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‘What a joke’: Gavin Newsom's team slams Ron DeSantis’ debate proposal 2023-08-05 - It looks like the possibility of a debate between California's Gavin Newsom and Florida's Ron DeSantis — two governors on the opposite ends of the political spectrum — may still be a ways off. Newsom's team on Saturday slammed DeSantis' proposed rules for their debate on Fox News. “What a joke," Newsom spokesman Nathan Click said in a statement in response to the proposal that DeSantis' team sent Fox News host Sean Hannity a day earlier. "Desantis’ counterproposal is littered with crutches to hide his insecurity and ineptitude — swapping opening statements with a hype video, cutting down the time he needs to be on stage, adding cheat notes and a cheering section," Click said. "Ron should be able to stand on his own two feet. It’s no wonder Trump is kicking his ass.” DeSantis' team did not immediately respond to a request for comment. DeSantis, who is running for the GOP presidential nomination, told Hannity on Wednesday that he would be willing to debate Newsom, a Democratic governor with whom he has frequently clashed on issues like guns, abortion, education and immigration. “Absolutely. I’m game. Let’s get it done. Just tell me when and where. We’ll do it,” DeSantis said, agreeing to the debate idea that initially came about in June, when Hannity asked Newsom if he'd debate DeSantis. Newsom sent a formal debate offer letter to Hannity in July that included rules such as that the debate would be moderated by Hannity, be broadcast live and 90 minutes in length, and that both governors would not use notes. Newsom also proposed Nevada, Georgia and North Carolina as potential locations. In a letter to Hannity, dated Friday, DeSantis' team offered its own rules for the debate, which diverged from some proposed by Newsom. Some of the differences: DeSantis suggested four dates from between Sept. 19 to Nov. 8, while Newsom proposed two dates in November. DeSantis wanted a live audience with a 50-50 split, while Newsom said "no live audience." DeSantis does not want opening remarks, while Newsom would like both participants to get four minutes. DeSantis proposed that they each submit a two-minute-long video that must be approved by Fox News before it is played at the top of the debate. Hannity on Wednesday framed the event as a “policy-based debate” between the heads of a red state and blue state, but DeSantis has said that the debate will be far more than that. “This is the debate for the future of our country," he told Hannity.
Jamie Foxx apologizes after 'fake friends' Instagram post is accused of being antisemitic 2023-08-05 - Actor Jamie Foxx apologized to the Jewish community Saturday after a cryptic Instagram post about "fake friends" was accused of promoting antisemitism. "I want to apologize to the Jewish community and everyone who was offended by my post. I now know my choice of words have caused offense and I'm sorry," he wrote. "That was never my intent." In a since-deleted post, Foxx wrote: "THEY KILLED THIS DUDE NAME JESUS...WHAT DO YOU THINK THEY'LL DO TO YOU???! #fakefriends #fakelove." It's not clear what prompted the post. A Wider Frame, a newsletter that says it aims to provide "a better overall understanding and scope of Jewish world news," shared Foxx's original post and called it "horrifically antisemitic." Actor Jennifer Aniston then re-posted A Wider Frame after she came under fire for seemingly liking Foxx's post. "This really makes me sick," Aniston wrote in an Instagram Story. "I did not 'like' this post on purpose or by accident. And more importantly, I want to be clear to my friends and anyone hurt by this showing up in their feed - I do NOT support any type of antisemitism. And I truly don't tolerate HATE of any kind. Period." Foxx, who has been recovering following an undisclosed medical emergency, clarified that his post was directed at a "fake friend" that betrayed him. "That's what I meant by 'they' not anything more," he wrote. "I only have love in my heart for everyone. I love and support the Jewish community. My deepest apologies to anyone who was offended." Many people came to Foxx's defense, with some saying that it was referencing a phrase commonly used by the Black community. "Any black person growing up in the south will tell you that Jamie Foxx wasn’t referring to Jewish people. 'They killed/lied on/talked about Jesus' simply means 'If Jesus can be betrayed, so can you.' He genuinely meant fake friends/fake people. So quick to reach, it’s ridiculous," one user tweeted. "Jamie Foxx is a decent person so of course he apologized for potentially offending folks. But it def got misconstrued in the most oblivious way possible, like was the 'fake friends' hashtag only visible for some folks??" another tweeted. "I read Jamie Foxx’s original post and just wondered what fake friends had done him wrong. That’s all," another tweet read.
Broadway actor who played Simba in 'The Lion King' dies at 47 2023-08-05 - Broadway Actor Clifton Oliver, best known for playing Simba in ‘The Lion King," has died at 47. The actor died early Wednesday morning, according to his sister Roxy Hall. "His partner Richard, was singing to him the song Psalm 23 as he took his last breath this morning at 3:20 AM," Hall wrote in a Facebook post. "He had a gorgeous smile on his beautiful face!! He went twirling into the afterlife ready to make his grand appearance as the star of his homecoming celebration!" The circumstances around Oliver's death aren't clear, but he spent that last six weeks of his life in the hospital and in hospice care, according to Hall. The broadway show commemorated the actor on Instagram. "Today, our Pride joins in remembering the legacy of the late Clifton Oliver, who shared his talents and light with audiences across Broadway, Las Vegas, and our North American tour from 2000-2011," the post read. In honor of Oliver's legacy, the lights will be dimmed at the New Amsterdam Theatre in New York City on Tuesday at 5 p.m. Oliver was born in 1975 and is from Jacksonville, Florida, according to Playbill.com. He moved to New York City in 2010 to pursue his Broadway career. He is best known for his roles in "The Lion King" and "In the Heights," where he played the character Benny alongside Jordin Sparks, according to the outlet.
NASCAR suspends driver Noah Gragson for liking insensitive meme depicting face of George Floyd 2023-08-05 - BROOKLYN, Mich. — Driver Noah Gragson has been suspended indefinitely by NASCAR and Legacy Motor Club due to liking an insensitive meme with a photo of George Floyd’s face. “I am disappointed in myself for my lack of attention and actions on social media,” Gragson posted Saturday. “I understand the severity of this situation. I love and appreciate everyone. I try to treat everyone equally no matter who they are. I messed up plain and simple.” Floyd, who was Black, died in 2020 after a white police officer knelt on his neck for 9 1/2 minutes. His death sparked mass protests around the world and forced a national reckoning on racial injustice. Josh Berry will be in the No. 42 Chevrolet in Sunday’s race at Michigan International Speedway to replace Gragson. NASCAR said Gragson violated the member conduct of its rule book, without providing details. “His actions do not represent the values of our team,” Legacy Motor Club said in a statement. The 25-year-old Gragson, who is from Las Vegas, is in his first full season in the Cup series and is No. 33 in points.
Trial scheduled in lawsuit brought by former Donda Academy teachers who sued Ye for wrongful termination 2023-08-05 - A lawsuit involving two former Donda Academy teachers who sued Ye for what they said was wrongful termination from his now-shuttered private Christian school is scheduled for an April 2025 trial. Cecilia Hailey and Chekarey Byers brought the civil lawsuit against Ye, formally known as Kanye West, in April. The suit painted a bizarre picture of the Simi Valley school: students who were served only sushi for lunch and had to sit on the floor to eat, doors locked from the outside, and classes being held only on the first floor because the rapper was "afraid of stairs." Hailey and Byers, who are mother and daughter, also alleged in the lawsuit that they were victims of racial discrimination by the rapper and were fired in retaliation for reporting code violations. The women are Black. Ye as well as Hailey and Byers had sought a jury trial, according to a court filing on Friday. The other defendants in the suit, including Donda Academy, did not demand a jury trial. It is scheduled for April 9, 2025, at a Los Angeles courthouse, the filing states. Representatives for the rapper could not immediately be reached for comment on Saturday. Attorney Ron Zambrano, who is representing the women, said they are "looking forward to our day in court if this can’t be worked out in mediation with Ye and the other defendants acknowledging wrongdoing." "Through his attorneys, Ye has told the judge of his willingness to engage in good faith negotiations," he continued. "While we are hopeful this will resolve the matter with an admission to the allegations against him, we stand by everything in the complaint and aim to hold the defendants accountable for this reprehensible and illegal behavior, no matter their celebrity status." The Donda Academy in Simi Valley, Calif. Google Maps Zambrano previously said that the lawsuit showed that the rapper "is clearly as bad at running a school as he is at managing his own personal and professional life." Zambrano accused Ye of enabling an illegal and unsafe school environment "that also discriminated against the plaintiffs based on their race." The lawsuit described how forks and other utensils were barred from the school, students had to sit on the floor during lunch, were fed only sushi, and lunch and recess were held indoors at the same time. It alleged that no cleaning services or school nurses were employed, medications on campus either were unsecured or had expired, and that crossword puzzles were not allowed. There was to be no jewelry, no color or artwork on the walls, and students had to wear all black and dress only in clothing issued or designed by the rapper, according to the suit. Nike and Adidas were "forbidden," it said. Classes were held on the first floor because "he was reportedly afraid of stairs," the suit said. Byers said in a previous statement that she was disappointed and had considered working at the school a "huge honor and privilege." "I’m extremely sad about all of this," she said. "I’m a huge Kanye fan. His first album was the first I ever purchased." Byers said Ye's vision for the school looked "great on paper" but in reality, it was "pure chaos and mutiny." "It’s like a mental hospital being run by the patients," she said in her statement. A third former teacher, Timanii Meeks, also sued the rapper and school, alleging wrongful termination. Meeks said she had alerted administrators to exposed electrical wiring in the building and other safety hazards as well as issues with bullying, according to an amended complaint. She was allegedly told that the school was "working on the kinks." She alleged that a few parents had sat in on her class and complained that there were no books, textbooks or educational materials, the suit said. The students were eventually given printouts of online worksheets and workbooks, but she was reprimanded because of the complaints, according to the lawsuit. Meeks was later informed on Oct. 12 by the staffing agency that placed her at Donda Academy that the school did not want her to teach there, the suit stated. She said she was supposed to continue working at the school until at least the end of the year and no reason was given for her firing. She is being represented by the same employment law firm as Hailey and Byers. Donda Academy announced in October that it was closing amid fallout from antisemitic comments Ye made, however, records from California’s Education Department showed Saturday that the school is still active.
Palestinian attack leaves one Israeli patrol officer dead in Tel Aviv, shooter killed 2023-08-05 - JERUSALEM- A Tel Aviv municipal patrol officer has died, Israeli officials said on Saturday, after being shot by a Palestinian on a street in central Tel Aviv. The suspected shooter was then shot dead by another municipal patrol worker, Tel Aviv’s mayor Ron Huldai told Israel’s public broadcaster. A statement from the Israeli police said the shooter was a 27 year-old resident of the Palestinian town of Jenin in the occupied West Bank. The Palestinian militant group Hamas praised the attack but did not take responsibility. The shooting came a day after a Palestinian teen was killed in an attack by Israeli civilians on a Palestinian village in the West Bank. Washington has expressed concern over a growing number of attacks by Jewish settlers on Palestinian villages in the West Bank, where violence has worsened since last year with increased Israeli raids amid Palestinian street attacks on Israelis. Tel Aviv mayor Huldai said the municipal worker had approached the attacker after noticing something suspicious and was then fired at by the shooter. A second municipal worker then killed the shooter. “We are standing at a very sad incident,” Huldai said. “We are praying for the well-being of the injured.” In brief statement, Israeli Prime Minister Benjamin Netanyahu praised the actions of the municipal patrol officers. Despite the attack, tens of thousands protested in Tel Aviv, according to the Israeli public broadcaster, against the governing coalition’s planned judicial overhaul which would see the highest court stripped of much of its powers. Proponents of the legislation say it restores balance to the branches of government, while those against say it removes checks on government powers. Last month, the coalition passed legislation that removed the court’s power to strike down government actions based on the action being classified as “unreasonable.”
Suspect dead after allegedly shooting two Florida officers during traffic stop 2023-08-05 - A suspect who allegedly shot two Florida police officers during a traffic stop is dead, according to police. Officers with the Orlando Police Department stopped a car at around 11 p.m. on Friday because it was wanted in connection with a homicide in Miami, Orlando Police Chief Eric Smith said at a news briefing on Saturday. The suspect, identified by police as 28-year-old Daton Viel, shot both officers before carjacking another vehicle and fleeing the scene. A pursuit ensued. Orlando Police Chief Eric Smith speaks at a press conference, on Aug. 5, 2023. Orlando Police Department via Facebook Authorities eventually found Viel at a Holiday Inn in the 5900 block of Caravan Court, Smith said. Police evacuated the hotel and attempted to get Viel out of his room where he had barricaded himself. At around 8:58 a.m., Viel shot at SWAT officers multiple times, who returned fire, killing the suspect, according to Smith. Viel had an "extensive violent criminal history," Smith said. A second suspect was determined to not be involved in the shooting. Police are not looking for any additional suspects. The officers, who were not identified, are expected to make a full recovery. “This is a tragedy for our department any time you get officers shot, these officers are out here everyday protecting our community," Smith said. "They put their lives on the line everyday to keep us safe and for some piece of crap to do this to them because they don’t want to go back to prison is ridiculous, and we’re not going to put up with it." The investigation is ongoing, police said.
Joe Biden's 'Buy America' policy on infrastructure projects leads to factory jobs in Wisconsin 2023-08-05 - President Joe Biden speaks at Auburn Manufacturing Inc., in Auburn, Maine, Friday, July 28, 2023, before he signs an executive order to encourage companies to manufacture new inventions in the United States. (AP Photo/Susan Walsh) President Joe Biden speaks at Auburn Manufacturing Inc., in Auburn, Maine, Friday, July 28, 2023, before he signs an executive order to encourage companies to manufacture new inventions in the United States. (AP Photo/Susan Walsh) President Joe Biden speaks at Auburn Manufacturing Inc., in Auburn, Maine, Friday, July 28, 2023, before he signs an executive order to encourage companies to manufacture new inventions in the United States. (AP Photo/Susan Walsh) President Joe Biden speaks at Auburn Manufacturing Inc., in Auburn, Maine, Friday, July 28, 2023, before he signs an executive order to encourage companies to manufacture new inventions in the United States. (AP Photo/Susan Walsh) Efforts by the Biden administration have been helping create new factory jobs as part of a push to bring high-speed internet to the whole country WASHINGTON -- Efforts by the Biden administration have been helping create new factory jobs as part of a push to bring high-speed internet to the whole country -- jobs that coincidentally help to back up President Joe Biden's messaging for the 2024 elections. Vice President Kamala Harris announced on Thursday that up to 200 new manufacturing jobs would be coming to the swing state of Wisconsin. The workers at the Sanmina factory in Kenosha County are to make parts for Nokia that help to connect customers to broadband internet. Nokia's choice to move production to the U.S. came after an extended engagement with the Commerce Department over how to deliver on the “Buy America" rules in the government's $42.5 billion investment to provide universal internet services. “Whereas in the past, many of those jobs would have been created overseas, President Biden and I required that the materials and products used in these projects, from steel to electronics to fiber optic cable, must be made in America, by workers in America,” Harris said in her speech at the factory. The remarks were part of a broader effort by the administration to get voters to link job gains to specific actions taken by Biden, one of the foundations of his reelection effort amid continued public gloom about the economy because of the burst of high inflation that began during his presidency. Much of the effort to deliver on those promises has occurred out of the public view, but Nokia and government officials agreed to discuss how this particular project came together. “It was a labor of some length and passion,” said Brian Hendricks, vice president of policy and public affairs for Nokia Americas. “We spent almost a year working with the administration. They had to understand what the supply chain for broadband electrics actually is, understand how network deployments are done, and what would be feasible.” But there was also an “urgency” for Nokia's customers to know they could buy parts that were compliant with the “Buy America” provisions, since the 2021 infrastructure law established preferences for domestically-made supplies. Commerce Secretary Gina Raimondo, who appeared with Harris in Wisconsin, said the president was clear that she "wasn’t to be giving Buy America waivers easily.” She said the government needed to get into the weeds to know which products could have their supply chains brought into the U.S. and which parts would likely need to be foreign-made to ensure that projects could be completed on time. Nokia met with government officials on the project more than a dozen times. It was an educational process as data was exchanged regarding which products could be made in the U.S. “We challenged Nokia and they rose to the challenge," Raimondo said. “They engaged with us. We kept their feet to the fire.” Critics have said the preferences for American-made supplies would push up costs and cause delays. But Nokia executives said the costs of moving production to the U.S. were relatively small as the major expense for the internet infrastructure involves construction labor and fiber-optic cables. The choice of a factory in the swing state of Wisconsin was coincidental, as Nokia had a multi-decade relationship with Sanmina. But there are clear political spillovers to choosing Kenosha County, which then-President Donald Trump narrowly won by 3 points in 2020 after racial tensions broke out over a police shooting and later the shooting deaths of civil rights protesters by Kyle Rittenhouse. The Biden administration has focused on jobs and the benefits of greater broadband access in Wisconsin, which has 800,000 people who lack access to high-speed internet. Under Biden, factory jobs in the Kenosha area have climbed to a two-decade high, according to Labor Department figures. There are 63,700 manufacturing jobs in the area. That's about 700 jobs more than the 2019 peak during the presidency of Donald Trump, the Republican front-runner for 2024. Trump won election in 2016 by pledging to revive factory work and Biden is seeking reelection by offering his plan to deliver on that same promise. But even if the choice of Kenosha was a coincidence, it dovetails with the president's speeches saying that “Bidenomics” will restore the role of manufacturing in the middle class. And even if factory work no longer fully rebounds to its past highs, the administration sees signs that there are more factory jobs to come. Friday's jobs report showed that U.S. employers have added 125,000 manufacturing jobs over the past year. “I don’t know an American manufacturing company that is not right now rethinking its supply chain and realizing they need to work harder to diversify their supply chains — which means they have to make more in America,” Raimondo said. “I think there’s a lot more to come for places like Wisconsin.”
Turkmenistan Airlines suspends Moscow flights over safety concerns 2023-08-05 - Turkmenistan’s flagship carrier, Turkmenistan Airlines, has announced it will extend its suspension of flights to Moscow until the end of October, citing safety concerns after an increase in drone attacks on the Russian capital MOSCOW -- Turkmenistan’s flagship carrier, Turkmenistan Airlines, announced Saturday it would extend its suspension of flights to Moscow until the end of October, citing safety concerns after an increase in drone attacks on the Russian capital. The suspension of flights between the Turkmen capital of Ashgabat and Moscow would be in place until Oct. 28 “due to the situation in the Moscow air zone, and based on a risk assessment in order to ensure flight safety,” the airline said in a statement. The suspension of flights, first announced on Wednesday, was initially planned until Aug. 22. The airline's Saturday statement said that flights between Ashgabat and Moscow would instead fly to the city of Kazan, located, over 700 kilometers (435 miles) from Moscow. A drone attacked a skyscraper in central Moscow early Tuesday for the second time in around 48 hours, damaging the building’s facade and further underscoring the Russian capital’s vulnerability. Russian authorities accused Ukraine of staging the assault.
Taiwanese microchip company agrees to more oversight of its Arizona plant construction 2023-08-05 - FILE - President Joe Biden tours the building site for a new computer chip plant for Taiwan Semiconductor Manufacturing Company, Tuesday, Dec. 6, 2022, in Phoenix. The Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to worker safety, Gov. Katie Hobbs said Friday, Aug. 4, 2023. (AP Photo/Patrick Semansky, File) FILE - President Joe Biden tours the building site for a new computer chip plant for Taiwan Semiconductor Manufacturing Company, Tuesday, Dec. 6, 2022, in Phoenix. The Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to worker safety, Gov. Katie Hobbs said Friday, Aug. 4, 2023. (AP Photo/Patrick Semansky, File) FILE - President Joe Biden tours the building site for a new computer chip plant for Taiwan Semiconductor Manufacturing Company, Tuesday, Dec. 6, 2022, in Phoenix. The Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to worker safety, Gov. Katie Hobbs said Friday, Aug. 4, 2023. (AP Photo/Patrick Semansky, File) FILE - President Joe Biden tours the building site for a new computer chip plant for Taiwan Semiconductor Manufacturing Company, Tuesday, Dec. 6, 2022, in Phoenix. The Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to worker safety, Gov. Katie Hobbs said Friday, Aug. 4, 2023. (AP Photo/Patrick Semansky, File) A Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to the safety of construction workers PHOENIX -- A Taiwanese microchip manufacturer building its first U.S. plant in Arizona has agreed to more scrutiny from the state when it comes to the safety of construction workers, Gov. Katie Hobbs said Friday. At a news conference held against the backdrop of ongoing construction at a site in north Phoenix, Hobbs announced that the Taiwan Semiconductor Manufacturing Co. facility and the state have signed a voluntary protection program. “Under this agreement, TSMC will adhere to requirements higher than those at the federal level,” the Democratic governor said. “These additional safety measures include greater transparency for workers, closer oversight from the Arizona Division of Occupational Safety and Health and increased training for foremen and all hands.” The governor said construction safety standards should match the quality of the highly publicized project that has been the source of much pride. Democratic President Joe Biden visited the site in December, praising it as a demonstration of how his policies are fostering job growth. Biden has staked his legacy in large part on major investments in technology and infrastructure that were approved by Congress along bipartisan lines. The plant's construction was first announced in 2020 during Donald Trump’s presidency. At the time, TSMC announced it’s investing a total of $40 billion over eight years in Arizona and would construct a second plant. Then-Republican Gov. Doug Ducey said the factory would create more than 1,600 new high-tech jobs in the state. Construction started in 2021 on more than 1,100 acres (445 hectares) of land. The plant is slated to be in full production in 2024. The facility will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication and have the capacity to produce 20,000 wafers per month. The company has received some criticism for bringing in some workers from Taiwan to help with construction. But TSMC has said the jobs of thousands of U.S. workers already on site will not be affected. Hobbs on Friday also announced the launch of a new initiative to double the number of registered construction and trade apprentices in Arizona over the next three years.
British Columbia port workers ratify contract offer, ending Canada labor dispute 2023-08-05 - British Columbia’s port workers have voted almost 75% in favor of a contract offer, ending weeks of turbulent job action that stopped billions of dollars’ worth of goods from being shipped in Canada VANCOUVER, British Columbia -- British Columbia’s port workers voted almost 75% in favor of a contract offer, ending weeks of turbulent job action that stopped billions of dollars’ worth of goods from being shipped in Canada. In a statement on the International Longshore and Warehouse Union Canada website late Friday, president Rob Ashton confirmed the result. The dispute had shut down ports on Canada’s west coast last month for nearly two weeks and spurred several business groups and political leaders to call for back-to-work legislation. Federal Labor Minister Seamus O’Regan tweeted that both the ILWU and the BC Maritime Employers Association ratified the deal, ending the dispute. O’Regan said, however, that he is directing federal officials to review the entire case to avoid a port disruption of this magnitude from happening in the future. The employers association said in a statement that it ratified the four-year deal, which “includes increases in wages, benefits and training that recognizes the skills and efforts of B.C.’s waterfront workforce." The approval of the contract, which covers about 7,400 workers, comes after the union rejected a mediated settlement twice in July — once through the group’s leadership caucus, another by full membership.
U.S. publishing executive dies in a boat crash off Italy's Amalfi Coast 2023-08-05 - In this undated photo provided by Bloomsbury Publishing on Friday, Aug. 4, 2023, Adrienne Vaughan poses for a portrait. Vaughan, who was president of the company headquartered in New York, died in a boating accident off Italy's Amalfi Coast, her company said Friday. (Bloomsbury Publishing via AP) In this undated photo provided by Bloomsbury Publishing on Friday, Aug. 4, 2023, Adrienne Vaughan poses for a portrait. Vaughan, who was president of the company headquartered in New York, died in a boating accident off Italy's Amalfi Coast, her company said Friday. (Bloomsbury Publishing via AP) In this undated photo provided by Bloomsbury Publishing on Friday, Aug. 4, 2023, Adrienne Vaughan poses for a portrait. Vaughan, who was president of the company headquartered in New York, died in a boating accident off Italy's Amalfi Coast, her company said Friday. (Bloomsbury Publishing via AP) In this undated photo provided by Bloomsbury Publishing on Friday, Aug. 4, 2023, Adrienne Vaughan poses for a portrait. Vaughan, who was president of the company headquartered in New York, died in a boating accident off Italy's Amalfi Coast, her company said Friday. (Bloomsbury Publishing via AP) ROME -- A U.S. publishing executive died in a boating accident off Italy's Amalfi Coast, her company said Friday. Adrienne Vaughan, 45, was president of Bloomsbury Publishing's U.S. branch, which counts writers ranging from bestselling novelists Sarah J. Maas and Susanna Clarke to historian Mark Kurlansky among its roster of authors. A Bloomsbury book, “Chasing Me to My Grave: An Artist’s Memoir of the Jim Crow South,” by the late Winfred Rembert (as told to Erin I. Kelly), won the Pulitzer Prize for biography in 2022. Vaughan, who had a master's degree in business from New York University, had worked at the Disney Book Group and Oxford University Press among other companies before joining Bloomsbury in 2020 as executive editor and COO. She was promoted to president a year later and also served on the board of the industry trade group the Association of American Publishers. “Adrienne Vaughan was a leader of dazzling talent and infectious passion and had a deep commitment to authors and readers," said the association's board chair, Julia Reidhead, and its president and CEO, Maria A. Pallante, in a joint statement. “Most of all she was an extraordinary human being, and those of us who had the opportunity to work with her will be forever fortunate." The motorboat Vaughan and her family were on was rented through a skipper and had been headed to Positano when it crashed into a sailboat Thursday, Italian media said. The sailboat was carrying more than 80 U.S. and German tourists, including some celebrating a wedding. Vaughan was pulled from the water and brought to a dock but died by the time a helicopter ambulance arrived, state TV said. The Italian coast guard office in Amalfi was investigating the crash. The office did not respond to a call or an emailed request for more information. Vaughan's husband, Mike White, was hospitalized with a shoulder injury while the couple’s two young children were uninjured, according to the reports. No one aboard the sailboat was injured. A blood test for the skipper of the motorboat tested positive for substance use, according to Italian news agency ANSA, which didn't indicate whether the result indicated alcohol or drug consumption. The skipper, an Italian about 30 years old, suffered a broken pelvis and ribs, ANSA said. There was no answer at the courthouse in the southern of port city of Salerno, where prosecutors were overseeing the investigation into the accident.
Profits at Warren Buffett's firm reach $36B as stocks surge and its insurance holdings perform well 2023-08-05 - FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018. Berkshire Hathaway said Saturday, Aug. 5, 2023, that its profits surged to hit $24,755 per Class A share. A year ago, the Omaha, Nebraska-based company recorded a loss of $43.6 billion, or $29,633 per Class A share, when the value of its biggest investments fell. (AP Photo/Nati Harnik, File) FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018. Berkshire Hathaway said Saturday, Aug. 5, 2023, that its profits surged to hit $24,755 per Class A share. A year ago, the Omaha, Nebraska-based company recorded a loss of $43.6 billion, or $29,633 per Class A share, when the value of its biggest investments fell. (AP Photo/Nati Harnik, File) FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018. Berkshire Hathaway said Saturday, Aug. 5, 2023, that its profits surged to hit $24,755 per Class A share. A year ago, the Omaha, Nebraska-based company recorded a loss of $43.6 billion, or $29,633 per Class A share, when the value of its biggest investments fell. (AP Photo/Nati Harnik, File) FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018. Berkshire Hathaway said Saturday, Aug. 5, 2023, that its profits surged to hit $24,755 per Class A share. A year ago, the Omaha, Nebraska-based company recorded a loss of $43.6 billion, or $29,633 per Class A share, when the value of its biggest investments fell. (AP Photo/Nati Harnik, File) Profits rebounded at Warren Buffett’s conglomerate along with the value of its $353 billion stock portfolio in the second quarter to hit $35.9 billion OMAHA, Neb. -- Profits rebounded at Warren Buffett's conglomerate along with the value of its $353 billion stock portfolio in the second quarter to hit $35.9 billion, and many of Berkshire Hathaway's assorted businesses also performed well, led by strong results in its core insurance businesses, particularly Geico. Berkshire Hathaway said Saturday that its profits surged to hit $24,755 per Class A share. A year ago, the Omaha, Nebraska-based company recorded a loss of $43.6 billion, or $29,633 per Class A share, when the value of its biggest investments fell. But Buffett has long said that those bottom-line figures can be misleading because of the big swings in the paper value of its investments from quarter to quarter when few of Berkshire's investments are actually bought or sold. Instead, Buffett recommends that investors focus on operating earnings to see how the more than 90 companies Berkshire owns are actually performing. By that measure, Berkshire's operating earnings grew 6.6%, to $10.043 billion, or $6,928.40 per Class A share. That's up from $9.417 billion, or $6,403.61 per Class A share, a year ago. The three analysts surveyed by FactSet Research expected Berkshire to report operating earnings of $5,575.67 per Class A share. Berkshire’s revenue jumped to $92.5 billion from last year’s $76.2 billion thanks largely to the addition of truck stop operator Pilot Travel Centers, which generated $14.75 billion in revenue during the quarter. Berkshire's results were also helped by last fall's acquisition of the Alleghany insurance conglomerate. CFRA Research analyst Cathy Seifert said Berkshire will have a hard time keeping up that level of growth without additional acquisitions, which Buffett seems reluctant to make at current prices. “I think the question that should be or will be on investors' minds is, ‘How do you sustain this level of growth when many of your underlying businesses are not putting up this level of growth?’” Seifert said. Underwriting profits at Geico rebounded to $514 million as it raised premiums on its auto insurance customers by an average of 16% and continued to cut back on its ubiquitous lizard ads while paying out fewer claims. A year ago, Geico reported a $487 million pretax underwriting loss. The number of policies Geico wrote also fell by 14% Profits fell at Berkshire's BNSF railroad to $1.26 billion from last year's $1.66 billion as it carried 11% fewer shipments in the quarter, suggesting the economy continued to slow. Rising interest rates also hurt Berkshire's housing-related businesses such as manufactured home building Clayton Homes and its Berkshire Hathaway Home Services network of Realtors. But Berkshire also benefitted from interest rates that helped it generate more money on its cash. Berkshire is still sitting on a mountain of cash because it hasn’t completed any major acquisitions or made many significant new stock investments this year. The company’s cash pile grew to $147.4 billion from the first quarter’s $130.6 billion. “Buffett is carrying way more cash than he would be if he saw bargains all over the place,” said investment manager Bill Smead, of Smead Capital Management. Edward Jones analyst Jim Shanahan said it appeared that Berkshire was a net seller of about $8 billion in stocks during the quarter with most of that likely being Buffett's previously disclosed decision to unload most of Berkshire's Activision Blizzard stake. The current high prices of stocks, combined with weakness in the economy and rising interest rates, might combine to keep Buffett mostly on the sidelines and unlikely to make any major deals in the near future. “I’m kind of thinking that in this environment, we shouldn’t expect to see a whole lot out of Berkshire in the second half of the year," Shanahan said. Berkshire did repurchase $1.4 billion of its own stock in the quarter, but the pace of its buybacks slowed considerably from the first quarter, when it bought $4.4 billion of Berkshire shares. Buffett tries not to do many buybacks when he believes Berkshire's shares might be overpriced. A recent change in the way Berkshire accounts for its ownership of more than 25% of Occidental Petroleum also helped boost its second quarter earnings. Berkshire said its ownership of Occidental, combined with its 26.5% stake in Kraft Heinz, added $535 million to its bottom line. A year ago, those investments would have added only about $182 million to Berkshire's profits. ___ For more AP coverage of Berkshire Hathaway: https://apnews.com/hub/berkshire-hathaway-inc
How major US stock indexes fared Friday, 8/4/2023 2023-08-05 - The Associated Press By The Associated Press Stocks closed lower following mixed reports about the U.S. job market and profits at two of Wall Street’s most influential stocks Stocks closed lower following mixed reports about the U.S. job market and profits at two of Wall Street’s most influential stocks. The S &P 500 fell 0.5% Friday, its fourth straight loss. The Dow Jones Industrial Average lost 150 points, or 0.4%, and the Nasdaq composite fell 0.4%. Treasury yields sank after the government said hiring was a touch weaker last month than expected. That could help keep pressure off high inflation. Amazon jumped after reporting a much bigger profit than expected. Apple slumped after reporting revenue that just barely topped forecasts. On Friday: The S &P 500 fell 23.86 points, or 0.5%, to 4,478.03 The Dow Jones Industrial Average fell 150.27 points, or 0.4%, to 35,065.62. The Nasdaq composite fell 50.48 points, or 0.4%, to 13,909.24. The Russell 2000 index of smaller companies fell 3.94 points, or 0.2%, to 1,957.64. For the week: The S &P 500 is down 104.20 points, or 2.3%. The Dow is down 393.67 points, or 1.1%. The Nasdaq is down 407.42 points, or 2.8%. The Russell 2000 is down 24.07 points, or 1.2%. For the year: The S &P 500 is up 638.53 points, or 16.6%. The Dow is up 1,918.37 points, or 5.8%. The Nasdaq is up 3,442.76 points, or 32.9%. The Russell 2000 is up 196.22 points, or 11.1%.
MarketBeat Week in Review – 07/31 - 08/04 2023-08-05 - Key Points Bad news is good news as a weak jobs report sent stocks soaring. Investors believe weaker employment will allow the Federal Reserve to pause its interest rate hikes. Next week investors get the latest readings on inflation when the CPI and PPI are released. Here are some of the most popular articles from this week. 5 stocks we like better than iShares Russell 2000 ETF We’re back to bad news being good news. A weaker than expected jobs report lifted the market. The contrarian logic is that weakening employment numbers will give the Federal Reserve room to pause its campaign of raising interest rates. Adding more fuel to market bulls was an earnings report from Apple which was neither as good as the bulls hoped, nor as bad as the bears hoped. Which is a net bullish outcome for stocks. Investors will get more information about the direction of inflation next week when the consumer price index (CPI) and producer price index (PPI) are released. These reports could point to a continued downward trend. But investors should be cautious, because it’s likely that rising oil prices are not yet priced in. Next week will start off with Palantir reporting earnings on Monday. That could get the markets off with a bang. Before you prepare for next week, here are some of our most popular stories from this week. Articles by Jea Yu It’s been a great year for tech stocks, but not necessarily for small-cap stocks. That was the takeaway from Jea Yu who reminds investors that fund managers may start rotating to stocks in the Russell 2000 small-cap index. One way for investors to get exposure is through the iShares Russell 2000 ETF NYSEARCA: IWM. The ETF is up 14.2% which is lagging the NASDAQ 100 index and the S&P 500 index. Yu was also looking at a possible resurgence with Teladoc Health, Inc. NYSE: TDOC. The leader in virtual health care is showing signs of breaking out of a bearish technical pattern. Revenue is normalizing as patients are turning to the convenience and access of telemedicine in response to long wait times for in-person appointments. Another surprising market mover this week was DISH Network Co. NASDAQ: DISH. The company’s stock surged on news that it was partnering with Amazon.com, Inc. NASDAQ: AMZN to sell mobile services to Amazon Prime members. Articles by Thomas Hughes If you have FOMO about Nvidia Corporation NASDAQ: NVDA, you might want to consider Advanced Micro Devices, Inc. NASDAQ: AMD. The company posted a solid earnings report fueled by AI. Analysts reactions are mixed, but as Hughes points out, if the stock manages to clear a point of resistance, it will have nowhere to go but up. Sticking in the chip sector, Hughes was analyzing the recent surge in ON Semiconductor Corporation NASDAQ: ON. The stock surged after the company beat on earnings and raised its full-year guidance. The stock may be ready to hit new highs, but Hughes points out that investors may want to be cautious as ON stock looks like it’s forming a short-term top. Turning to the consumer staples sector, Hughes was looking at the outlook for the Kraft Heinz Company NASDAQ: KHC. The stock has been range-bound for a couple of years, but Hughes reminds investors that it’s trading at a discount to the sector and remains a strong deep value play. Articles by Sam Quirke Apple, Inc. NASDAQ: AAPL reported earnings this week. If you were considering trading AAPL stock around earnings, we hope you read Sam Quirke’s article which provided investors with two foolproof ways to trade Apple no matter what the earnings report shows. Quirke was also writing about the ongoing turnaround story happening with Roku, Inc. NASDAQ: ROKU. The stock is up 160% in 2023, but Quirke notes that there were several things to love about the company’s earnings report, which means there’s still an opportunity for investors to take a position in ROKU stock. An opposite story is happening with SoFi Technologies, Inc. NASDAQ: SOFI. The stock has climbed 100% since May, but it’s pulling back after an earnings report that was just ok as far as analysts were concerned. However, Quirke explains why there’s still long-term potential for SOFI stock. Articles by Chris Markoch One way that companies return value to its shareholders is by offering share buybacks. When it comes to buybacks, bigger isn’t always better, but if the other fundamentals are right, size does matter. This week, Chris Markoch pointed investors to three companies that are offering some of the largest share buybacks, but also give investors with other reasons to buy. Markoch was also writing about chip stocks which are the backbone of artificial intelligence. With that in mind, he was looking at three chipmakers that still have room to run despite the recent growth in the AI sector. And one of the stocks moving the Dow this week was Caterpillar, Inc. NYSE: CAT. The company beat on the top and bottom lines. However, heading into earnings, the growth looked fully priced in, so investors should wait to see if analysts raise their price targets for CAT stock before taking a position. Articles by Kate Stalter Two of the most compelling sectors that will benefit from artificial intelligence (AI) are biotech and healthcare. The possibilities for drug discovery and personalized medicine are intriguing. If you’re looking for AI plays beyond companies like Nvidia, Kate Stalter wrote about the AI-fueled growth in several companies in these sectors. While there’s been a lot of commentary about the “Magnificent 7” stocks, Stalter writes that there’s been some rotation in the S&P 500. This week, Stalter gives investors the names of the stocks that have moved to the top of the S&P 500 leaderboard. One name that’s not on that list, but maybe it should be is Palantir Technologies, Inc. NYSE: PLTR. To say the stock has been on a tear is an understatement, but that is creating frustration for investors who are looking to buy or trade the stock. The company reports earnings next week and Stalter gives investors some ideas on how to handle PLTR stock ahead of the report. Articles by Ryan Hasson Exchange-traded funds (ETFs) are a way for investors to get exposure to an entire sector. They can smooth out the volatility that comes from an individual stock or stocks and provide cost efficiency. But while many ETFs sound the same, there are differences in the objectives of each fund. This week Ryan Hasson wrote about three tech-focused ETFs that have been top performers this year. If individual tech stocks are more your style, Hasson also wrote about two tech stocks that are showing great promise and look ready to break above key technical levels. That’s the fuel for a great buying opportunity. Hasson was also writing about the growing interest among investors in stocks with high short-interest. Ever since the short squeezes in stocks like GameStop Corp. NYSE: GME and AMC Entertainment Holdings, Inc. NYSE: AMC, investors are looking for the next gigantic short squeeze. It’s a risky strategy, but if it fits your trading style, Hasson points out three stocks with high short interest that should be on your watchlist. Articles by Gabriel Osorio-Mazilli PayPal, Inc. NASDAQ: PYPL has been a volatile stock and mostly to the downside for the last two years. As Gabriel Osorio-Mazilli wrote this week, PYPL stock continues to drop even after a strong earnings report. But the underlying strength in the report suggests this may be a good time to buy the dip. Turning his attention to the hotel and hospitality industry, Osorio-Mazilli was writing about the strong earnings report from Marriott International, Inc. NASDAQ: MAR. Investors were expecting the hotel chain to show softening demand, but at least for now the earnings report shows that is not the case, particularly in areas outside the United States. MAR stock did not react much to the news, but Osorio-Mazilli explains why the stock’s technicals point to more gains. When it comes to the rental car space, however, the results for Avis Budget Group Inc. NASDAQ: CAR were mixed. The rental car company missed on revenue but had a healthy beat on earnings that may allow CAR stock to continue its blistering summer rally. Articles by MarketBeat Staff By their very nature, contrarian investors trade against the trend. And so it is that many traders have had their focus on Carnival Corporation & plc. NYSE: CCL which has been one of the market’s star performers this year. However, the MarketBeat staff likes what they see in CCL’s fundamentals and point out four reasons why it may be smooth sailing for CCL stock. Speaking of hot sectors, the pet sector continues to be on fire. But rather than looking at one of the many growth stocks, the MarketBeat staff was looking at Zoetis, Inc. NYSE: ZTS for its dividend. Specifically, the company recently raised its dividend for the ninth consecutive year. But as you’ll read, that’s far from the only reason to own ZTS stock. And for investors looking for a hot sector outside from AI, the MarketBeat staff points to the beauty industry. This has been fueled by a continued return to normalcy. And one segment that’s been seeing strong growth within this hot sector is perfumes and cosmetics. If you’re interested in a strong stock to look at, consider Inter Parfums, Inc. NASDAQ: IPAR which is up more than 25% since it rang the bell to close the NASDAQ exchange in February. Before you consider iShares Russell 2000 ETF, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and iShares Russell 2000 ETF wasn't on the list. While iShares Russell 2000 ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Best Meme ETFs to Buy Now 2023-08-05 - Key Points Meme stocks are volatile assets that gain popularity on social media sites like Reddit. While there are only a few meme ETFs on the market in 2023, becoming an early adopter has the potential to provide enhanced short-term returns. Learn more about the three best meme ETFs to buy now with MarketBeat. 5 stocks we like better than EXA) If you're like most traditional investors, you were probably first exposed to meme stocks during the great GameStop bull run of January 2021. While GameStop showcased the power of social media sentiment to influence the market, it isn't the only investment that users are meme-ing — including a few options to include these investments as diversified ETFs. Read on to learn about meme stock ETF options, some examples of meme stocks and some of the benefits that adding these often-volatile investments to your portfolio might have. Overview of Meme ETFs Before discussing the meme economy and the specifics of meme ETF stock prices, it's important to define ETFs and understand how they vary from individual stocks. "ETF" stands for "exchange-traded fund," a grouping of stocks that trade together as a single unit. When you purchase shares of a fund, you pool your money under the fund's management team, which divides investor funds among the holdings laid out on its website. Tools like MarketBeat's ETF screener can help you narrow down funds by holdings, helping you identify assets that meet your goals. Investing in an ETF provides many benefits over picking and choosing individual stocks. When you buy into an ETF, you gain exposure to all the assets listed as part of the ETF. Your losses won't be as concentrated should a particular stock fail to perform as you expect. In other words, ETFs provide access to investments across a sector, diversifying your holdings. As you might suspect, given the name, meme ETFs are exchange-traded funds centered around meme stocks. Meme ETF holdings are primarily composed of "meme stocks," an affectionate nickname for stocks that experience rapid and often unpredictable price movements driven by online communities. While the most famous meme stocks are retail stocks, a meme stock can pop up in any sector in which online communities collectively see potential. Meme stocks can be risky for long-term investors due to their inherently volatile nature. The popularity and price movement of meme stocks are not necessarily based on the company's fundamental financial performance but rather on the fuel of social media and online communities to influence market sentiment and trading behavior. These social media websites may have dubious fact-checking information and resources, causing misinformation to spread quickly. Despite this, meme stocks are popular, especially among tech-savvy short-term traders. Meme ETFs can offer exposure to various meme stocks without the versatile market research skills required to determine which stocks are trending and which meme ETF stocks are priced for a rebound. While there are currently limited ETFs for meme stocks that explicitly call themselves "meme-oriented," tech-forward ETFs can help you stay on the cutting edge of consumer preferences. Examples of Meme Stocks Before investing in a meme ETF, it's important to understand which assets qualify as meme stocks. While the definition of a meme stock might change depending on the context, most are lower-cost, highly publicized consumer goods shares. Recent meme stock picks have also centered around tech and cryptocurrency, including EV stocks and stocks that support the EV charging infrastructure. Actively managed meme ETFs may integrate data from online forums like WallStreetBets when selecting assets for inclusion. Some examples of meme stocks include the following: GameStop: Perhaps the first and the most well-known meme stock, GameStop NYSE: GME became a public name in January 2021 when investors banked on a short squeeze on the stock. GameStop quickly saw an extraordinary price surge fueled by Reddit users, calling national attention to the influence social media could have on share prices for the first time. AMC Entertainment: AMC Entertainment NYSE: AMC is a chain of movie theaters hit particularly hard by the effects of the COVID-19 pandemic. Shortly after GameStop became a meme stock, investors began to look for opportunities to challenge short sellers in other areas. AMC became the next target, reaching a peak price of about $35 in June 2021. Palantir Industries: While not a meme stock in the same sense as GameStop or AMC, Palantir Industries NYSE: PLTR is another favorite of online investors. Since its initial public offering , Palantir received attention from retail investors, particularly due to its association with prominent figures like Peter Thiel, who co-founded the company. It saw a price surge that benefitted early investors who connected via social media and is now a major component of the Roundhill Meme ETF. SoFi Technologies: SoFi Technologies NASDAQ: SOFI is a financial technology company that offers various products and services, including personal loans, student loan refinancing, mortgages and investment services. SoFi's claim to fame is its ease of use, combining a simple online application process with a lack of in-person representatives, which allows the company to offer lower rates. After stirring up attention on social media, SOFI's IPO and subsequent success led it to be another significant inclusion in most meme-oriented ETFs. Remember that by definition, meme stocks will come into and fade out of popularity. Maintaining an active portfolio management strategy can help you better capitalize on these often-unpredictable price movements. Why Invest in Meme ETFs? While meme stocks and ETFs can be volatile assets, this volatility can benefit investors in some circumstances: High short-term returns: Meme stocks have the potential for rapid and significant price surges in a short period, resulting in corresponding rises in ETF prices. Investors who can time their entry and exit points correctly can make substantial gains in a short time frame. Chance of higher returns for smaller investors: Meme stocks often attract individual retail investors with limited resources compared to institutional investors. Participating in meme stock investing allows smaller investors to engage in the stock market and potentially access significant returns. New education opportunities: Meme stock investing can be an educational experience for some investors, especially those new to the stock market. It can provide a chance to learn about market dynamics, trading strategies and the impact of social media on stock prices while also utilizing your favorite social media sites. If investing seemed too intimidating, meme stocks could be a great place to start learning. 3 Best Meme ETFs to Buy Now Now that you understand what meme stocks are and how they come together to form meme ETFs, let's look at some of the top meme stock-containing ETFs on the market. Investing in multiple ETFs can give you broader exposure to the "meme market" and limit losses if the market turns negative. 1. Roundhill MEME ETF The Roundhill MEME ETF NYSE: MEME is a one-of-a-kind ETF investment and the first to use social sentiment to calculate its holdings. MEME tracks the Solactive Roundhill Meme Stock Index, which consists of 25 equal-weighted U.S.-listed equity securities that exhibit a combination of elevated social media activity and high short interest. This combination capitalizes on the same price movements that propelled GameStop and AMC to price discoveries in January 2021. Image text: Despite its reliance on of-the-moment meme stocks, Roundhill's meme ETF price has remained on an upward trajectory for the past three months. The underlying index rebalances every two weeks, meaning that the fund is also actively rebalanced regularly. This makes MEME a particularly dynamic option, which can be a strong choice if you want to add a layer of high-risk, high-reward assets to your portfolio. The expense ratio of 0.69% is also affordable compared to other actively managed options, meaning you'll lose less of your dividends. 2. Roundhill Ball Metaverse ETF Another top meme stock, some investors believe that Meta Platforms NASDAQ: META will bring about a new wave of internet companies that will change the current online landscape. The Roundhill Ball Metaverse ETF NYSE: METV tracks the performance of Roundhill's proprietary Ball Metaverse Index, a tiered weight portfolio of globally-listed companies actively involved in the Metaverse. Some of the fund's top holdings include Roblox Corporation NYSE: RBLX, NVIDIA Corporation NASDAQ: NVDA and Unity Software Inc. NYSE: U. This fund's makeup can make it a beneficial portfolio inclusion for anyone looking to invest in the Metaverse beyond the company formerly known as Facebook. While Meta makes up a major percentage of METV, it also contains 46 additional companies, providing more diverse integration for investors. 3. Fidelity Crypto Industry and Digital Payments ETF In addition to stocks, members of finance-oriented social media forums also regularly discuss crypto projects. While the Fidelity Crypto Industry and Digital Payments ETF NASDAQ: FDIG isn't quite a meme stocks ETF, it does help you take advantage of the social media sentiment surrounding hot cryptocurrency projects. For example, one of the fund's top holdings is in Coinbase Global NASDAQ: COIN, a top cryptocurrency brokerage that tracks social media sentiment when considering which assets to offer to its buying platform. If you're more interested in cryptocurrency memes but not in the volatility of crypto tokens, an ETF like FDIG can offer an excellent learning experience. The fund's total market capitalization of more than $40 million in August 2023 also makes it a more stable choice for sometimes-volatile meme assets. Memes or Dreams? While it can be easy to focus on meme stock success stories, it's important to remember that financial misinformation can often spread more quickly than info on genuine opportunities. For example, investors who quickly jumped in on a cryptocurrency themed around the hit South Korean drama Squid Game found themselves victims of a rug pull scam. You can limit your risk when investing in meme stocks by limiting investments to individual shares rather than options contracts and purchasing only assets listed on major exchanges like the New York Stock Exchange. As with any unique asset, invest only what you can afford to lose. FAQs Before investing, you might have the following last-minute questions about meme stocks and meme ETFs. What is a meme fund? A "meme fund" is usually a meme ETF like the Roundhill MEME ETF. This ETF incorporates social media sentiments (like those expressed on meme forums like WallStreetBets) into its index weighting. This dynamic rebalancing strategy aims to provide short-term returns. What is the meme stock index? The Roundhill Meme Stock Index is an index that weights companies based on factors like short interest and social media sentiment. It favors meme stocks that showcase elevated social media activity and high short interest. What are the four phases of the meme stock cycle? The four main phases of the meme stock cycle are the early adopter, middle, FOMO and profit-taking phases. Early adopters are the trendsetters in the meme stock cycle and identify an opportunity before the bulk of adopters (the middle) popularizes it. FOMO stage investors may lose money as the profit-taking stage arrives and early adopters take their returns.
XPO Keeps Reaching New Highs: Markets Love the Stock 2023-08-05 - Key Points XPO Logistics stock is rising by nearly double digits during Friday's trading session. Markets have placed a lot of faith and confidence in the company's future potential. Despite some slight contractions during the year, markets are focusing on the prospects of XPO. 5 stocks we like better than Schneider National Shares of XPO NYSE: XPO have been on a stratospheric rise since the first quarter of 2023, blowing past all expectations and delivering a massive 165% advance in less than six months. Some market participants speculate that this rally has run out of steam, but you can't fight the trend. During Friday's trading session, XPO Logistics stock rose up to 8% as markets digested the latest second-quarter 2023 earnings release. Traders and other participants look for a justifiable development pushing for further momentum in the stock, while bears inevitably look for any signs of slowdowns and a subsequent pullback. Bears will have to fight not only the massive upward trend in the stock, but also the overall market sentiment, which rewards this stock handsomely. As the stock rises by nearly double-digits and looks to break through its recent all-time high, it poses another optimistic outlook for the company despite some cyclical slowdowns in the financials. Where is the Market Vote? The initial vital signs in financial markets, sometimes called the "popularity contest," can be an excellent tool for investors to begin understanding sector favoritism. Since bias usually leads to higher returns and continued momentum, understanding the different returns in the logistics and trucking sectors can lay an initial foundation. XPO has blown past other mid-capitalization competitors (companies in size of $2 billion to $10 billion), running circles around names like ArcBest NASDAQ: ARCB and Schneider National NYSE: SNDR. During the past 12 months, ArcBest performed by a decent 34.5%, while Schneider rose by 28.2%. These may be an adequate rate of return for most investors. Those looking to build serious wealth would be jealous of their friends who invested in XPO. The forward price-to-earnings ratio values the next 12 months of expected earnings rather than the past 12 months, as the traditional P/E would attempt. The markets are placing a higher perceived value and "quality" over each dollar of future earnings expected from this company — peers like ArcBest and Schneider trade at a lower 12.0x and 13.9x, respectively. Value investors should consider this first. Outlook-Driven Markets Within the company's second-quarter investor presentation, investors can go over management's value proposition, which describes the "why" behind investing in the company. Over 2021 to 2027, management is committed to retaining a few key performance indicators within a specific range and considering the market's confidence via valuation multiples and price performance — solid expectations. XPO experienced a slight contraction revenue, 6.3, driven by lower fuel surcharge revenue, justified by the wild swings markets that have participated in the oil markets. As investors focus on the future, holding revenue against management's 6% to 8% range in the coming years would be beneficial, an attractive rate for a company this size. This future revenue growth will play a significant role in sustaining the company's average profitability; as a key player in the United States' overall trucking and logistics supply chain, XPO can return a desirable rate for investors. Achieving a 34% return on invested capital (ROIC) allows management to reallocate more capital into business improvements and other shareholder benefits. Before you consider Schneider National, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Schneider National wasn't on the list. While Schneider National currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Starbucks Market at a Turning Point: Is a Breakout Imminent? 2023-08-05 - Key Points Starbucks had a mixed Q2 but posted record results and guided for growth. Analysts have lowered their price targets for the stock but still see it trending higher by 10%. Dividends and share repurchases help support the market and will continue in 2023 and 2024. 5 stocks we like better than Starbucks Starbucks Corporation NASDAQ: SBUX share prices are at a turning point, and a breakout is imminent. The market has been consolidating at the low end of a trading range following a minor correction, but that episode is over. The likely scenario is that upward price pressure will continue to build on Starbucks stock, and the market will move above a critical resistance point. Starbucks Has Mixed Quarter: Investors Buy the Dip Starbucks had a mixed quarter based on analyst estimates. However, revenue of $9.2 billion is up 12.9% compared to last year — a company record that missed estimates by only $0.080 billion, or about 90 basis points. A systemwide comp store sales underpinned by growth in International markets drove revenue 10%. Transactions increased 5% for the chain, compounded by a 4% increase in average tickets with varying results on a regional basis. In the U.S., Starbucks' largest market, sales grew by 7%, with a 6% increase in tickets average 1% increase in transactions. Internationally, the transaction comp increased by 21%. Among the drivers of growth are food, delivery and store count. Food sales are evidence of deepening penetration of existing markets, also evidenced by the 15% increase in active rewards members, while the store count rose by 588 or about 1.6% for the quarter. The margin news is equally good. The company was able to leverage sales growth, effectively pass-through price increases and improve productivity to drive a 140 basis point increase in the GAAP operating margin. The GAAP operating margin widened by 140 basis points with a similar increase when adjusted. The 99 cents in GAAP earnings is up 25% compared to last year; the $1 in adjusted earnings is up about 19% and beat the Marketbeat.com consensus by 500 basis points despite the top-line weakness. The guidance is another positive detail that was only as expected relating to the analyst's expectations. The company narrowed its guidance for revenue growth to a range of 16% to 17%, which is great. Starbucks will far outpace the broad market average. The top-end is lower than previously expected, and the mid-point aligns with the consensus. This is why the stock price received several downward price target revisions. Analysts and Institutions Buying Starbucks Starbucks trades at a high 29.5x earnings but is delivering growth. The valuation could become a problem. Until then, the analyst and institutions have been buying the stock and supporting the market. The analysts' reaction to the Q2 results is mixed, there are some price target reductions, but the takeaway from the activity is positive. The price target is trending higher, double-digits above the price action, and the analysts are Buying the stock. The 24 analysts with ratings on MarketBeat.com peg the stock at "moderate buy." Six have issued fresh commentary following the Q2 release, including six reiterated ratings and three lower price targets. However, the new targets align with the consensus of $111.50 or about 9% above the current action, and the consensus has been trending higher. Institutional activity, notably, spiked in Q3 when the price action corrected from six-month highs. The price action was mixed following the Q2 release, but the dip was bought, and the bias is upward. The price action is headed up from solid support at the $100 level, with eyes on the $104 resistance target. If the market can get above that level, it should increase to the $110 region before hitting serious resistance. A move above that level would signal a significant shift in the market and open the door to a sustainable rally. Before you consider Starbucks, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Starbucks wasn't on the list. While Starbucks currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
10 Best Natural Gas Stocks to Buy Now 2023-08-05 - Natural gas is one of the world's most reliable energy sources due to its low prices and lower environmental impact, especially when compared with other nonrenewable energy sources like oil and coal. It has become a key pillar of modern economies worldwide because it also serves as a cleaner alternative ecologically, producing nearly 30% less carbon dioxide than oil and 50% less than coal. Natural gas is often the solution where people can't get renewable energy. What is the best natural gas stock to buy? We'll help you discover the top 10 best natural gas stocks worth your time and money. Natural Gas: An Overview Why should you even consider finding the best natural gas companies stock? With countries transitioning to cleaner energy sources, natural gas may play a huge role in meeting future energy demands. The European Union's determination to stop importing gas from Russia due to the country's invasion of Ukraine has caused an imbalance in the market and a short-term scarcity of supply. Nevertheless, due to its distinct qualities, demand for natural gas is still expected to increase by 5% yearly between 2021 and 2030. From 2030-2050, natural gas demand is still likely to remain steady. That means a consistent demand for natural gas stocks in the long run, making natural gas a sound choice. And companies in the oil and gas sector often pay dividends, which allows you to earn regular income on returns. Features to Look for in Natural Gas Stocks As you look for the best gas companies to invest in, you should consider a few features. Knowing what these features are and how they'll affect your decision can make it easier to know the best natural gas stock to buy and invest confidently. Production Volume The production volume is key because it determines the amount of natural gas a company produces and can often indicate how profitable it will be. Higher production volumes mean more profit potential and increased revenue. Capital Expenditure Capital expenditure (or capex) is the money companies spend acquiring or maintaining assets. These assets usually include drilling rigs, pipelines, facilities and equipment used to extract natural gas. Companies with higher capex may have better-developed infrastructure, leading to more efficient operations and greater profits in the long run. On the other hand, companies with lower capex tend to have fewer resources available for exploration and development of new projects. Dividend Yield Dividend yield measures how much of a return company shareholders will receive from dividends per share compared to its share price. A high dividend yield indicates you'll get higher returns from dividend payments than in other stocks. Conversely, a low dividend yield suggests you'll see smaller returns from dividends per share than if you'd invested elsewhere. Reserves Reserves are the amount of natural gas a company has in storage, waiting to be sold. Companies with larger reserves will have a steady supply of natural gas to sell and won't be as impacted by any temporary market instability that pops up. Profitability Profit is a must to consider when choosing the best natural gas stocks. A profitable company is more likely to pay dividends, which provide you with regular income. Profit can also indicate future growth potential, which can increase the value of your investment over time. 10 Best Natural Gas Stocks What are the best natural gas stocks? Take a look at our top 10 natural gas stocks to buy now. 1. Cheniere Energy Inc. Cheniere Energy Inc. NYSEAMERICAN: LNG is one of the largest exporters of liquefied natural gas (LNG) in the United States. The company owns and operates several natural gas pipelines and storage facilities, making it a leading player in the industry. Cheniere has also secured long-term contracts with international customers, providing revenue stability. Cheniere financials are strong. The company earns $1.43 billion in net income (profit) each year or $31.24 on an earnings-per-share basis. 2. Chesapeake Energy Corporation Chesapeake Energy Corporation NASDAQ: CHK is one of the leading public natural gas companies in the U.S. and is well known for its efficient drilling operations. The company has recently emerged from bankruptcy and plans to focus on natural gas production in the coming years. With the increasing demand for natural gas, Chesapeake Energy looks poised to grow and provide strong returns. It has a market capitalization of $11.31 billion and generates $11.74 billion in revenue annually and $4.94 billion in net income (profit) each year, or $47.99 on an earnings-per-share basis. It pays an annual dividend of $2.20 per share and has a dividend yield of 2.64%. This payout ratio is healthy and sustainable, below 75%. 3. APA Corporation APA Corporation NASDAQ: APA is an exploration and production company that operates natural gas reserves in the United States, Egypt and the North Sea. The company has consistently grown in natural gas production in recent years and has a robust pipeline network for transportation. It has a market capitalization of $12.39 billion and generates $12.13 billion in revenue annually. The company earns $3.67 billion in net income (profit) annually, or $6.15 on an earnings-per-share basis. APA pays an annual dividend of $1 per share and currently has a dividend yield of 2.50%. The APA dividend has increased for two consecutive years, and the dividend payout ratio is 16.26%. 4. EQT Corporation EQT Corporation NYSE: EQT is known for its vast operations in the Appalachian Basin, which spans several states on the east coast of the U.S. It has an extensive portfolio of natural gas assets, including production, gathering and transmission facilities. EQT has been expanding its operations and recently acquired several natural gas properties in the region, making it a strong contender for investment. It's also experienced significant growth recently, with revenue and net income increasing yearly for several years. EQT's profit margin has remained strong, averaging 27% over the past three years. 5. Williams Companies Inc. Williams Companies Inc. NYSE: WMB is a leading natural gas infrastructure company that operates a vast network of pipelines and processing plants across North America. The company generates income from processing fees for natural gas, making it less exposed to commodity price fluctuations. Williams Companies pays an annual dividend of $1.79 per share and currently has a dividend yield of 5.25%. The WMB dividend yield exceeds 75% of all dividend-paying stocks, making it a leading dividend payer. 6. Range Resources Corporation Range Resources Corporation NYSE: RRC is a leading independent natural gas producer operating primarily in the U.S. Appalachian and Midcontinent regions. The company has a long track record of consistent production growth and has a strong focus on cost control, making it a good investment option if you're seeking stable returns. Range Resources has a market capitalization of $7.55 billion and generates $4.15 billion in revenue annually. The company earns $1.18 billion in net income (profit) annually or $6.87 on an earnings-per-share basis. 7. Devon Energy Corporation Having merged with WPX in 2021, Devon Energy Corporation NYSE: DVN is one of North America's largest independent energy companies, operating primarily in the Midwest. With a diverse portfolio of natural gas assets, including drilling rigs and production facilities, Devon Energy financials have consistently delivered strong performance and returns. It has pledged to reduce its greenhouse gas impact to net zero by 2050 through energy efficiency and leakage, a reduction in flaring and the electrification of its operations. 8. Coterra Energy Cabot Oil & Gas Corp. and Cimarex Energy completed their $17 billion merger in 2021, forming Coterra Energy NYSE: CTRA, with a strong presence in the Marcellus Shale region, one of the largest natural gas fields in the U.S. The company has made significant investments in technology and operational efficiencies, with higher production volumes and lower operating costs. Coterra has a market capitalization of $20.76 billion and generates $9.05 billion in revenue annually. The company strives to achieve high returns by investing in various natural gas, natural gas liquids and crude oil investments. 9. Southwestern Energy Company Southwestern Energy Company NYSE: SWN is an independent energy company that operates in the Appalachian Basin, Fayetteville Shale and Marcellus Shale regions. It's shown consistent growth in natural gas production. It has made major strides in reducing costs of exploration and production. Southwestern Energy financials have also invested in new technologies to improve efficiency rates further. It has a market capitalization of $7.09 billion and generates $15.00 billion in revenue each year. 10. Antero Resources Corporation Antero Resources Corporation NYSE: AR is a leading independent natural gas and oil company that operates primarily in the Appalachian Basin. It has a diversified portfolio of natural gas assets, including significant acreage in the Upper Devonian shale formations. Antero Resources boasts a strong track record of production growth and cost control, making it a prime option for stable returns. Antero has a market capitalization of $8.01 billion and generates $7.14 billion in revenue annually. It's also been investing in innovative technologies to enhance its drilling operations and reduce environmental impact, positioning it as a responsible leader in the industry. A Natural Choice The natural gas sector is a dynamic and ever-evolving industry that's only poised to grow due to increasing global demand. The best natural gas stock offers many potential investment opportunities. Natural gas companies can be an intelligent way to diversify your portfolio. If you're wondering, "How do I invest in natural gas?" the 10 energy companies discussed here have long track records of solid performance, making them top options if you're looking for stable returns among a natural gas stocks list. FAQs Now that you know more about the bright future for natural gas investments, do you still have questions about the best natural gas stocks? We have some answers below. Which is the most profitable natural gas company? The most profitable natural gas company will have a strong portfolio of natural gas assets and operations and a history of producing stable returns. Look for companies on our natural gas stocks list investing in new technologies and practices to reduce their environmental footprints and remain competitive. Some of the leading natural gas companies include EQT, Southwestern Energy and Antero Resources. The best gas companies to invest in have strong track records of producing returns and are some of the most attractive options in the sector. Is it a good time to invest in natural gas stocks? The natural gas sector has risen in recent years and should continue growing. Many experts believe that now is a good time to invest in natural gas stocks due to their potential for long-term growth. But to invest in natural gas stocks can be risky, so pay attention to how natural gas prices may fluctuate over time and to macroeconomic factors that could affect the industry. What is the best natural gas company? When choosing the best natural gas company, there are various factors to consider. Look at the company's track record of performance, financial stability and soundness, and projected future growth. Research natural gas companies' environmental and social responsibility practices. Some top-performing natural gas companies are Williams Companies, Devon Energy and Antero Resources. The best natural gas companies stock include those that have strong track records of producing returns and are appealing options in the sector.
What Are Specialty REITs? How to Invest in Them 2023-08-05 - Key Points Real estate investment trusts (REITs) are a special type of real estate company required to pay out dividends to investors. Specialty REITs combine market specification with dividend income, making them an appealing choice for some investors looking for hands-off real estate investing. Learn the answer to "what are specialty REITs?" and how to invest in them with MarketBeat. 5 stocks we like better than EXA) Real estate investment trusts (REITs) are special real estate companies operating and maintaining commercial and residential properties. REITs are attractive to income investors because they are one of the only types of stocks required to pay out a regular dividend to investors. But did you know that you can also invest in specialized REITs to diversify your passive income streams? Before you invest in a REIT, consider the sector you're investing in. Read on to learn more about specialty REITs, how they work and the pros and cons of investing in these real estate operations. What is a Specialty REIT? Before discussing a specialty REIT and looking at examples, defining a REIT and why these companies differ from other real estate stocks is important. A real estate investment trust (REIT) is a special type of real estate company that purchases and operates commercial real estate or rented residential properties. Most REITs operate relatively straightforwardly, purchasing and maintaining rental properties and collecting tenant income. Some REITs are also involved in mortgage purchasing and home financing. What sets REITs apart from other companies is their unique tax structure and obligation to distribute a significant portion of their earnings to shareholders as dividends. To qualify as a REIT, a company must meet certain criteria set by the federal government and oversight bodies like the Securities Exchange Commission (SEC). One of these requirements is that REITs must distribute at least 90% of their taxable income back to shareholders as dividends. These recurring and required dividend payments are one of the REITs' main appeals, creating a reliable stream of passive income. As the name suggests, specialty REITs are a subset of REITs that focus on investing in specialized real estate properties and assets. These companies invest in "themed" portfolios of real estate assets within a specific industry or providing a specific type of real estate. Some types of specialty REITs you can invest in include the following. Healthcare REITs: Healthcare REITs invest in various healthcare-related properties such as hospitals, medical centers, senior housing facilities, skilled nursing homes and assisted living communities. The demand for these healthcare facilities tends to be relatively stable, driven by the aging population and healthcare needs. This makes them popular for investors looking for a REIT subset with more consistent future product needs. Commercial retail REITs: These REITs invest in properties related to retail and commercial spaces, including shopping malls, outlets and standalone retail buildings. Consumer spending trends and the overall health of the retail and consumer discretionary sectors can influence the performance of retail REITs. Data center REITs: Data management and cloud computing require large-scale server centers. Data center REITs are a type of specialty REIT that maintain and operate server centers and may also provide internet and cloud computing services to complement customers' businesses. Additional types of specialized REITs include office REITs, hospitality and hotel REITs and infrastructure REITs. Like specialized stocks, you can also invest in a specialty REIT ETF that incorporates multiple REITs from within a particular industry or sector into a single investment. These speciality funds provide a quick and convenient way to gain exposure to multiple REITs with a single buy order. How Do Specialty REITs Work? Specialty REITs acquire and own real estate properties to generate rental income like other REITs. However, their focus is limited to a particular niche within the real estate market, such as healthcare facilities, data centers or retail operations. Specialty REIT managers begin by identifying and scouting new real estate opportunities within the sector that they operate in. They then use an in-house process to determine investments that qualify for inclusion in their holdings and purchase the properties. The primary source of income for REIT specialty types comes from the rental payments received from tenants using their properties. For example, a healthcare REIT would earn income from healthcare providers leasing medical facilities, while an industrial REIT would generate revenue from warehouse or distribution center tenants. The REIT collects these payments in exchange for maintaining and managing the commercial space, which are then distributed to investors as dividends. How to Invest in Specialty REITs Most REIT speciality companies trade on major stock exchanges using the same method as any other share of stock. If you're interested in buying and selling shares of specialty REITs, use the basic steps below to get started. Step 1: Select a sector. The first step to investing in specialty REITs is determining which industry you want to invest in. Consider your overall investment objectives, time horizon and risk tolerance when selecting which types of specialty REITs to include in your portfolio. Different specialty REIT sectors come with varying levels of risk and potential for returns. For example, healthcare REITs might offer more stability due to essential services, while data center REITs might present higher growth potential and increased volatility. Consider factors like income potential, current economic conditions and supply/demand dynamics when selecting which specialty industry to focus on. MarketBeat's list of the top market REITs can help you identify thriving sectors in the REIT industry. You should combine multiple companies within a single sector by investing in a specialty REIT ETF over individual companies to spread your risk out between more operations. Step 2: Open a brokerage account. The next step is to open a brokerage account after deciding which specialty REIT sectors you're interested in investing in. Brokerage accounts are intermediary accounts that connect you with a licensed stockbroker authorized to buy and sell assets on behalf of clients. Most brokers now allow new clients to create a brokerage account from the comfort of their home with an I.D. and link to a funding account. If you're a resident of the United States, you have dozens of options when it comes to opening your first brokerage account. Examples of popular brokers include Robinhood, Charles Schwab, E*Trade and T.D. Ameritrade. Some of the factors you might want to consider when selecting a broker can include: REIT and market availability Types of accounts (taxable brokerage, IRA , self-directed 401(k), etc.) Commissions and account fees Trading platform and tools After opening your account, you'll need to link a funding source before you can buy or sell assets. This may take a few days to confirm fully — use this time to explore market resources and track the items you're considering buying. After funding your account, you can place a buy order for the shares you're interested in. Step 3: Monitor your investment and manage dividends. If your broker can complete your buy order, you'll see your shares in your brokerage account. From here, you'll be responsible for monitoring your shares' values and deciding how long you want to hold your assets. You'll also need to decide how to manage your dividend payments. Most brokers allow you to take your dividends in cash using your linked funding method for deposit, but you can also sign up for a dividend reinvestment program with most assets. When you enable dividend reinvestment, dividends are automatically reinvested in the company that issued them. This can be a more convenient way to grow your holdings over time. Example of a Specialty REIT A quintessential example of a specialty REIT is data center giant Digital Realty Trust NYSE: DLR. Digital Realty is a global company focusing its investment portfolio only on data centers, with operations in South Africa to Greece. The company sets itself apart from competing data center REITs with its PlatformDIGITALR service, which streamlines customer data processing. Digital Realty Trust has a total market capitalization of $35 billion, making it a major player in the data center REIT arena. Image text: While DLR's 4% dividend yield isn't the highest on the market, its payments have risen consistently for the past two decades. Pros and Cons of Specialty REITs Specialty REITs are unique assets, and you'll need to consider both the pros and cons before investing. Pros Specialty REITs allow you to combine an eye toward real estate with a particular sector an investor believes is primed for a strong future. Focused exposure: Specialty REITs allow investors to concentrate their exposure in specific real estate sectors, providing targeted exposure to industries with potential growth opportunities. This focused approach can appeal to those with a strong conviction about a particular sector's future prospects. Specialized dividends: Many specialty REITs focus on sectors with stable demand, such as healthcare facilities, which can lead to consistent rental income. This makes specialty REITs attractive for income-focused investors looking for regular dividends. Diversification within the real estate investment sphere: You can diversify your real estate holdings by investing in specialty REITs across different sectors. This diversification can mitigate risk compared to owning individual properties directly. Cons Drawbacks of REITs can include heavy concentration in a single sector and the risk of volatility and future dividend cuts. Sector-specific risks: Specialty REITs are exposed to the risks inherent to their chosen sectors. For example, regulatory changes may affect healthcare REITs, while retail REITs could face challenges due to shifts in consumer behavior. This can cause concentrated losses if all your specialty REIT investments are in the same sector. Lack of diversification: Most specialty REITs invest exclusively in a single sector or area of real estate, which can make them riskier investments due to a lack of diversification. REIT Alternatives REITs aren't the only way to invest in real estate. Some common alternatives to REITs might include: Investments in real estate-related stocks: REITs aren't the only stock that deals with real estate. Investing in supplementary companies and sectors can complement REIT investments. Crowdfunding: Real estate crowdfunding platforms allow investors to pool their funds to invest in various real estate projects, allowing each investor to see a higher return on investment. This option provides opportunities to invest in specific properties or projects with lower capital requirements when compared to direct personal investments. Direct investments: Investing directly in real estate might mean purchasing homes and flipping them or renting these spaces out to tenants. Of course, this investment method provides more direct control but comes with high upfront requirements. Should You Invest in REITs for Dividends? REITs are attractive investment options for those looking to create dividend income streams. While it's true that REITs show some of the highest dividend yields when compared to other stocks, these high yields may sometimes create a dividend trap for investors, cutting dividends shortly after a stock's price dips. Examine dividend history and the number of consecutive years the stock has raised its dividend to ensure you make smart long-term choices about these specialty funds. FAQs What are specialty REITs, and how do they influence your portfolio? If you have last-minute questions about specialty REITs, the following FAQ will clear them up before you invest. What is the highest-paying REIT? The company that pays the highest dividend yield percentage may vary depending on stock price volatility and market changes. Orchid Island Capital NYSE: ORC is one of the largest major REITs with a high dividend. The company maintains a dividend yield of about 18%, higher than competitors. What are the top five REITs? The top five REITs in order of market capitalization are Prologis NYSE: PLD, American Tower NYSE: AMT, Equinix NASDAQ: EQIX, Public Storage NYSE: PSA and Crown Castle NYSE: CCI. These companies all showcase market capitalization of at least $45 billion and trade on major exchanges like normal shares of stock. Why do investors buy REITs? There are many reasons why an investor might want to add REITs to their portfolio. These companies are one of the only types required to pay out dividends to investors, creating a reliable stream of passive income. These investments also offer a way to gain exposure to the real estate market without the responsibilities of a direct property investment.