	PHM	81%	$73.22	$98.60	35%
Lamb Weston Holdings Inc.	LW	100%	$92.23	$123.50	34%
News Corp Class A	NWSA	78%	$20.00	$26.42	32%
CVS Health Corp.	CVS	77%	$69.69	$90.88	30%
Source: FactSet

A year may actually be a short period for a long-term investor, but 12-month price targets are the norm for analysts working for brokerage companies.

Don’t miss: This fund shows that industry expertise can help you make a lot of money in the stock market

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October 3, 2023

PayPal Stock Can’t Catch a Break. A Big Investor Cut Its Stake.

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PayPal Stock Can’t Catch a Break. A Big Investor Cut Its Stake.

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August 17, 2023

PayPal’s stock falls as earnings beat, but a margin metric misses

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PayPal Holdings Inc. edged above expectations with its quarterly revenue and earnings outlook Wednesday, though the company fell short of a margin metric and disappointed Wall Street with its take rate.

Shares of PayPal
PYPL,
-3.08%
fell 7% in after-hours trading after the payment-technology company reported an adjusted operating margin of 21.4% for the second quarter, below the 22% outlook that the company had given previously.

In its investor deck, the company attributed the shortfall to its credit portfolio, where PayPal generated less revenue than it had anticipated and increased its loss provisions.

“There’s no other items that really contributed to that miss,” Acting Chief Financial Officer Gabrielle Rabinovitch said on the earnings call, noting that PayPal specifically saw pressure related to business loans.

Don’t miss: Mastercard earnings bring latest signal of healthy spending

Analysts also flagged concerns about PayPal’s transaction take rate, which came in at 1.74%, while consensus expectations were for about 1.9%.

PayPal’s revenue for the second quarter increased to $7.29 billion from $6.81 billion, whereas analysts were modeling $7.27 billion. But Wolfe Research analyst Darrin Peller noted that while revenue was up 7%, gross profit increased only 1%.

“We believe investor focus will remain on gross-profit growth dynamics given the mismatch [between] revenue and gross-profit growth,” he wrote in a note to clients.

Rabinovitch said on the earnings call that PayPal expects continued pressure on transaction-margin performance in the third quarter before conditions improve in the fourth quarter. Over the long haul, she anticipates that PayPal’s transaction margins “will certainly be benefited” by factors such as accelerations in branded checkout and e-commerce growth, improved cross-border trends, and new value-added services.

The payments company reported second-quarter net income of $1.03 billion, or 92 cents a share, whereas it recorded a net loss of $341 million, or 29 cents a share, in the year-earlier period. On an adjusted basis, PayPal earned $1.16 a share, up from 93 cents a share a year prior, while the FactSet consensus was for $1.15 a share.

PayPal logged $376.5 billion in total payment volume for the period, while analysts had been expecting $368.9 billion.

Chief Executive Dan Schulman told MarketWatch that PayPal was seeing encouraging spending trends throughout the business and in the industry, as e-commerce growth picks up, discretionary purchasing improves and consumers start to rebalance their preferences once again after dramatically weighting their dollars more toward travel and services when the economy initially reopened.

A better balance of spending on goods versus services helps drives e-commerce growth, and “any uptick in e-commerce is going to accelerate our growth as well,” Schulman said.

Amid concerns from some corners of Wall Street about Apple Pay’s advancement, Schulman was confident in the state of PayPal’s branded checkout business.

“In our view we would expect that our branded checkout would be at or above the growth of e-commerce levels going forward,” he said.

PayPal still expects to drive at least 100 basis points of operating-margin expansion for the full year, and it also continues to anticipate about $4.95 in adjusted EPS for 2023. PayPal expects second-half revenue to at least match its first-quarter revenue total.

For the third quarter, PayPal expects $1.22 to $1.24 in adjusted earnings per share, along with revenue of about $7.4 billion. The FactSet consensus was for $1.21 in adjusted EPS and $7.3 billion in revenue.

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August 2, 2023

Alibaba, Dice, Arcellx, Avis, PayPal, and More Stock Market Movers

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This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

https://www.barrons.com/articles/stock-market-movers-fb3791aa

Updated June 20, 2023 9:56 am ET / Original June 20, 2023 4:49 am ET

Order Reprints
Print Article

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June 20, 2023

Chase working to resolve issue with accidental double payments made through Zelle

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A spokesperson for JPMorgan Chase & Co. on Friday has confirmed statements on social media that some customers are seeing duplicate transactions and fees on their checking accounts.

“We’re sorry,” the spokesperson said in an email to MarketWatch. “We’re working to resolve the issue and will automatically reverse any duplicates and adjust any related fees.”

JPMorgan Chase
JPM,
+2.10%
customers on Twitter and other social-media outlets said payments made through Zelle were showing up twice.

“PSA!!!,” said Twitter user @haunteraIIA. “Anyone waking up to duplicate zelle charges from chase, my call just went through and was told the duplicate charge should be credited within 24hours. they’re having issues with this today. i was on hold for an hour, so just in case anyone else wakes up freaked out lol.”

Zelle is jointly owned by six banks: JPMorgan, Truist Financial Corp.
TFC,
+3.62%,
Capital One
COF,
+4.00%,
U.S. Bancorp
USB,
+4.00%,
PNC Financial Services Group Inc.
PNC,
+3.21%
and Wells Fargo & Co.
WFC,
+2.95%.

A spokesperson from Chase clarified that the problems are confined to its customers.

Also Read: Banks explore reimbursing customers who send money to scam Zelle accounts

Weston Blasi contributed to this report.

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June 2, 2023

PayPal to lay off 7% of employees as part of cost-cutting push

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PayPal Holdings Inc. plans to lay off about 7% of its staff as it continues with broader efforts to reduce costs.

Chief Executive Dan Schulman announced the layoffs, which will affect about 2,000 PayPal PYPL employees, in an email to the staff Tuesday afternoon.

“While we have made substantial progress in right-sizing our cost structure,…

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January 31, 2023

These 20 stocks were the biggest losers of 2022

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This has been the year of reckoning for Big Tech stocks — even those of companies that have continued to grow sales by double digits.

Below is a list of the 20 stocks in the S&P 500
SPX,
-0.72%
that have declined the most in 2022.

First, here’s how the 11 sectors of the benchmark index have performed this year:

S&P 500 sector	2022 price change	Forward P/E	Forward P/E as of Dec. 31, 2021
Energy	57.8%	9.6	11.1
Utilities	-0.5%	18.8	20.4
Consumer Staples	-2.7%	20.9	21.8
Healthcare	-3.2%	17.4	17.2
Industrials	-6.7%	18.0	20.8
Financials	-12.1%	11.7	14.6
Materials	-13.4%	15.6	16.6
Real Estate	-27.7%	16.2	24.2
Information Technology	-28.8%	19.6	28.1
Consumer Discretionary	-37.4%	20.7	33.2
Communication Services	-40.4%	14.0	20.8
S&P 500	-19.2%	16.5	21.4
Source: FactSet

The energy sector has been the only one to show a gain in 2022, and it has been a whopper, even as West Texas Intermediate crude oil
CL.1,
+0.41%
has given up most of its gains from earlier in the year. Here’s why investors are still confident in the supply/demand setup for oil and energy stocks.

Looking at the worst-performing sectors, you might wonder why the consumer discretionary and communication services sectors have fared worse than information-technology, the core tech sector. One reason is that S&P Dow Jones Indices can surprise investors with its sector choices. The consumer discretionary sector includes Tesla Inc.
TSLA,
+0.70%
and Amazon.com Inc.
AMZN,
-1.17%,
which has fallen nearly 50% this year. The communications sector includes Meta Platforms Inc.
META,
-1.21%,
along with Match Group Inc.
MTCH,
+0.50%,
which is down 69% for 2022, and Netflix Inc.
NFLX,
-0.44%,
which is down 52% this year.

There have been many reasons easy to cite for Big Tech’s decline, such as a questionable change in strategy for Facebook’s holding company, Meta, as CEO Mark Zuckerberg has put so much of the company’s resources into developing a new world that most people don’t wish to enter, at least yet. Meta’s shares were down 64% for 2022 through Dec. 29.

You might also blame the Twitter-related antics and sales of Tesla shares by CEO Elon Musk for the 65% decline in the electric-vehicle maker’s stock this year. But Tesla had a forward price-to-earnings ratio of 120.3 at the end of 2021, while the S&P 500
SPX,
-0.72%
traded for 21.4 times its weighted forward earnings estimate, according to FactSet. Those P/E ratios have now declined to 21.7 and 16.4, respectively. So Tesla no longer appears to be a very expensive stock, especially for a company that increased its vehicle deliveries by 42% in the third quarter from a year earlier.

Analysts polled by FactSet expect Tesla’s stock to double during 2023. It nearly made this list of 20 EV stocks expected to rebound the most in 2023.

The worst-performing S&P 500 stocks of 2022

Here are the 20 stocks in the S&P 500 that fell the most for 2022 through the close on Dec. 29.

Company	Ticker	2022 price change	Forward P/E	Forward P/E as of Dec. 32, 2021
Generac Holdings Inc.	GNRC, -0.84%	-71.4%	13.7	30.2
Match Group Inc.	MTCH, +0.50%	-68.9%	20.1	48.5
Align Technology Inc.	ALGN, -0.52%	-67.7%	27.4	48.7
Tesla Inc.	TSLA, +0.70%	-65.4%	21.7	120.3
SVB Financial Group	SIVB, -0.38%	-65.4%	10.8	23.0
Catalent Inc.	CTLT, -0.40%	-64.6%	13.0	32.5
Meta Platforms Inc. Class A	META, -1.21%	-64.2%	14.7	23.5
Signature Bank	SBNY, -0.34%	-64.1%	6.2	18.6
PayPal Holdings Inc.	PYPL, -0.01%	-62.6%	14.8	36.0
V.F. Corp.	VFC, +0.15%	-62.5%	11.9	20.4
Warner Bros. Discovery Inc. Series A	WBD, -1.64%	-59.9%	N/A	7.5
Carnival Corp.	CCL, -0.23%	-59.8%	38.1	N/A
Stanley Black & Decker Inc.	SWK, -0.42%	-59.8%	17.0	15.9
Lumen Technologies Inc.	LUMN, -1.79%	-57.8%	7.7	7.8
Zebra Technologies Corp. Class A	ZBRA, -0.44%	-56.7%	14.5	30.1
Dish Network Corp. Class A	DISH, -0.96%	-56.5%	8.6	10.9
Caesars Entertainment Inc.	CZR, +0.24%	-55.7%	51.4	144.5
Lincoln National Corp.	LNC, +0.26%	-55.1%	3.4	6.2
Advanced Micro Devices Inc.	AMD, -0.97%	-55.0%	17.8	43.1
Seagate Technology Holdings PLC	STX, -0.55%	-53.1%	15.0	12.4
Source: FactSet

Click on the tickers for more information about the companies.

Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Another way of measuring the biggest stock-market losers of 2022

It is one thing to have a large decline based on the share price, but that doesn’t tell the entire story. How much of a decline have investors seen in the holdings of their shares during the year? The S&P 500’s total market capitalization declined to $31.66 trillion as of Dec. 28 (the most recent figure available) from $40.36 trillion at the end of 2021, according to FactSet.

Shareholders of these companies have suffered the largest declines in market cap during 2022.

Company	Ticker	2022 market capitalization change ($bil)	2022 price change
Apple Inc.	AAPL, -0.63%	-$851	-27.0%
Amazon.com Inc.	AMZN, -1.17%	-$832	-49.5%
Microsoft Corp.	MSFT, -1.15%	-$728	-28.3%
Tesla Inc.	TSLA, +0.70%	-$677	-65.4%
Meta Platforms Inc. Class A	META, -1.21%	-$465	-64.2%
Nvidia Corp.	NVDA, -1.37%	-$376	-50.3%
PayPal Holdings Inc.	PYPL, -0.01%	-$141	-62.6%
Netflix Inc.	NFLX, -0.44%	-$138	-51.7%
Walt Disney Co.	DIS, -1.62%	-$123	-43.7%
Salesforce Inc.	CRM, -0.96%	-$118	-47.8%
Source: FactSet

So there is your surprise for today: Apple is this year’s biggest stock-market loser.

Don’t miss: Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices

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December 30, 2022

This company has wiped out more investor wealth in 2022 than Tesla

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Elon Musk has been trying this week to defend Tesla’s abysmal stock performance in 2022. The electric vehicle giant has seen its stock plummet by 61% this year, making it the 11th-worst performing stock in the S&P 500 in 2022.

“As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop,” Musk tweeted.

You might expect that Tesla’s stock drop has wiped out more investor wealth than any other stock in the world this year. But you would be wrong.

If we look at declines in market capitalization — the value of companies’ common-shares outstanding — Tesla
TSLA,
-1.76%
has been the fourth worst-performing stock in the benchmark S&P 500 this year, as of 1 p.m. ET on Dec. 21:

Company	Ticker	2022 market cap change ($bil)	Intraday market cap on Dec. 21 ($bil)	Dec. 31, 2021 market cap ($bil)	2022 price change
Amazon.com Inc.	AMZN, +1.74%	-$805	$886	$1,691	-48%
Apple Inc.	AAPL, -0.28%	-$753	$2,160	$2,913	-24%
Microsoft Corp.	MSFT, +0.23%	-$700	$1,825	$2,525	-27%
Tesla Inc.	TSLA, -1.76%	-$622	$439	$1,061	-61%
Meta Platforms Inc. Class A	META, +0.79%	-$466	$318	$784	-64%
Nvidia Corp.	NVDA, -0.87%	-$329	$406	$735	-44%
PayPal Holdings Inc.	PYPL, +0.67%	-$143	$79	$222	-63%
Netflix Inc.	NFLX, -0.94%	-$134	$133	$267	-51%
Walt Disney Co.	DIS, +1.55%	-$122	$160	$282	-44%
Salesforce Inc.	CRM, +0.19%	-$119	$131	$250	-49%
Source: FactSet

On a percentage basis, all these stocks have performed worse than the full S&P 500, which has fallen 19%, excluding dividends.

Amazon.com Inc.
AMZN,
+1.74%
has erased more shareholder wealth than any other publicly traded company in 2022. In total, investors in Amazon have lost $804.6 billion this year. The stock is down 48% in 2022.

Apple Inc.
AAPL,
-0.28%
and Microsoft Corp.
MSFT,
+0.23%
have also suffered larger market-cap declines than Tesla, by virtue of their sheer size.

The companies have different fiscal and annual period ends, but if we look at data for the past three reported quarters and compare to the same period a year earlier, here’s how the four stack up:

Company	Ticker	Change in sales for three quarters from year-earlier period	Change in EPS for three quarters from year-earlier period
Amazon.com Inc.	AMZN, +1.74%	10%	N/A
Apple Inc.	AAPL, -0.28%	6%	2%
Microsoft Corp.	MSFT, +0.23%	14%	-2%
Tesla Inc.	TSLA, -1.76%	58%	169%
Source: FactSet

Amazon showed a net loss of $3 billion for the first three quarters of 2022 as the company neared the end of its extraordinary multiyear effort to build out its warehouse and fulfillment infrastructure. For the first three quarters of 2021, the company booked $19 billion in profits. When announcing Amazon’s third-quarter results CEO Andy Jassy said the company was working methodically toward “a stronger cost structure for the business moving forward.”

The incredible growth of Amazon’s cloud business has stalled and disappointed the expectations the company had nurtured on Wall Street. The Amazon Web Services business is facing increasing competition from the likes of Microsoft and its customers are pulling back. Meanwhile, retail sales have also come in weak going into the Christmas and holiday season.

Amazon’s stock has declined 22% since it closed at $110.96 on Oct. 27, right before it disappointed investors not only with its third-quarter results, but with its outlook: It expects to break even during the holiday quarter. Analysts polled by FactSet had previously expected a profit of more than $5 billion.

Tesla stands in contrast to Amazon, as you can see on the table above. Its sales grew by 58% during the first three quarters of 2022 from the year-earlier period and its earnings per share rose nearly threefold.

This has been a year of significant declines for shares of giant tech-oriented companies, especially those that had traded at lofty price-to-earnings valuations — that group includes Amazon and Tesla. In fact, these companies have given up all their pandemic era gains int he stock market.

But with Tesla’s results so outstanding through the first three quarters of 2022, it raises the question: How much of the drop in the electric car makers share price was tied to Musk’s actions as CEO of Twitter, which he acquired on Oct. 27 after a monthslong saga? And how much of a relief rally, if any, might there be for Tesla if Musk, as expected, steps down as Twitter CEO?

How about some bottom-feeding?

Here’s the same list of 10 stocks in the S&P 500 that have seen the largest declines in market cap this year, with a summary of analysts’ ratings, consensus price targets and declines in their forward price-to-earnings ratios:

Company	Ticker	Share “buy” ratings	Dec. 21 closing price	Cons. price target	Implied 12-month upside potential	Forward P/E as of Dec. 20	Forward P/E as of Dec. 31, 2021
Amazon.com Inc.	AMZN, +1.74%	91%	$85.19	$134.85	58%	49.3	64.9
Apple Inc.	AAPL, -0.28%	74%	$132.30	$173.44	31%	21.4	30.2
Microsoft Corp.	MSFT, +0.23%	91%	$241.80	$293.06	21%	23.7	34.0
Tesla Inc.	TSLA, -1.76%	63%	$137.80	$272.64	98%	24.6	120.3
Meta Platforms Inc. Class A	META, +0.79%	63%	$117.09	$145.45	24%	14.5	23.5
Nvidia Corp.	NVDA, -0.87%	68%	$160.85	$195.72	22%	39.2	58.0
PayPal Holdings Inc.	PYPL, +0.67%	71%	$68.76	$104.32	52%	14.5	36.0
Netflix Inc.	NFLX, -0.94%	47%	$288.19	$302.89	5%	28.4	45.6
Walt Disney Co.	DIS, +1.55%	82%	$87.02	$119.60	37%	19.8	34.2
Salesforce Inc.	CRM, +0.19%	78%	$128.45	$195.18	52%	23.4	53.5
Source: FactSet

A majority of analysts see a golden path ahead for 2023 for all of these stocks except for Netflix.

For more information about any of these companies, click the tickers.

Click here for a detailed guide to the wealth of information available for free on the MarketWatch quote page.

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December 24, 2022

Tag: Mobile Payment Systems

This week in earnings

The call to put on your calendar

The number to watch

Screening for lower valuations and high ratings

The worst-performing S&P 500 stocks of 2022

Another way of measuring the biggest stock-market losers of 2022

How about some bottom-feeding?