OP Wire 5/9 (OP – Lite)

U.S. Stock Futures Dip, Arm Holdings’ Outlook Falls Short, Robinhood Surges on Earnings Beat

Wall Street Overview:

U.S. stock futures edged lower Thursday, following a mixed performance in the prior session. Investors continue to digest fresh corporate earnings while assessing the Federal Reserve’s monetary policy path. The Dow Jones Industrial Average notched its sixth consecutive positive session on Wednesday, while the S&P 500 ended unchanged and the Nasdaq Composite slipped by 0.2%. Shares of tech giants Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA) were particularly affected, with 10-year Treasury yields rising and dampening expectations of imminent interest rate cuts by the Fed.

Looking ahead, analysts are keenly eyeing the consumer price data release on May 15, a significant gauge of inflation.

Arm Holdings:

Arm Holdings’ shares dipped in after-hours trading as the chip designer issued a revenue forecast for its 2024 fiscal year that missed estimates. Despite robust investment in artificial intelligence, Arm forecast revenue of $3.8 billion to $4.1 billion, shy of the expected $4.01 billion.

However, the company’s fiscal fourth-quarter earnings exceeded expectations, with an adjusted EPS of $0.36 and revenue of $928 million, beating Wall Street estimates of $0.21 EPS and $780.2 million in revenue. License revenue surged 60% year-over-year to $414 million, driven by high-value agreements focused on AI. Despite a cautious outlook, Arm’s stock remains strong since its IPO, with a current market capitalization of over $109 billion.

Robinhood:

Robinhood’s shares surged after hours on Wednesday following impressive Q1 results. The trading platform operator posted EPS of $0.18, well above the expected $0.05, with revenue reaching $618 million, surpassing projections of $543.14 million.

Net interest revenue was lifted by higher crypto trading volumes and borrowing costs, pushing adjusted core income up 115% year-over-year to $247 million. CEO Vlad Tenev highlighted the company’s focused execution on product innovation. Mizuho analysts called it a “better-than-expected” first quarter.

China’s Trade Surge:

China’s exports grew by 1.5% year-on-year in April, surpassing expectations of a 1% rise, signaling strengthening momentum in the nation’s manufacturing sector. Imports also rebounded with an 8.4% surge, beating forecasts and recovering from a March decline. This rebound hints at a potential revival in domestic demand.

Oil Market Impact:

Crude prices rose Thursday on the back of promising Chinese trade data and declining U.S. crude inventories. As China is the world’s largest oil importer, this positive trade performance bolstered the market’s confidence in broader economic recovery.

$AAPL- BofA analyst Wamsi Mohan notes that data on developer revenues from SensorTower shows that Apple’s App Store revenues after 37 days of fiscal Q3 have increased to $3.0B, or up 10% year-over-year, while noting that App store revenue is reported to have increased 9% year-over-year globally and 4% year-over-year in China for the month of April. BofA maintains a Buy rating and $230 price target on Apple shares.

$TSLA- Tesla’s Head of Product Rich Otto announced on LinkedIn that he has resigned from the company after expressing concerns over the company’s recent layoffs. Otto joined Tesla in 2017. “The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance and it’s hard to see the long-game. It was time for a change,” Otto said.

Warner Bros. Discovery states: “Today, Disney Entertainment (DIS) and Warner Bros. Discovery (WBD) announced a new streaming bundle that includes Disney+, Hulu and Max. Beginning this Summer in the U.S, the streaming services will be offered together, providing subscribers with the best value in entertainment and an unprecedented selection of content from the biggest and most beloved brands in entertainment including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Warner Bros., and many more. The new bundle will be available for purchase on any of the three streaming platform’s websites offered as both an ad-supported and ad-free plan.”

Hey OP…. Another great day yesterday as OP wire / chat play plans paid and all the other OP systems paid including GG (well over 100% gain)

Today I’ll be adding to my BABA long LEAPS and buying any dips on SBUX for scalps as I add cost free LEAPS there too. 

See you all in chat 

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