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Die Aktien von SpaceX stiegen um 19% bei ihrem Börsendebüt.

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Waymo, Alphabet's autonomous driving unit, acquired Apple's former self driving test facility in Arizona, expanding its access to a dedicated proving ground. Alphabet (NasdaqGS:GOOGL) is playing a central role in Anthropic's US$35b AI data center financing, supplying chips and acting as a financial guarantor. These moves link Alphabet more closely to both physical mobility networks and large scale AI infrastructure build outs.

Alphabet, through Waymo and Google Cloud, now touches two core parts of the AI story: on the road and in the data center. Waymo's new Arizona facility adds controlled testing capacity for robotaxis at a time when autonomous driving projects are competing for real world mileage, regulatory attention and reliable safety records.

On the AI side, Alphabet's chip supply and guarantees for Anthropic's US$35b data center plan put the company deeper into the stack that underpins training and running advanced models. For you as an investor, a key question is how this mix of capital heavy infrastructure ties, long term AI partnerships and autonomous vehicle testing affects Alphabet's risk profile and business mix over time.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.NasdaqGS:GOOGL Earnings & Revenue Growth as at Jun 2026

3 things going right for Alphabet that this headline doesn't cover.

Waymo's purchase of Apple's former Arizona proving ground and Alphabet's role in Anthropic's US$35b data center financing both point to the same thing for you as a shareholder: a deeper commitment to capital heavy AI infrastructure and applied autonomy. The Arizona facility gives Waymo a controlled environment to test complex city, highway and edge cases at scale, which can be important for regulators and partners assessing safety records. On the cloud side, backing Anthropic's leases and supplying the chips ties Google Cloud more tightly to a large third party AI model provider, while also increasing Alphabet's exposure to long dated compute contracts.

How This Fits Into The Alphabet Narrative

The Anthropic financing and Waymo expansion line up with the narrative that Alphabet is building a full stack AI platform, from TPUs and data centers to applied services like Gemini and autonomous driving. Both moves also underline concerns already raised in the narrative about heavy infrastructure spending and unprofitable new ventures, since robotaxis and multi year AI capacity deals can weigh on margins if monetization lags. The specific risk of Alphabet acting as a financial guarantor for third party data center leases is not fully spelled out in the narrative, even though it can affect Alphabet's risk sharing with partners like Anthropic.

Story Continues

Knowing what a company is worth starts with understanding its story.Check out one of the top narratives in the Simply Wall St Community for Alphabet to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Large, long term guarantees around Anthropic's data center leases increase Alphabet's exposure if Anthropic's usage, pricing or funding environment changes, especially as other hyperscalers like Microsoft and Amazon also compete for AI workloads. ⚠️ Waymo's expanded testing footprint can add ongoing costs in a business that has generated operating losses and faces regulatory, safety and competitive pressure from players such as Tesla and General Motors' Cruise unit. 🎁 Deeper integration with Anthropic's AI stack can support Google Cloud's position when enterprises choose between providers, potentially reinforcing demand for Alphabet's custom chips and AI services in a market that includes Amazon Web Services and Microsoft Azure. 🎁 The dedicated Arizona proving ground may help Waymo collect higher quality safety and performance data, which can be valuable when seeking approvals, partners or commercial agreements in robotaxis and logistics.

What To Watch Going Forward

From here, keep an eye on how Alphabet discloses the scale and terms of its Anthropic related guarantees, including any impact on balance sheet commitments and cash flows, and how much Anthropic contributes to Google Cloud usage. For Waymo, watch for updates on regulatory milestones, partnership deals, and any detail on how often the Arizona site is used relative to on road testing. Comparing Alphabet's AI and autonomous vehicle spending to reported profitability and cash generation over time will help you judge whether these partnerships and acquisitions are strengthening the overall business mix or stretching returns on capital.

To ensure you're always in the loop on how the latest news impacts the investment narrative for Alphabet, head to the community page for Alphabet to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GOOGL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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CAs of midday, the S&P 500(SNPINDEX:^GSPC) rose 0.12% to 7,403.38, the Nasdaq Composite(NASDAQINDEX:^IXIC) dropped 0.36% to 25,716.64 as SpaceX’s (NASDAQ: SPCX) IPO kept risk appetite elevated in a volatile morning of trading. The IPO kept risk appetite elevated in a volatile morning of trading. The Dow Jones Industrial Average(DJINDICES:^DJI) climbed 0.38% to 51,040.07 as oil slid amid growing Iran peace deal hopes.

Market movers

Artificial intelligence (AI) infrastructure and cloud names had a volatile morning as the SpaceX IPO rocked the Nasdaq. At midday, the stock had surged almost 20% to $161.33 just hours after listing. Tech giants, Nvidia, Apple, Microsoft, and Broadcom all slipped as the mega-IPO pressured the market.

What this means for investors

The SpaceX IPO took center stage as the $75 billion offering entered the history books. Initial trading in the space-AI-communications firm showed strong demand, though some investors are skeptical that a loss-making company warrants such a high valuation.

This morning’s choppy trading could be a sign of things to come, say strategists at 22V Research. There are growing signs that conviction in mega tech stocks is fading, and that may lead to further sharp swings as investors rotate between tech and value stocks.

Oil prices dropped on growing expectations that the U.S. and Iran might reach a deal and reopen the Strait of Hormuz. WTI crude oil fell below $85 a barrel for the first time since mid-April. Improving U.S. consumer sentiment also boosted stocks: June data from the University of Michigan showed that easing gas prices had reduced some of the pressure on people’s wallets.

Should you buy stock in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!

Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 12, 2026.

Emma Newbery has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Broadcom, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Waymo has acquired Apple's Arizona self-driving proving ground, marking Apple's full exit from its autonomous car efforts. The move closes the chapter on Apple's long-running "Project Titan" and ends its direct participation in the robotaxi space. The sale highlights a shift in focus for NasdaqGS:AAPL away from vehicle manufacturing and dedicated robotaxi platforms.

For you as an investor, this is a clear reminder that NasdaqGS:AAPL remains primarily a consumer hardware, software, and services company rather than an auto manufacturer. The conclusion of Project Titan draws a line under years of speculation about a possible Apple-branded car and concentrates attention back on the company’s existing product ecosystem and other research priorities.

Looking ahead, this exit simplifies the story around where NasdaqGS:AAPL is committing resources and management attention. It may help you focus more on how the company allocates its research budget across categories like devices, services, and new computing platforms, instead of factoring a potential car business into long term expectations.

Stay updated on the most important news stories for Apple by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Apple.NasdaqGS:AAPL Earnings & Revenue Growth as at Jun 2026

We've flagged 1 risk for Apple. See which could impact your investment.

Waymo taking over Apple’s Arizona self-driving proving ground is more than a real estate deal; it is a clean break from a capital-intensive project that sat well outside Apple’s core strengths in tightly integrated consumer devices and software. For you, that means one less variable to factor in when weighing how NasdaqGS:AAPL uses its multi billion dollar R&D budget. Instead of funding a separate robotaxi platform in direct competition with Alphabet’s Waymo and General Motors’ Cruise, Apple is leaning further into areas where it already has scale, such as Apple Intelligence, Siri AI, and developer tools like Xcode 27. The sale also underlines that Apple is comfortable letting partners such as Alphabet and Nvidia carry more of the heavy lifting in autonomous driving and cloud AI infrastructure, while it concentrates on user experience, privacy, and monetizing its installed base. That simplifies the thesis you are assessing, from “Apple plus a potential car company” to “Apple as a device and services platform that selectively partners in categories like robotaxis instead of owning them end to end.”

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How This Fits Into The Apple Narrative

Exiting Project Titan is consistent with the narrative that Apple is prioritizing high margin services, AI powered features, and its existing hardware ecosystem over building entirely new heavy manufacturing businesses. The decision challenges any expectation in the narrative that Apple would use a vertically integrated car project as a major future earnings driver, instead leaving that arena to players like Alphabet’s Waymo and Tesla. The narrative already highlights AI and services as key catalysts, but this sale adds a specific data point that Apple is willing to walk away from large non core bets when they do not align with that focus.

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Apple to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Apple is giving up any direct exposure to autonomous vehicle platforms, so if robotaxis scale rapidly under competitors like Alphabet, Tesla or GM, Apple could be viewed as missing a category that ties closely to mobility and mapping. ⚠️ The Project Titan wind down follows years of spend and signals that large scale experiments can end without a commercial product, which some investors may read as execution risk when Apple explores future categories. 🎁 Stepping away from car development removes a long term cash and management drain, allowing Apple to concentrate capital on areas already central to the thesis such as Apple Intelligence, Siri AI and services tied to its 2.5b plus device base. 🎁 By ceding the proving ground to Waymo, Apple keeps indirect exposure to autonomous driving through its partnership model with Alphabet while keeping its own balance sheet and operations focused on software, silicon and integrated devices.

What To Watch Going Forward

From here, it is worth tracking how Apple redeploys the R&D and talent that once sat inside Project Titan, particularly into AI powered features, new device formats and services. Watch for any references on earnings calls to changes in long term capital commitments now that vehicle development is off the table, and how Apple positions its mapping, CarPlay and Siri AI offerings alongside autonomous efforts from Alphabet, Tesla and others. The key question is whether Apple can keep deep in car related user experiences through software and partnerships without owning the vehicle platform itself.

To ensure you're always in the loop on how the latest news impacts the investment narrative for Apple, head to the community page for Apple to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AAPL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Against a backdrop of soaring growth stocks in an environment still dominated by chatter of SpaceX's initial public offering (IPO), it seems a little out of place to be discussing potential dividend stocks to buy. That's even more so the case given that the persistent bull market has pared dividend yields back by quite a bit lately; the S&P 500's average trailing dividend yield currently stands at a multidecade low of just above 1%.

If income is your primary investment goal, there's still every reason to look for such names. And fortunately, there are plenty of compelling ones with strong yields to consider. The S&P 500's overall average dividend yield is unusually low simply because the index's very biggest constituents like Nvidia and Apple pay very little in dividends, if they pay them at all.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

To this end, here's a closer look at three dividend stocks you can comfortably buy right now with plans of holding onto them forever.

PepsiCo

There's no denying beverage behemoth Coca-Cola (NYSE: KO) outmatches smaller rival PepsiCo (NASDAQ: PEP) in several ways, including sales, name recognition, and yes, even popularity among income investors; the market appreciates Coca-Cola's 64-year streak of per-share payment growth. (That makes KO a Dividend King, a company that has increased its annual dividend for at least 50 consecutive years.)

There's an important detail that investors picking one of these companies over the other should consider. That is, while KO's forward-looking dividend yield is a solid 2.6%, PepsiCo's is considerably better at 4.1%.

But are Coca-Cola's pedigree and stature worth the trade-off? For that matter, isn't PepsiCo's yield so high right now precisely because the stock has underperformed since 2023 amid inflationary headwinds?

These are legitimate points to be sure. PepsiCo isn't exactly a slouch on the pedigree front. It's now upped its per-share payout for a similarly impressive 54 consecutive years often times at a pace faster than Coca-Cola. As for the stock's recent subpar performance, the underpinnings of that headwind are largely in the rearview mirror. Last quarter's organic revenue was up 2.6% year over year, reflecting a combination of product innovation and smarter pricing strategies. For instance, the company is more prominently featuring its Lay's potato chips made using healthier oils and now offers lower-sugar versions of its Gatorade sports drink.

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None of these initiatives will produce earth-shattering results. All of them will -- and are -- yielding incremental improvements in its business and should continue doing so.

There's been little to no apparent impact on the stock yet, although it's arguable that much of PEP's weakness since early March just reflects greater interest in more aggressive growth stocks. As that interest cools, look for PEP to start performing again.

Enbridge

You undoubtedly know the military conflict in the Middle East has disrupted oil and gas supply chains, inflating prices of both. Although it's a superficial and instant profit boon for integrated explorers, drillers, and refiners like Chevron and Exxon-Mobil, in the long run it's also arguably damaging just because it incentivizes the use of less-volatile alternatives. It also sets the stage for a big profit dip once crude prices normalize again.

There's one aspect of the energy business that's largely unimpacted by soaring and tumbling prices of oil and gas -- the companies that simply deliver them from point A to point B, charging for their services like a tollbooth regardless of the price of the gas or oil transported through its distribution network.

Enbridge (NYSE: ENB) is one of these companies. It owns and operates over 18,000 miles of crude oil pipeline across North America and over 19,000 miles of natural gas pipelines. If you use gasoline or natural gas, there's a good chance you rely on Enbridge without even realizing it.Image source: Getty Images.

Sure, there will come a time when the world finally weans itself from fossil fuels like crude oil, winding down Enbridge's pipeline business. That time is many, many years down the road though. The International Energy Administration doesn't expect the "peak oil" pivot to happen until 2050, with demand and consumption likely to keep rising until then.

To the extent the headwinds of alternative and renewable energy start blowing before then, Enbridge is developing wind farms, solar power facilities, geothermal assets, and battery-storage solutions. In the meantime, its gas and oil tollbooth business remains ideally suited to support dividend payments. You can plug into them while the stock's forward-looking dividend yield stands at just under 5%.

Brookfield Asset Management

Finally, add Brookfield Asset Management (NYSE: BAM) to your list of dividend stocks to buy and hold forever while you can step in at a solid yield of 4.4%.

As you might guess, Brookfield is an investment manager. You may even own some of the funds it manages, like Brookfield Infrastructure Partners, Brookfield Renewable Partners, or Brookfield Business Corporation. These instruments trade like stocks or exchange-traded funds (ETFs), but they actually have privately held stakes in several high-demand businesses, such as mobile phone towers, utility companies, solar power farms, and data centers. Brookfield Asset Management manages the managers of these focused investment pools, collecting a recurring quarterly fee for doing so.

At first blush, it looks a lot like any other asset manager (mutual funds and ETFs), and in many regards, it is. But it's also a standout in a couple of important ways.

One of those ways is selecting the areas where it decides to focus its time and resources. As noted, Brookfield is focusing on reliable growth opportunities rather than businesses with little to no meaningful upside.

The other way this prospect differs is that it bypasses the stock market and its occasionally steep valuations, which often lead to poor performance. Brookfield's divisions are built from the ground up on privately held stakes in cash cows that don't have such valuations to create volatility. This allows its managers to focus on developing quality businesses for the long haul without misguided, short-term interference even as they produce reliable cash flow.

The model works too and will likely continue working. The company doesn't mind setting high expectations from shareholders either; it's targeting average annual growth of between 15% and 20%, most of which will come in the form of dividends. To this end, BAM's quarterly dividend has grown 57% just since it started paying dividends in 2023.

Should you buy stock in Enbridge right now?

Before you buy stock in Enbridge, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $438,283! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,257,427!

Now, it's worth noting Stock Advisor's total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 12, 2026.

James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Apple, Brookfield Asset Management, Chevron, Enbridge, and Nvidia. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

3 Dividend Stocks You Can Buy and Hold Forever was originally published by The Motley Fool

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Key Points

S&P 500 earnings growth is forecast to come in at 22% in 2026 and 15% in 2027. Much of that is expected to be driven by artificial intelligence (AI) infrastructure development. The Invesco S&P 500 Quality ETF (SPHQ) enhances portfolio exposure to these healthy growth names.10 stocks we like better than Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Quality ETF ›

For most investors, simply investing in the S&P 500 has delivered strong returns over the past several years. Its high-tech concentration has kept investors in the themes that are leading the market higher.

But with inflation risks rising, consumer sentiment low, and GDP growth slowing, it's time to evaluate whether the future can look like the past. Investing in broad-market ETFs, such as the Vanguard S&P 500 ETF(NYSEMKT: VOO), has worked for a while.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

But investors might need to be more selective going forward. Here's one option for investors to consider.

It's time to focus on quality

The one thing we're very likely to keep seeing over the next 12 to 18 months is an artificial intelligence (AI)-fueled earnings and revenue boom. In Q1 2026, S&P 500 earnings grew by more than 28% year over year, the best number since 2021.

The next several quarters could look similarly strong. Full-year 2026 earnings growth is currently forecast at around 22%. 2027 could see another 15% earnings growth on top of that. In both years, the tech sector is likely to drive the gains.

Image source: Getty Images.

That means investors should be looking to upgrade their exposure to these earnings success stories. I'm not talking about adding a pure tech ETF because that's where the biggest earnings growth is coming from. I'm talking about focusing more directly on these high-quality earnings growers -- the companies with healthy balance sheets and the ability to grow in multiple economic environments.

That's why I'm looking at the Invesco S&P 500 Quality ETF(NYSEMKT: SPHQ). It targets three fundamental measures in its selection process: return on equity (ROE), the accruals ratio, and the financial leverage ratio. This helps weed out some of the weaker S&P 500 components and lean heavier into the leaders.

SPHQ: Performance and key metrics MetricSPHQVOOExpense ratio0.15%0.03%Assets under management$18.9 billion$991.3 billionNumber of holdings100505Three-year return (annualized)22.1%21.3%Five-year return (annualized)14.3%13.4%Top sectorsTech (34%), industrials (23%), consumer staples (14%)Tech (35%), financials (12%), communication services (11%)Top holdingsLAM Research (4.9%), Apple (4.6%), GE Aerospace (4.5%)Nvidia (7.9%), Apple (6.5%), Alphabet (6.5%)

Data sources: Invesco, Vanguard.

The Invesco S&P 500 Quality ETF maintains the heavy tech exposure of the broader index, but it's also more broadly diversified beyond that. The strong overweight to industrial and consumer staples stocks gives it a different risk/reward profile, but one that pairs nicely with traditional S&P 500 funds.

Enough economic wild cards are looming in the background right now that any sudden surprise could send the stock market lower at a moment's notice. That's especially the case for more financially vulnerable businesses.

By focusing on the higher-quality ones, you accomplish two things. You get heavy exposure to the companies that are driving earnings and stock market growth right now. And you help insulate yourself from any eventual slowdown.

Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Quality ETF right now?

Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Quality ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Quality ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $438,283! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!

Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 12, 2026.

David Dierking has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, GE Aerospace, Lam Research, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Quick Read

SPHQ filters the lowest-quality third of S&P 500 names and returned 309% over 10 years, nearly matching SPY's 316% while avoiding weak balance sheets. Apple's 141% return on equity and Microsoft's 34% ROE make them natural anchors that quality screens are designed to keep and overweight. For taxable accounts with large embedded SPY gains, redirecting new contributions to a quality ETF beats selling and triggering a decade of capital gains taxes. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and iShares MSCI USA Quality Factor ETF didn't make the cut. Grab the names FREE today.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is the default core holding for tens of millions of investors. It tracks the S&P 500, charges 0.0945% in expenses, pays a 1.25% dividend yield, and has returned about 314% over the past decade on a price basis. The pitch is simple: own the 500 largest U.S. companies for almost nothing and let market-cap weighting work.Deemerwha studio / Shutterstock.com

Two funds run a different rule on the same names. The Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) and the iShares MSCI USA Quality Factor ETF (NYSEARCA:QUAL) keep only the companies that score well on financial strength, the so-called "S&P 500 minus the junk." The surprise is what that screen has not done: beat the index over ten years. It offers a different exposure, not a higher return.

What SPY Actually Holds

SPY weights its roughly 505 holdings by market capitalization, which concentrates the fund at the top and forces it to carry the bottom regardless of fundamentals. NVIDIA at 7.8%, Apple (NASDAQ:AAPL) at 6.8%, and Microsoft (NASDAQ:MSFT) at 4.7% make up nearly a fifth of the fund, and Information Technology is 37% of it. The tail behind them includes companies with negative free cash flow, weak returns on equity, and high leverage. SPY owns them by market value, not financial health. That is the gap a quality screen tries to close.

The Quality Screen, and What It Actually Returned

SPHQ starts with the same S&P 500 universe and keeps only the 100 names that score best on return on equity, accruals, and financial leverage. QUAL applies similar logic across a broader large- and mid-cap universe, screening within each sector to stay roughly sector-neutral.

The numbers are the catch. Over the past ten years, SPY returned about 314%, or 15.49% a year. SPHQ returned about 302%, or 14.91% a year. QUAL returned about 14.27% a year, the lowest of the three. Both quality funds tracked the index closely, and both finished a step behind it. Removing the weakest names did not add return over this stretch. It roughly matched the index while tilting toward financial strength.

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So Why Own It

The case for a quality screen is not a higher ten-year number. It is the exposure. These funds concentrate capital in companies with durable returns on capital and clean balance sheets, which tend to hold up better when the earnings cycle turns and weaker businesses get punished. That edge stayed hidden in a decade-long bull market that rewarded almost everything.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and iShares MSCI USA Quality Factor ETF didn't make the cut. Grab the names FREE today.

There is also a live signal. So far in 2026, SPHQ has pulled ahead of SPY, 13.21% against the index's 9.64% year to date. One stretch is not a trend, but it is the choppier, more selective market where a quality tilt is meant to earn its keep.

The Tradeoffs to Weigh

The swap is not free. SPHQ and QUAL both charge 0.15% against SPY's 0.0945%, a gap of about 5.5 basis points, or roughly $55 a year on $100,000. The income is lower too: QUAL yields 0.86% against SPY's 1.25%, a small haircut for anyone leaning on the portfolio for cash.

They also run more concentrated and pricier. QUAL holds about 44% of its weight in its top ten names and trades near a 28 P/E. That premium drives the strategy in good times and drags when the market rotates toward cheaper, beaten-down names. And do not assume lower risk: over the past decade SPHQ actually ran higher volatility than SPY, so a quality label is not a safety guarantee.

How to Make the Swap

In a tax-advantaged account, the switch is mechanical: sell SPY, buy SPHQ or QUAL, zero tax cost. In a taxable account, the math changes. An investor who bought SPY in 2016 sits on roughly 314% of embedded gain, and a full sale realizes long-term capital gains on all of it. The cleaner path is to stop adding to SPY, route new contributions to the quality fund, and swap inside an IRA first if you hold SPY in both account types.

Where This Leaves the Decision

SPY remains the cheapest, deepest, most liquid way to own the S&P 500, and over the last ten years it also delivered the higher return. A quality screen did not beat it; it tracked the index while tilting toward stronger balance sheets. That makes SPHQ or QUAL a reasonable choice for an investor who wants a quality factor and believes it pays off in a more selective market, not for one expecting a bigger ten-year number. SPHQ is the closer analog to a cleaned-up SPY and is leading in 2026; QUAL is the sector-balanced version. For most investors who simply want the index, SPY is hard to beat.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and iShares MSCI USA Quality Factor ETF didn't make the cut. Grab the names FREE today.

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Apple AAPL is benefiting from the rapid expansion and diversification of the Services business, which has become a key growth driver of the company’s performance. In the second quarter of fiscal 2026, Services contributed 27.9% of total net sales, with revenues rising 16.3% year over year to $30.98 billion, which was a record in Apple’s history.

This robust performance was broad-based, with double-digit growth in both developed and emerging markets and new all-time revenue records across most Services categories. The Services segment now includes offerings such as Apple TV, Apple Music, iCloud, the App Store, Apple Pay and new enterprise solutions, all of which are supported by Apple’s vast installed base of over 2.5 billion active devices.

The company continues to integrate new features and expand the breadth of its services. Apple recently unveiled a range of AI-powered enhancements across its services, set to arrive with its 2027 software releases this fall. Key updates include richer Flyover views and Local Lists in Apple Maps, more flexible item-sharing in Find My and Apple Cash bill-splitting powered by Visual Intelligence.

Apple is also expanding video podcast support on Mac and tvOS, redesigning Shared Albums in iCloud and introducing a new Apple Fitness+ program. The updates aim to make Apple’s ecosystem more intelligent, personalized and collaborative while improving everyday experiences across navigation, payments, media, cloud storage and fitness services.

Apple’s Services business is on a strong upward trajectory, driven by ecosystem expansion, innovation and a focus on both consumer and enterprise needs. For the June quarter, management expects Services to grow at a similar year-over-year rate to the March quarter after removing the favorable impact from foreign exchange.

Apple Faces Stiff Competition

Apple is suffering from stiff competition from the likes of Netflix NFLX and Disney DIS. Both Netflix and Disney are expanding their footprint in domains like streaming and gaming.

Netflix is expanding its service offerings by investing in podcasts, live sports events and gaming, including a new kids’ gaming app called Netflix Playground. The company is also leveraging technology like AI to enhance content creation and user experience.

Disney is benefiting from its streaming segment, which has achieved a remarkable transformation, delivering sustainable profitability. The combined Disney+ and Hulu platform now generates consistent operating income, driven by disciplined pricing strategies and robust subscriber engagement. Entertainment SVOD revenues grew 13% year over year to $5.49 billion in the second quarter of fiscal 2026, while Entertainment SVOD operating income surged 88% to $582 million. The integration of Hulu content into Disney+ creates a comprehensive entertainment ecosystem that enhances customer retention and reduces churn.

Story Continues

AAPL’s Share Price Performance, Valuation & Estimates

Apple shares have gained 8.8% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 13.2%.

AAPL Stock PerformanceZacks Investment Research

Image Source: Zacks Investment Research

AAPL stock is trading at a premium, with forward 12-month price/earnings of 31.78X compared with the Computer and Technology sector’s 24.01X. AAPL has a Value Score of F.

AAPL ValuationZacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.75 per share, which has increased by a couple of pennies over the past 30 days. This suggests 17.29% year-over-year growth.

Apple Inc. Price and ConsensusApple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Apple Inc. (NASDAQ:AAPL) was among the stocks Jim Cramer commented on, saying that tech stocks cannot be trusted to lead anymore. Talking about tech companies that would be able to get out of "out of this morass," Cramer said:

And then the next one is Apple. Still has a balance sheet that's fantastic. Still has the buyback. It still has products we all love.

Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company's app ecosystem, AppleCare, and cloud tools. Cramer discussed the stock's recent pullback during the June 8 episode. The Mad Money host stated:

That pullback in the stock of Apple today. Of the big-cap stocks, Apple had been the cleanest story. It didn't have to spend big on artificial intelligence. They had Alphabet to do it for them, and they're being paid for doing so because they have such an outstanding and deserved user base. When you have 2.5 billion devices out there, there's a much sought-after audience, right, and the scrum that is Perplexity, Claude, Gemini, Grok, ChatGPT, Meta AI, you can cement your relevancy by making a deal with Apple, and that's why Google paid them to be their search function. We don't know the terms of the AI deal, but I think that Apple did fabulously on the whole package that now includes Gemini as Siri… When I say as Siri, what I mean is that Siri's gotten much smarter.

How about that? Apple, is it done, and there are no more improvements? That's what I kept hearing today: it's done. Well, that's just plain stupid. It's going to get better and better. No one's going to switch from this phone because they were disappointed by today's Worldwide Developers Conference, except for the hedge fund guys and gals who watch our network and said, oh, it's really bad. I mean, it wasn't even a tradable event, although people tried to trade it, and the traders are the losers, not Apple. That said, Apple's a leader, maybe the leader, and I don't want to lose the leader of this stock market. We've lost all the other mega-cap stocks now. Forgive me for wanting one of them to keep winning because I do think Apple could have gone higher on the same info we got today. I wanted it to open down and then rally.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

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Meta Platforms, Inc. (NASDAQ:META) was among the stocks Jim Cramer commented on, saying that tech stocks cannot be trusted to lead anymore. Cramer mentioned the company while discussing the Magnificent Seven, as he commented:

The hallmark of the Magnificent Seven: bulletproof balance sheets. That's what allowed them to have these robust buybacks. They were tight. They tended not to cascade. These were huge companies, but there wasn't ever a lot of stock for sale… Now, with the exception of Apple and NVIDIA, we have stretched balance sheets galore. Alphabet, after years of buying back stock, issued stock. They might not be the only one of the Seven that needs to raise money. Look, I can make a case that Amazon, Meta, Microsoft, all might want to sell some equity. If I were running the show, I don't know, I don't want to show up at a hyperscaler gunfight with a pen knife. Is there still scarcity value in big tech? Not after SpaceX, then Anthropic and OpenAI, one after another after another.

Photo by Alexander Shatov on Unsplash

Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company's portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and virtual and augmented reality products.

While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

Disclosure: None. Follow Insider Monkey on Google News.

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