QQQ Stock Recent News

The Global X Nasdaq 100 Covered Call ETF (QYLD) aims to generate income by selling call options on Nasdaq 100 stocks. QYLD offers monthly distributions and can provide protection during market downturns, but caps potential gains in strong bull markets. The fund's focus on tech stocks exposes it to sector-specific risks, and its higher expense ratio (0.61%) can impact net returns.

The Invesco QQQ trades at 26.89x forward earnings and 21.29x trailing cash flow. Although these ratios are high, they're still below most other large-cap growth ETFs. QQQ's valuation is at least partially justified, evidenced by its stronger growth, quality, momentum, and sentiment features. This analysis provides supporting fundamental metrics for this conclusion. Risks include downward-trending earnings surprises, which historically have accompanied recessions or value re-ratings, like in 2022. In particular, Nvidia's 5.66% surprise was the lowest since October 2022.

Investors should be flexible and keep an open mind about the market. Current metrics favor a continued bull market, but savvy investors prepare for either outcome.

Jeff Kilburg, KKM Financial founder, joins 'Power Lunch' to discuss not buying into the market bounce.

When previously high-flying mega-cap artificial intelligence equities slumped in late July/early August, many market observers stated that the technology's “show me” moment had arrived. What that means is that analysts and investors are starting to a demand much more from AI enablers and adopters than just long-term hope.

The Invesco QQQ Trust's largest components - Apple, Microsoft, and NVIDIA - trade at such extreme multiples that it's hard to picture them rising in the near term. Invesco itself estimates that the fund's holdings have a 38.88 average P/E ratio. It's extremely uncommon for indexes to hold multiples that steep for long periods of time.

On Tuesday, Tradr ETFs hit the ground running by launching an expansive series of new leveraged ETF products.  Traditionally, most leveraged ETF products reset on a daily basis.

QQQ's strong fundamentals and higher margins justify a "Hold" rating, while SPY's rate sensitivity and growth outlook support a "Buy" rating. Election and upcoming Fed meeting are catalysts; SPY and QQQ trade at high valuations with accelerating growth forecasts. A robust labor market supports consumer spending; SPY is likely to benefit more from rate cuts, while regulatory risks affect SPY more than QQQ.

Interest rates have fallen, benefiting leveraged closed-end funds like Columbia Seligman Premium Technology Growth Fund, which invests in tech stocks and uses an options strategy for downside protection. STK generally tracks the Nasdaq 100 ETF but has underperformed during market corrections and has higher seasonal risks. Despite a solid long-term track record and attractive valuation, STK's mixed relative performance history warrants a hold rating.

Both the Invesco QQQ Trust and the Fidelity Nasdaq Composite Index ETF can give you passive exposure to the tech-heavy Nasdaq. Both ETFs have similar expenses.