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Microsoft and a major chemical stock were among Friday's biggest analyst calls. He also lowered his price target by $1 to $25, which implies shares can fall roughly 19% from Thursday's close. Sandler increased his price target by $27 to $200, which implies 26.6% potential upside. JPMorgan: Analyst Mark Murphy added $30 to his price target, which is now at $470. He also hiked his price target to $61 from $55, which implies upside of 8% going forward.
Persons: Morgan Stanley, Mobileye, Adam Jonas, Jonas, — Pia Singh, Stifel, Stanley Elliot, Elliott, Alphabet's, Oppenheimer, Jason Helfstein, Ross Sandler, Sandler, Brent Thill, Google's, Justin Post, Post, Wall, Raimo Lenschow, Wells, Michael Turrin, MSFT, Turrin, Mark Murphy, Murphy, Keith Weiss, Weiss, Jeffrey Zekauskas, Zekauskas, Dow, Fred Imbert Organizations: CNBC, Microsoft, JPMorgan, Dow Inc, TAM, Caterpillar, Google, Barclays, , Jefferies, Bank of America, DOW Locations: Israel, Thursday's, reaccelerate, Wells Fargo
Netflix and a popular beauty stock were featured among Friday's biggest analyst calls. Analyst Rob Sanderson initiated coverage of DoorDash with a buy rating and $170 price target, citing strong execution. Alongside the upgrade, Blum downgraded Sunnova Energy to an equal weight rating and slashed his price target to $6 from $11, citing a higher-for-longer rate environment. "Share gains upmarket by Shopify support confidence in the durability of growth against tempered consumer spending expectations," wrote analyst Keith Weiss. The stock has tumbled 11% this year, but could rally 22% based on the firm's adjusted $85 price target.
Persons: Canaccord Genuity, Rob Sanderson, DoorDash, Sanderson, – Samantha Subin, Wolfe, Steven Chubak, BAC's, Chubak, bode, Wells, Michael Blum, Blum, Biden, Samantha Subin, Morgan Stanley, Keith Weiss, Weiss, — Samantha Subin, Canaccord, Maria Ripps, Steven Cahall, Price, Doug Anmuth, Morgan Stanley's Benjamin Swinburne, Jefferies, Ashley Helgans, Helgans, Fred Imbert Organizations: CNBC, Netflix, Friday's, Jefferies, Capital, Industry, Wolfe Research, Bank of America, of America, SCHW, Sunnova Energy, NOVA, Ulta Locations: Wells Fargo, China, Thursday's, Canada
However, the company also said it sees single-digit revenue growth for fiscal 2025. UBS reiterated a neutral rating alongside its $310 per share price target on Salesforce, or more than 3% upside ahead. Product revenue growth of 33% year over year in the fourth-quarter was also below Wall Street estimates. Murphy noted there's a disconnect between what Barrick has accomplished in the past five years and its stock price. "We see asset disposals and cost improvements as likely to reverse share price weakness as the market recognizes the strength of the asset portfolio."
Persons: Morgan Stanley, Snowflake, Jefferies, TD Cowen downgrades Macy's TD Cowen, Oliver Chen, Macy's, — Brian Evans, Brad Sills, Brian Evans, AutoNation Morgan Stanley, AutoNation, Morgan Stanley's, Mike Manley, Adam Jonas, Salesforce, Amy Weaver, Goldman Sachs, Kash Rangan, Bank of America's Brad Sills, Morgan Stanley downgrades Snowflake, Snowflake's, Frank Slootman, Keith Weiss, Matthew Murphy, Murphy, Fred Imbert Organizations: CNBC, Barrick, Mining, Bank of America, of America, TAM, Bank of America's, UBS, StreetAccount, Jefferies, Barrick Gold, Newmont, Newcrest Locations: Africa, East
Microsoft seemed to pass Wall Street's latest test when it demonstrated its ability to monetize artificial intelligence. The action came a day after Microsoft issued light guidance but delivered a top-and-bottom line beat and strong AI-focused commentary. Wall Street analysts across the board regarded Microsoft's results as an affirmation of its AI leadership position. Piper Sandler's Brent Bracelin said in a Tuesday note that the results "reinforced Microsoft's first-mover advantage in AI applications." Meanwhile, Goldman Sachs analyst Kash Rangan called the company one of the "most compelling" opportunities across sectors, viewing AI as a major boon for an "already strong growth profile."
Persons: Brent Thill, Satya Nadella, Amy Hood, Morgan Stanley's Keith Weiss, Piper Sandler's Brent Bracelin, Goldman Sachs, Kash Rangan, Mark Murphy, — CNBC's Michael Bloom Organizations: Microsoft, Barclays, Raimo, Wall Street
After 2023's blowout run, it's hard to recall the once gloomy investing setup for technology stocks last December. As the calendar year turns, don't expect technology stocks to match 2023's blowout gains, but the year's performance is no fluke. AI stocks may dominate tech-focused investing, but don't sleep on the other emerging themes. GOOGL YTD mountain Alphabet shares in 2023 Both companies have rolled out new initiatives in the months since. Arm Holdings made headlines this year as one of the first major companies to go public , reviving the IPO market after a roughly two-year drought.
Persons: behemoths, Jay Woods, Mark Zuckerberg, didn't, chipmakers, David Waddell, Everybody's, Copilot, Paul Meeks, Gene Munster, Alphabet's, Meeks, Morgan Stanley, Andrew Slimmon, They're, Slimmon, CNBC's, Wall, Nvidia's, He's, Mahoney, Ken Mahoney, it's, Brent Fredberg, Munster's, Management's Albert Tsuei, Tsuei, William Blair's Jonathan Vo, Keith Weiss Organizations: Federal Reserve, Treasury, Freedom, Microsoft, Waddell & Associates, Oracle, Arista Networks, Morgan, Morgan Stanley Investment, Meta, Nvidia, Devices, Dell, Hewlett Packard Enterprises, Broadcom, Holdings, Micron Technology, Brandes Investment Partners, Micron, Samsung, Taiwan Semiconductor Manufacturing, MGM Resorts, Johnson, Okta, UBS, Management's, Palo Alto Networks, Palo Alto Locations: British, Clorox
Despite the seeming rush to shop, this Black Friday ushered in moderately higher promotions over last year and mixed in-store traffic, according to some Wall Street analysts. Black Friday winners Value-focused shopping destinations seemed to win big Friday, based on annual store checks from a slew of Wall Street shops. The Black Friday shopping extravaganza also ushered in some bullish sentiment toward Shopify . Black Friday losers Not every popular retailer seemed to kick off the holiday shopping period on a strong note. While Lululemon drove strong in-store traffic, helped in part by advertising use in Black Friday markdowns, Nike and Under Armour both showed higher promotions, said Piper Sandler's Abbie Zvejnieks.
Persons: Michael Lasser, Bradley Thomas, Thomas, Kohl's, Morgan Stanley, Alex Straton, Goldman Sachs, Kate McShane, JPMorgan's Matthew Boss, Piper Sandler's Korinne Wolfmeyer, Morgan Stanley's Keith Weiss, Bhavin Shah, shouldn't, Nordstrom, Straton, Lululemon, Armour, Piper Sandler's Abbie Zvejnieks, lululemon Organizations: Adobe Analytics, UBS, Walmart, KeyBanc Capital, Dick's Sporting Goods, Body, Deutsche, Eagle Outfitters, Nike Locations: U.S
The growth of artificial intelligence is creating a multitrillion dollar opportunity poised to benefit these software and technology stocks, according to Morgan Stanley. Nvidia shares have more than tripled this year as investors bet on the promise of its graphics processing units fueling many AI models. For Alphabet, Morgan Stanley forecasts that every 2% of AI spending could drive 5% upside to the company's cloud platform, and account for $3 billion in incremental revenue by 2026. Within the software space, the Morgan Stanley also highlighted Adobe as a long term beneficiary, noting that generative AI could accelerate EPS growth back toward the mid-high teens. "Generative AI functionality into existing workflows of a broad base of subscribers, enabling stickier customer engagement and opportunity to monetize incremental productivity provided to users," the firm said.
Persons: Morgan Stanley, Keith Weiss, Morgan Stanley's, Joe Moore, — CNBC's Michael Bloom Organizations: Microsoft, Nvidia, NVDA
A survey conducted by the investment bank showed that younger or college-educated respondents believed that generative AI could help alleviate some of these gaps. The survey also showed that AI tools are making gig work more profitable. Those turning to the technology reported a 21% boost in income from using generative AI relative to their peers who didn't use it. Amazon (AMZN) is helping lay the foundation for developers and enterprises to build generative AI applications through its platform Bedrock, accessible through its web services cloud. Below is an extended table that shows the brands Morgan Stanley believes will benefit or be challenged by the intersection of gig work and generative AI.
Persons: Morgan Stanley, Gen Z, X, Gen, Morgan Stanley's, they've, Morgan, Keith Weiss, Phillips, Brian Nowak, Gary Yu, Yu Organizations: IBM Locations: Bridgewater, Booking.com
The software company reported a top- and bottom-line beat on Thursday, on an adjusted $4.09 per share and $4.89 billion in revenue. Goldman Sachs analyst Kash Rangan reiterated a buy rating on Adobe stock with a higher $625 per share price target, up from $550. Bank of America's Brad Sills also reiterated a buy rating on Adobe stock on Thursday, accompanied by a $660 per share price target. Morgan Stanley analyst Keith Weiss remained overweight on Adobe stock after third-quarter results , also with a $660 per share price target. JPMorgan's Mark Murphy is neutral on Adobe stock, with a $530 per share price target.
Persons: LSEG, Goldman Sachs, Kash Rangan, Rangan, Bank of America's Brad Sills, Sills, Morgan Stanley, Keith Weiss, Weiss, JPMorgan's Mark Murphy, Murphy, — CNBC's Michael Bloom Organizations: LSEG, Adobe, TAM, Bank of America's
Difficulties monetizing around artificial intelligence could spell bad news for Palantir after its massive rally, Morgan Stanley warned. Analyst Keith Weiss downgraded the data analytics stock to underweight from equal weight while adding $1 to his price target to $9. Still, Weiss' target implies shares could tumble 44.9% in the next year from Wednesday's close. Shares have surged 154.4% this year as investors bought into names with AI exposure. Palantir's challenges could lead to "sell the news" events for the nearly 3-year-old stock , Weiss said.
Persons: Morgan Stanley, Keith Weiss, Weiss, monetizing, — CNBC's Michael Bloom Organizations: Palantir, AIP Locations: Wednesday's
Adobe upgraded and Salesforce downgraded at Morgan Stanley
  + stars: | 2023-07-31 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAdobe upgraded and Salesforce downgraded at Morgan StanleyKeith Weiss, an analyst at Morgan Stanley, joins 'Power Lunch' to discuss Weiss' recent stock rating adjustments between the firm's upgrade of Adobe and downgrade of Salesforce.
Persons: Morgan Stanley Keith Weiss, Morgan Stanley, Weiss Organizations: Adobe
Morgan Stanley upgrades Adobe, cites A.I. acceleration
  + stars: | 2023-07-31 | by ( Brian Evans | ) www.cnbc.com   time to read: +1 min
Morgan Stanley thinks Adobe can benefit from artificial intelligence-powered products even more. The bank upgraded Adobe to overweight from equal weight on Monday and hiked its price target to $660 per share from $510. Morgan Stanley's new forecast now implies nearly 25% upside. "Importantly, GenAI products like Firefly coupled with enhancements to flagship applications renew our confidence in a robust product innovation engine at Adobe," Weiss said. Weiss also pointed to the popular Adobe Creative Cloud, which could push the company's earnings-per-share compounded annual growth rate to toward 17% from 2022 to 2025.
Persons: Morgan Stanley, Adobe, Morgan Stanley's, Keith Weiss, Weiss, — CNBC's Michael Bloom Organizations: Adobe
Weiss reiterated an overweight rating on Microsoft stock with a $415 per share price target, which implies 18% upside from Tuesday's close. Meanwhile, Goldman Sachs analyst Kash Rangan noted that while Azure revenue growth was stabilizing, he highlighted the contributions generative artificial intelligence is making to the segment's maturation. He reiterated a buy rating on the stock with a $400 per share price target, or roughly 14% upside. Bank of America's Brad Sills also reiterated a buy rating on Microsoft stock, albeit with a higher $405 per share price target which equates to 15% upside. Citi's Tyler Radke maintained a buy rating on Microsoft with a $425 price target, or about 21% upside from Tuesday's close.
Persons: Morgan Stanley, Keith Weiss, Weiss, JPMorgan's Mark Murphy, Murphy, Goldman Sachs, Kash Rangan, Rangan, Bank of America's Brad Sills, Sills, Citi's Tyler Radke, Wells Fargo's Michael Turrin, Turrin, — CNBC's Michael Bloom Organizations: Microsoft, Bank of America's
Microsoft gained as much as $154 billion in market cap in a single day after unveiling the Copilot subscription service. The tech giant is poised to become the second company ever to reach a $3 trillion valuation, according to Morgan Stanley. That saw its market cap balloon by as much as the above-mentioned figure during intraday trades, before ending the session with a $102 billion increase. Amazon founder Bezos' wealth totaled $157 billion as of Tuesday, according to the Bloomberg billionaires index. Their combined value now stands at an eye-watering $11 trillion – which, to offer another comparison, is nearly triple the GDP of Germany.
Persons: Jeff Bezos's, Morgan Stanley, Jeff Bezos, Bezos, OpenAI's, Tesla, Morgan Stanley's Keith Weiss Organizations: Microsoft, Service, Bloomberg, Apple, Nvidia Locations: Wall, Silicon, OpenAI, Germany
Shares of Palantir have surged 181% this year as investors bet on its potential in the booming artificial intelligence race. The company, founded in 2003, is already making strides in AI, even lending its tools to hospitals . In its latest earnings release in early May, CEO Alex Karp called demand for Palantir's AI platform, which allows commercial and government sectors to use LLMs with their own private data, "without precedent." While some analysts see promise in Palantir's AI capabilities, many remain cautious on the immediate profit contribution of the technology and view the stock as ripe for a pullback. In a note to clients in May, Morgan Stanley's Keith Weiss noted that the rally in Palantir shares and premium valuation creates an unfavorable near-term risk-reward.
Persons: Palantir, Alex Karp, Malik Ahmed Khan, Davidson's Gil Luria, Raymond James, Brian Gesuale, Morgan Stanley's Keith Weiss, Karp, Morningstar's Khan, Mizuho's Matthew Broome, Davidson's Luria, — CNBC's Michael Bloom Organizations: Wall, Nvidia, billings Locations: Denver
Microsoft confirmed Monday that it's eliminating additional jobs, a week after the start of its 2024 fiscal year. The cuts are in addition to the downsizing announced in January that resulted in 10,000 layoffs. The software maker also disclosed a small number of cuts this time last year. GeekWire reported on the latest cuts earlier Monday. A Microsoft spokesperson declined to specify the number of cuts in the latest round.
Persons: GeekWire, Satya Nadella, Morgan Stanley's Keith Weiss Organizations: Microsoft, Google Locations: Washington
Microsoft stock is poised to top a $3 trillion valuation in early 2024 as it is best positioned to monetize generative AI, according to Morgan Stanley. "Microsoft likely emerges as an early 'Picks and Shovels' beneficiary" of generative AI, Morgan Stanley said. The bank called Microsoft stock a "Top Pick" and said it has 22% upside potential from current levels thanks to its "pole position" in the generative AI race that should help it quickly monetize the growing trend. And investors should see the impact of AI on Microsoft's financials sooner rather than later as increased datasets flow into bigger revenues for Microsoft's Azure cloud service. And although Microsoft's stock is up about 40% year-to-date, its valuation isn't stretched based on historical averages, "despite the unrivaled Generative AI positioning," Weiss concluded.
Persons: Morgan Stanley, , Morgan Stanley's Keith Weiss, Weiss Organizations: Microsoft, Service, Apple, OpenAI Locations: OpenAI
Morgan Stanley raised its Microsoft stock outlook to the highest on Wall Street, implying the company once famous for Windows software will climb above a market value of $3 trillion because of artificial intelligence. The generative AI boom has already helped propel Microsoft's stock by almost 41% year to date — and Morgan Stanley's new price target implies it will climb another 23% over the next 12 months. Weiss raised his price target on Microsoft by 24%, to $415 from $335. Morgan Stanley called Microsoft its top pick among large-cap software stocks on account of the company's strong positioning in the generative AI boom. MSFT YTD mountain Microsoft stock Weiss said Microsoft has taken a "leading position" providing the "picks and shovels" of the AI boom — large language models, data management and other technologies.
Persons: Morgan Stanley, , Morgan, Keith Weiss, Weiss, FactSet, — CNBC's Michael Bloom Organizations: Microsoft, Windows, Software, OpenAI
Oracle reported a record-breaking $49.95 billion in annual revenue thanks to success in cloud computing. It has convinced its biggest critic, Goldman Sachs, to change its mind about its potential. And on Tuesday, Oracle's biggest critic, Goldman Sachs analyst Kash Rangan, admitted he was wrong. He did gracefully swallow his pride enough to admit that since he first imposed the sell rating, the stock has climbed 46%. And he's also got his eye on Oracle's cash situation, given how expensive it is to build and maintain data centers.
Persons: Goldman Sachs, there's, Oracle's, Kash Rangan, Rangan, he's, What's, Safra Catz, it's, Morgan, Keith Weiss, luke, Weiss Organizations: Oracle, Morning, Yahoo Finance, Microsoft
Salesforce could be leading it, with a giant list of new AI products in the works. And he told tale after tale of planned AI products. Morgan Stanley's Keith Weiss believes Salesforce's claims that AI has the potential to "spark a massive new buying cycle." Rangan tallied up 15 pending AI products from Salesforce. There will be five new AI products incorporated into the Marketing cloud to automate tasks ranging from personalized emails to analyzing engagement.
Persons: Salesforce, Marc Benioff, Claude, Goldman Sachs, Kash Rangan, Salesforce's, Einstein, Rangan, Morgan Stanley's Keith Weiss, Weiss Organizations: OpenAI, Salesforce Ventures, Google, Salesforce's, Slack, Products, Next
Some investors question whether these arrangements are artificially juicing cloud revenue growth. When Microsoft announced a multibillion-dollar investment in OpenAI earlier this year, the deal made Azure the ChatGPT-maker's "exclusive cloud provider." There's another deal in the works with similar attributes involving Runway AI and a major cloud company. But they are drawing more scrutiny lately because they could artificially inflate cloud revenue, a key driver of growth for Microsoft, Google, and Amazon, according to Ted Mortonson, managing director of financial-services firm Baird. Is OpenAI a regular cloud customer that is getting no investment money from Microsoft?
Insiders and analysts expect a major shakeup to Shopify's logistics strategy. "The fulfillment investment is sort of the biggest anchor that's keeping the business from being more profitable." That may be a welcome change for investors, who have been voicing increasing concern with the level of investment Shopify had planned. And Shopify Logistics CEO Aaron Brown told Insider in February that 6 River Systems' warehouse automation would be "the machine in the background making everything work." Weiss then asked if Shopify Logistics is intended to turn a profit.
A sign for Microsoft Corp. at the company's office in the central business district of Lisbon, Portugal, on Tuesday, Dec. 27, 2022. Microsoft shares sustained a nearly 8% jump in pre-market trading Wednesday, a day after reporting third-quarter results that beat analyst expectations on the top and bottom lines. Shares held their gains after a British regulator blocked Microsoft's planned acquisition of video game company Activision Blizzard on Wednesday morning. Analysts responded positively to Microsoft's AI prospects. Morgan Stanley reiterated its overweight rating on the stock and increased its price target to $335.
Microsoft's big swings on artificial intelligence are paying off, and analysts are even more bullish on the tech giant. Rangan has a buy rating on Microsoft and a price target of $335, implying upside of 21.6%. "Azure growth was ahead of expectations with MSFT showing ability to protect margin/EPS in a tough backdrop," Turrin said, who rates the stock as overweight. He also hiked his price target to $345 from $320, pointing to a 25.2% potential gain. Keith Weiss of Morgan Stanley also reiterated an overweight rating on the stock, and hiked his price target to $335 per share from $307.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSalesforce's pivot to profitability is under appreciated in its stock, say Morgan Stanley Keith WeissMorgan Stanley Analyst Keith Weiss joins 'Closing Bell Overtime' to discuss his playbook for second quarter, the strong first quarter performance by software stocks, and companies set to benefit from A.I.
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