Main financial assets discussed: Meta Platforms, Inc. (NASDAQ:META)
Top 3 key points:
1. Meta Platforms reported positive earnings growth and a significant margin improvement in its Q2 earnings results.
2. The company has addressed its margin issues through job cuts and expense control, resulting in an upward trajectory for operating margins.
3. Meta Platforms has a solid growth outlook, with a stable user count and potential for further margin improvements, making it a potentially good investment.
Recommended actions: **Hold**. The article does not explicitly recommend buying, selling, or holding Meta Platforms' stock. However, based on the positive earnings growth outlook, margin improvements, and relatively reasonable valuation, it suggests that holding the stock is a viable option.
The article mentions Meta (NASDAQ:META) stock. The author does not explicitly give a recommendation to buy, hold, or sell the stock.
The author's core thesis is that Meta has experienced a remarkable turnaround, with revenue accelerating, margins improving, and positive outlook. The key information and data provided include Meta's revenue growth in Q2, the improvement in advertising revenue from its Family of Apps, the growth in Family Monthly Active People, the increase in ad impressions and decrease in average price per ad, the progress in Reels engagement and monetization, the profitability and financial health of Meta, the company's outlook for Q3, and the valuation of Meta stock.
Main financial assets discussed: Meta (NASDAQ:META) stock
Top 3 key points:
1. Meta has experienced a significant turnaround, with revenue accelerating and margins improving.
2. Advertising revenue from Meta's Family of Apps (FoA) is growing, driven by strong ad demand in the e-commerce sector.
3. The Reality Labs segment has seen a decline in revenue due to competition from Sony and the launch of the Sony PlayStation VR2.
Recommended actions: **Hold**. The article suggests that while Meta's performance has been impressive, the stock may be overvalued and a slight pullback could be on the horizon. The author plans to hold their position but may consider trimming it if prices continue to rally.
Main financial assets discussed: S&P 500, Apple (AAPL), Netflix (NFLX), Nvidia (NVDA), Tesla (TSLA), Apellis (APLS), Axsome (AXSM), Sage Therapeutics (SAGE)
Top 3 key points:
1. The S&P 500 experienced a strong reversal to the week's downward slide and is expected to start next week on a buoyant note.
2. Apple (AAPL) and other big tech stocks like Netflix, Nvidia, and Tesla have weak charts and may continue to weigh on the market.
3. The author expects the market to start positively, but believes Jerome Powell's speech at Jackson Hole will lead to another sell-off and a test of the support level at 4320.
Recommended actions:
1. **Buy**: Consider buying Apellis (APLS), Axsome (AXSM), and Sage Therapeutics (SAGE) based on the author's opinion and further research.
2. **Sell**: Consider closing out long options positions slowly and trimming positions, especially call options.
3. **Hold**: Monitor the market and be prepared to hedge through call options or put options depending on their pricing.
4. Monitor the VIX and use it as an indicator for hedging when it falls into the low 15s.
5. Pay attention to economic news, earnings reports, and Powell's speech for potential market movements.
The article mentions the stock of Applied Materials, Inc. (NASDAQ: AMAT). The author gives a recommendation to buy the stock.
The author's core thesis is that Applied Materials has shown resilience in the semiconductor equipment industry and is expected to continue reporting resilient YoY growth rates. The author mentions that the company has a strong market position, comprehensive product portfolio, and revenue driven primarily by the semiconductor systems segment. They also highlight the company's commitment to research and development and its potential for long-term growth.
The key information and data mentioned in the article include Applied Materials' Q3 financial results, which beat Wall Street consensus and the author's own estimates. The company reported revenue of $6.43 billion, down 1.4% YoY but better than expected. The article also discusses the company's margin profile, earnings per share, cash flows, and dividend growth history. The author highlights the company's exposure to the ICAPS (IoT, communications, automotive, power, and sensors) segment, which has been driving its outperformance, and the growing importance of the services segment in stabilizing its revenue stream. The article also mentions the company's future outlook, guidance for Q4, and updated financial projections. The author provides a target price for the stock of $177, based on a forward P/E multiple of 20x and improved financial estimates.
Investors are looking forward to after-the-bell earnings from Nvidia as the Dow, S&P 500, and Nasdaq are set to open slightly higher; Apple is now the most under-owned large-cap U.S. tech stock while Meta Platforms is the most over-owned.
Major stock indexes ended higher, with the S&P 500 and Nasdaq leading the gains, despite weak economic data and a drop in yields, and Nike extended its losing streak while Apple rose for the fourth consecutive day; FootLocker plunged on earnings, Netflix rose as analysts see high margin revenue drivers, Analog Devices reported a lackluster quarter, Peloton fell to an all-time low due to a churn in subscriptions and a bike-seat recall, Kohl's reversed higher, and Cathie Wood's Ark Innovation ETF bought shares of Zoom Video Communications.
Tech-heavy Nasdaq Composite and S&P 500 close higher on Monday, while Dow Jones Industrial Average falls slightly; Bank of America analyst predicts insurers will increase customer prices due to increased climate change risk; Allianz economist believes Federal Reserve Chair Powell will focus on short-term monetary policy at Jackson Hole; Loop Capital warns of weak smartphone sales ahead of iPhone 15 launch; CFRA Research chief investment strategist expects year-end rally for stocks despite recession concerns; Homebuilding stocks begin to decline; AMC Entertainment falls ahead of stock conversion; Cybersecurity company SentinelOne explores potential sale; LPL Financial chief technical strategist says recent stock pullback is temporary and predicts end-of-year rally; Jefferies upgrades gold product manufacturer Acushnet Holdings; Nvidia's quarterly earnings report could be critical for the market, says Wolfe Research; Stocks making big moves midday, including XPeng, Eli Lilly, and Marriott Vacations Worldwide.
Stocks had a mixed day as investors reacted positively to the latest inflation data, but overall, it has been a challenging month for the equities market. The July personal consumption and expenditures (PCE) index showed a modest increase in consumer spending, while the core PCE remained unchanged. Despite the "disappointing" details, experts expect the Federal Reserve to maintain unchanged interest rates in September. Additionally, tech stocks like Salesforce saw a boost after reporting strong earnings and highlighting their generative AI initiatives.
The top 25 stocks in the S&P 500 outperformed the index in the 35th week of 2023, with tech stocks leading the way, suggesting a return of bull markets and a decrease in recessionary fears; however, market health, the balance between developed and emerging markets, and investor behavior still need to be addressed. Additionally, market correlations have dropped since COVID, and on "down-market" days, correlations are 5% higher than on "up-market" days. Market correlations also decrease during upward economic cycles. Retail investors are showing a preference for dividend-driven investing and investing in AI stocks. The global subsidies race is impacting valuations in tech and leading to supply chain inefficiencies. As a result, there are opportunities for diversification and investment in a wide variety of equities and bonds.
Dow Jones futures open with the stock market rally weakening and major indexes falling below their 50-day lines, but there is potential for change with upcoming events such as Apple's product unveiling, Oracle's earnings release, and the August CPI inflation report. Additionally, Tesla, Roku, and Shopify are among the Cathie Wood holdings near buy points.
Stocks were higher on Monday, with the Nasdaq leading the way, as Apple stabilized and the CNBC Investing Club with Jim Cramer highlighted key events including Salesforce's Dreamforce event, Apple's iPhone 15 event, Google's search trial, upcoming inflation data, and the expiration of the UAW labor contract. Additionally, Meta Platforms is developing a new AI system to rival OpenAI's model, while Oracle's earnings are set for release, with analysts expecting upside from Oracle Cloud Infrastructure.
The Nasdaq Composite had a down month in September, but there are signs of a potential rally happening with stocks like Meta and Baker Hughes Company making a comeback, and the performance of the US Dollar playing a role in market trends.
Meta Platforms (META) stock has seen a significant rally in 2023, driven by analyst optimism over the upcoming Q3 earnings update and excitement over new technology, including smart glasses and virtual reality headsets, but there are concerns that growth expectations may be overly optimistic and there could be headwinds from consumer spending slowdown and privacy regulation.
The stock market made a strong rebound with the Nasdaq erasing its losses and the S&P 500 regaining its 200-day moving average, while major tech stocks like Apple, Meta Platforms, Microsoft, and Nvidia showed impressive strength. Despite the rebound, the stock market still faces risks from geopolitical tensions in the Middle East and major earnings reports from tech giants like Microsoft, Meta, Google-parent Alphabet, and Amazon.com. Additionally, there was significant merger and acquisition activity in the market, including Chevron's acquisition of Hess and Roche Holding's purchase of Telavant.
The Nasdaq Composite gained over 30 points, while the Dow dipped by 0.58%, and the S&P 500 fell by 0.17% as U.S. stocks showed mixed performance. Retail traders and investors focused on stocks such as Marathon Digital Holdings, Riot Blockchain, MicroStrategy Incorporated, Coinbase Global, and Tesla, with their performance influenced by the positive momentum in Bitcoin.
Indexes were lower in late afternoon trading, with the Dow Jones Industrial Average down 0.3% despite a rise in Microsoft's stock; Rep. Mike Johnson won the vote to become the House Speaker; Fed Chair Jerome Powell is scheduled to speak at a gathering as a deficit keeps bond yields elevated; the S&P 500 and Nasdaq suffered a decline; Boeing reported continuing losses and slowing sales, while Microsoft's stock rose; Alphabet fell after earnings topped views; T-Mobile is retaking the 200-day line after beating earnings views; Snap gave back early gains after Q3 results; new home sales rose in September.
Meta Platforms reported strong Q3 earnings that exceeded revenue and profit expectations, with a rebound in the advertising business and balanced expense guidance for 2023 and 2024; however, Meta's stock dipped over 3% as CFO Susan Li mentioned "softer" ad spend due to the Israel-Hamas war, and warned of volatility in 2024. Mark Zuckerberg discussed AI, the success of Threads, and the open-source strategy for AI models.
