Microsoft Takes Back the Lead… for Now
Microsoft has regained its title as the world’s most valuable company after Nvidia’s shares declined by over 3% on Thursday. Nvidia which surpassed Microsoft on Tuesday, saw its market capitalization drop by over $100 billion, closing with a market value of $3.21 trillion. Microsoft’s market value also slipped slightly to $3.31 trillion during Thursday’s session. This leaves Microsoft, Nvidia, and Apple in a tight race, with Apple’s market cap at $3.22 trillion.
However, Nvidia’s stock has nearly tripled this year, reflecting its pivotal role in the AI revolution. Nvidia is projected to see its revenues double this fiscal year to $120 billion and rise to $160 billion the following year.
Wedbush analysts noted that Nvidia’s GPUs are critical for AI applications, making them highly valuable. They predict a significant increase in AI adoption over the next few years, leading to substantial AI spending.
Futures Flat Ahead of Key Activity Data
U.S. stock futures were largely unchanged on Friday, ahead of significant activity data releases. As of 04:00 ET (08:00 GMT), Dow futures were down 60 points, S&P 500 futures dropped 4 points, and Nasdaq 100 futures rose by 10 points. Losses in Nvidia weighed on both the S&P 500 and Nasdaq Composite on Thursday, while the Dow Jones Industrial Average saw its best day this month. All three major averages are on track for weekly gains, with the S&P 500 up 0.8%, the Nasdaq up 0.2%, and the DJIA up 1.4%.
Boeing Nears Deal to Buy Back Spirit AeroSystems
Boeing (NYSE
) is close to finalizing a deal to repurchase Spirit AeroSystems, its former subsidiary. Negotiations began earlier this year but faced challenges due to Spirit’s work for Airbus. However, progress has been made, and the companies have largely divided Spirit’s programs between them. Boeing’s move aims to stabilize its supply chain following a 737 MAX incident in January.
British Public Debt Soars
As the U.K. election approaches, data shows British public debt rose to its highest share of the economy since 1961, hitting 99.8% of GDP in May. Both major political parties have pledged to adhere to current budget rules and avoid major tax increases despite these financial challenges.
Crude Set for Weekly Gains
Crude prices were marginally lower on Friday but set for a second week of gains, driven by strong U.S. demand. U.S. crude futures traded at $81.09 per barrel, while Brent was at $85.50 per barrel. Data showed a significant drawdown in U.S. crude stockpiles, suggesting robust demand during the summer driving season.
Join us for a LIVE session next Wednesday at 7 PM EST to cover the current market and participate in a Q&A session open to all OptionsPlayers.com members. Link for access to come.
$PATH-Â Wells Fargo lowered the firm’s price target on UiPath to $14 from $15 and keeps an Equal Weight rating on the shares. The firm noted UiPath’s established position in robotic process automation, though there remains some uncertainty around where the growth/margin profile ultimately settles.
$JNJ- Johnson & Johnson announced that it has successfully completed the acquisition of Proteologix, a privately-held biotechnology company focused on bispecific antibodies for immune-mediated diseases, for $850 million in cash with potential for an additional milestone payment, as announced on May 16, 2024. “We look forward to continuing the development of PX-128 and PX-130 alongside the Proteologix team as they join Johnson & Johnson,” said David Lee, Global Immunology Therapeutic Area Head, Johnson & Johnson Innovative Medicine. “These two bispecific antibodies have the potential to become best in disease therapeutics for people living with moderate to severe atopic dermatitis and asthma by targeting multiple disease-driving pathways. We are thrilled to start integrating them into our industry leading Immunology portfoli
$SNOW- Wells Fargo analyst Michael Turrin lowered the firm’s price target on Snowflake to $200 from $225 and keeps an Overweight rating on the shares. The firm acknowledges that shares are at a premium and likely range bound near-term given narrative noise around the story and stock, but sees upside on potential re-rate as core stabilizes and new product efforts.
$W-Â Loop Capital lowered the firm’s price target on Wayfair to $50 from $60 and keeps a Hold rating on the shares. The firm is adjusting its sales and margin estimates lower while noting that the industry is bouncing along the bottom, the analyst tells investors in a research note, adding that its updated model is also responding to increased negative sentiment around demand for home products while “lowering the bar proactively”. Loop also maintains that its longer-term bearish thesis has been that growth at Wayfair is funded by debt, and the cost of debt has increased significantly.
$JD- Loop Capital lowered the firm’s price target on JD.com (JD) to $31 from $35 and keeps a Hold rating on the shares. Online consumption trends in China through May are encouraging, but the early reports on June 18th sales suggest mixed trends, with JD seen as a “meaningful laggard”, the analyst tells investors in a research note. Alibaba (BABA) is reportedly regaining share, fueled by aggressive promotion with targets including consumer electronicss and other stronghold categories for JD, the firm added.
$AAPL- Apple’s presentation on AI this month offered examples of how American iPhone users can enjoy AI tools, but had no mention of China, its second-largest market for iPhones, Raffaele Huang and Jiyoung Sohn of The Wall Street Journal reports. Western AI models are not available in China, which is prompting Apple to look for a Chinese partner to help offer the company’s Intelligence services, people in the industry told the Journal. So far, no deal has been announced and Apple is falling behind local rivals in China that have already incorporated AI functions into their phones.
$MSFT- Citi raised the firm’s price target on Microsoft to $520 from $495 and keeps a Buy rating on the shares. While OpenAI’s revenue growth headlines are a positive for Microsoft from a growth perspective, suggesting strength in Azure, consensus models may be understating the losses that Microsoft will incur from its OpenAI stake in the non-operating expense line, the analyst tells investors in a research note. Citi believes consensus earnings per share estimates may be overstated by 4c-5c in the coming quarters all-else-equal. However, the firm increased fiscal 2027 estimates, which drives the price target bump.
$AMD- AMD found that hackers accessed limited information related to assembling certain AMD products on a third-party vendor website during a recent cyberattack, but expects no material impact to its business, Bloomberg’s Ian King reports. AMD launched a probe this week after reports that Intelbroker had breached its systems, and AMD found that the intrusion did not obtain business-critical information, King writes. “Based on our investigation, we believe a limited amount of information related to specifications used to assemble certain AMD products was accessed on a third-party vendor site,” a company spokesperson said. “We do not believe this data breach will have a material impact on our business or operations
Hey OP…. Another great day in the books yesterday as we smashed NVDA puts in chat for 100% gain.
Today is quad witching so expect elevated volatility and volume into close.
NVDA was a shooting star yesterday so it can see a bunch of days of red if bulls can’t win the fight. See you all in chat for more updates.
If you want to get the plays of the day then signup for Gold, and get a FREE TRIALIf you want to get the plays of the day then signup for Gold, and get a FREE TRIAL
Responses