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Search resuls for: "— CNBC's Michael Bloom"


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Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023. Alphabet shares shot up 10% Friday morning after the company posted better-than-expected first-quarter results and greenlit its first-ever dividend and a $70 billion buyback. Earnings of $1.89 per share eclipsed the $1.51 in earnings per share expected by Wall Street. The company said the board also approved the repurchase of an additional $70 billion in stock. Among other price target boosts for the stock following Alphabet's earnings, JPMorgan increased its price target to $200 from $165, while Evercore ISI upped its target to $200 from $160.
Persons: Sundar Pichai, Oppenheimer, Morgan Stanley, durably, — CNBC's Michael Bloom Organizations: Google, LSEG, Wall, YouTube, Barclays, , JPMorgan Locations: Mountain View , California
Morgan Stanley Wealth Management buys the dip in Nvidia
  + stars: | 2024-04-26 | by ( Lisa Kailai Han | ) www.cnbc.com   time to read: +1 min
Nvidia is poised for even bigger gains from current prices, according to Morgan Stanley Wealth Management. Morgan Stanley Wealth Management currently has an overweight rating on Nvidia. Morgan Stanley Wealth Management's $1,000 price target implies that the stock could rise another 21%. Nvidia shares sell for a "valuation in line with historical trough multiples," and its growth potential justifies a higher valuation, Morgan Stanley said. Additionally, a growing AI tailwind could provide even more ammunition for Nvidia stock to balloon.
Persons: Morgan, Morgan Stanley, NVDA, Michael Bloom Organizations: Nvidia, Morgan Stanley Wealth Management, Morgan, Morgan Stanley Wealth
Investors seeking exposure to China's growing mobile gaming industry should look at technology giants Tencent and NetEase , according to Goldman Sachs. The investment bank expects "China to see faster growth from mid 2024 supported by game launches and a loosening regulatory environment." Tencent Tencent's game sales were up 14% year on year domestically in March and 36% internationally. NetEase NetEase posted a 16% year-on-year rise in domestic sales growth and 1% rise in international sales growth last month, Goldman's analysts noted. Domestic mobile game sales fell by 12% year-on-year Japan in the first quarter of the year.
Persons: Goldman Sachs, 2Q24, Lincoln Kong, FactSet, NetEase NetEase, Michael Bloom Organizations: Street, Hong, Nasdaq, Hong Kong Stock Exchange, China, Domestic Locations: China, Tencent, Hong Kong, Japan, South Korea
Investors will be looking to see if Microsoft's report can restart the rally, but the bar for success might be high. The AI narrative Microsoft is viewed as one of the companies best-positioned to take advantage of recent advances in artificial intelligence. Another area is Copilot , the AI tool that Microsoft is packaging with its Office suite of software products. "That said, we expect AI contribution to Azure growth to increase w/ our checks pointing to strong demand for Azure AI services & elevated workloads as more models go into production. Wall Street is overwhelmingly positive on the stock, with more than 90% of the analysts covering Microsoft giving it a rating of "buy" or "strong buy," according to LSEG.
Persons: Jefferies, Brent Thill, MSFT's, LSEG, Brad Reback, Reback, MSFT, Guggenheim, John DiFucci, DiFucci, — CNBC's Michael Bloom Organizations: Microsoft, Investors, Wall Street Locations: MSFT, F4Q
Meta shares tumbled 12% Thursday morning after the company issued weak revenue guidance that overshadowed its first-quarter earnings beat. ET, wiping out roughly $161 billion in market cap from its $493.5 closing price before earnings on Wednesday. Meta expects second-quarter revenue of $36.5 billion to $39 billion. Barclays analysts maintained an overweight rating of Meta stock and lowered their price target to $520 from $550 in an investor note Wednesday. "If there is anything META has proven over the years, it's extremely good at executing during big platform shifts in tech, arguably the best," the Barclays analysts wrote.
Persons: Mark Zuckerberg, Bernstein, Zuckerberg, Michael Bloom Organizations: U.S . Capitol, Meta, JPMorgan, Barclays Locations: Washington , U.S
Gold and copper have been on fire, as geopolitical tensions mount, central banks buy up gold, and AI demand for copper grows. Copper, too, has done well, with copper futures hitting their highest level since 2022 last weekend. Stock picks He named Australian gold miner Northern Star and copper miner Southern Copper as stocks he's bullish on right now. He said against that backdrop, he's getting back into some gold mining stocks such as Gold Fields and K92 Mining. It said that copper demand will already "significantly exceed" supply starting this year — and that's not even accounting for demand growth from data centers.
Persons: Kingsley Jones, Jevons, CNBC's, Jones, Kamil Dimmich, Dimmich, he's, that's, Jefferies, Teck, Ian Roper, Michael Bloom Organizations: Wall Street, U.S . Federal Reserve, Stock, Northern Star, South, K92 Mining, Jefferies, JPMorgan, Teck Resources, North, Astris Advisory Japan KK, CNBC Locations: USA, Europe, South Capital, East, China, Freeport, McMoRan, Lundin, Teck, North America
DETROIT — Ford Motor is announcing first-quarter earnings after the markets close Wednesday. The automaker's 2024 guidance released in February included adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion; adjusted free cash flow of $6 billion to $7 billion; and capital spending of $8 billion to $9.5 billion. There is less consensus on Wall Street around Ford's performance than there was for its crosstown rival General Motors , which on Tuesday reported strong first-quarter results and raised its full-year guidance. Ford is Morgan Stanley's "top pick," but others on Wall Street are less bullish on the company. Ford has faced years of inflated warranty costs, including $1.9 billion in 2023, which have affected its earnings.
Persons: Ford's, Ford, Morgan Stanley's, Joseph Spak, Jim Farley's, — CNBC's Michael Bloom Organizations: New York, DETROIT, Motors, UBS
Elon Musk speaks onstage during The New York Times Dealbook Summit 2023 at Jazz at Lincoln Center in New York City, Nov. 29, 2023. Tesla shares surged 15% on Wednesday morning after CEO Elon Musk said the electric-vehicle company plans to begin production of new affordable EV models by early 2025. Musk's comments came during Tesla's earnings call on Tuesday after the company reported disappointing first-quarter numbers. The company previously expected to start production of the new EV models in the second half of 2025. UBS analysts on Tuesday reiterated their neutral rating of Tesla stock and lowered their price target to $147 from $160, saying they remain skeptical of the company's talk.
Persons: Elon Musk, Tesla, Musk's, Tesla's, Michael Bloom Organizations: New York Times, Jazz, Lincoln Center, Revenue, Bank of America, UBS Locations: New York City
The launch of Intel 's latest artificial intelligence chip is expected to benefit three global semiconductor companies, according to Morgan Stanley. The semiconductor giant said the latest chip is twice as power-efficient and can run AI models one-and-a-half times faster than Nvidia's H100 GPU – the flagship product from the current AI chip market leader. In a research note Monday, the Wall Street bank said Taiwanese companies TSMC , Alchip , and Wistron are likely to be the biggest beneficiaries of the demand for Intel's Gaudi chips. In its note, Morgan Stanley reiterated its overweight rating on Alchip and TSMC, considering them long-term winners of AI semiconductor demand. The analysts are overweight on Wistron too, noting that Nvidia's new Blackwell GB200 AI chip will also drive immediate growth for the Taiwanese electronics manufacturer.
Persons: Morgan Stanley, Gaudi, Alchip, Wistron, Morgan Stanley's, Charlie Chan, Blackwell, — CNBC's Michael Bloom Organizations: Intel, Gaudi, Dell, Hewlett Packard Enterprise, Lenovo, Microsoft, Google Locations: United States
Technical analyst Rob Ginsberg said in a note to clients Wednesday that the Global X FinTech ETF (FINX) looks attractive after a long period of underperforming the broader market. "Now that we're past much of the big bank earnings, there are a number of fintech and financial service names on the docket this week and next. FINX 5Y mountain The FINX ETF has shown early signs of a rebound in 2024. Ginsberg wrote that the ETF has some positive technical signals of its own. To be sure, earnings reports could prove to be a downside catalyst for financial technology stocks and the fund.
Persons: Rob Ginsberg, Ginsberg, — CNBC's Michael Bloom Organizations: titans, Wolfe Research, Paypal Locations: Fintech, FINX
Wells Fargo becomes bullish on this biotech company
  + stars: | 2024-04-24 | by ( Hakyung Kim | ) www.cnbc.com   time to read: +1 min
Neurocrine Biosciences ' drug pipeline is turning a corner and the company will be "knocking on the doors of the large-cap club" soon, according to Wells Fargo. Bansal forecasts the company's congenital adrenal hyperplasia treatment, crinecerfont, will achieve $1.5 billion in peak sales, topping his prior $1.1 billion estimate. "We think [the] Crinecerfont [opportunity] is underappreciated as the Street is only giving credit for $500-$700M peak opportunity." Bansal said this drug could open "a whole new chapter" of a $1.2 billion peak sales opportunity. The NBI-'845 treatment could be "another blockbuster opportunity," Bansal said, citing the treatment's once-daily administration as a factor in his assessment.
Persons: Mohit, Bansal, Takeda, — CNBC's Michael Bloom Organizations: Biosciences Locations: Wells Fargo
Tesla shares fell for a seventh straight day, reaching their lowest since January 2023, as further price cuts over the weekend added to mounting concerns heading into the company's first-quarter earnings report Tuesday. Tesla also lowered the price of its premium driver assistance system by one-third. The price cut follows a monthlong free trial that Tesla pushed out to customers throughout North America starting in late March. "Since late 2023, sentiment on Tesla (TSLA) has deteriorated," John Murphy, an analyst at Bank of America, wrote in a note on Monday. WATCH: Tesla stock hits 52-week low ahead of earnings
Persons: Elon Musk, Tesla, John Murphy, Murphy, Joseph Spak, Spak, — CNBC's Michael Bloom Organizations: New York Times, Jazz, Lincoln Center, North America, National, Traffic Safety Administration, CNBC, Bank of America, Reuters, UBS, EV, Traders, S3 Partners, Apple Locations: New York City, U.S, China, Europe
The firm is overweight on Tencent shares, with a price target of 400 Hong Kong dollars ($51). Also helping analysts' optimism on the stock are Tencent's share buybacks. HSBC has a buy rating on Tencent, with a target price of 385 Hong Kong dollars. Pan said that low liquidity in Hong Kong has also affected share prices in that market, but he hopes that can improve with a new CEO. The Hong Kong exchange's co-COO Bonnie Chan is set to become head of the business in late May.
Persons: Morgan Stanley, Gary Yu, Morgan Stanley's Yu, Tencent, Prosus, Charlene Liu, HSBC's, Grant Pan, Noah Holdings, Pan, Hong Kong exchange's, Bonnie Chan, — CNBC's Michael Bloom Organizations: Hong, Jefferies, Naspers, Internet, Gaming Research, HSBC Locations: Hong, Hong Kong, Asia, Japan, Netherlands, Tencent, 1Q24, Asia Pacific, HKD500m, China
The stubbornly high inflation readings to start 2024 are good news for one group of stocks — insurance companies. Stocks to watch In general, Wall Street analysts are buying the underlying story for these insurance stocks. For a slightly different angle, Wells Fargo analyst Elyse Greenspan upgraded Hamilton Insurance Group to overweight last week. Potential downsides To be sure, there are several factors that could derail the rally for insurance stocks. Another concern is so-called "social inflation," in which legal trends or regulatory changes can drive costs higher for insurance companies.
Persons: Goldman, Robert Cox, Stocks, Goldman's Cox, Cox, Wells, Elyse Greenspan, Hamilton, HG, Greenspan, Jimmy Bhullar, Andrew McGee, McGee, — CNBC's Michael Bloom Organizations: Bureau of Labor Statistics, Allstate, Wall Street, PGR, Progressive, Hartford Financial Services, Hamilton Insurance Group, U.S . Insurance, JPMorgan, CNBC Locations: Northbrook , Illinois, Wells Fargo
JPMorgan listed Duolingo as its best idea in online education ahead of the Pittsburgh-based tech firm's first-quarter earnings report in early May. With the mild downdraft since Duolingo's fourth-quarter earnings report, JPMorgan analyst Bryan Smilek said the stock's risk/reward ratio looks attractive at its current prices. DUOL YTD mountain DUOL YTD chart Smilek also said there may be additional room for potential upside to Duolingo's full-year 2024 outlook as part of its first-quarter numbers. Smilek praised Duolingo's strong advertising presence, saying it's resulted in rising user growth. As a result, passive index funds that track the midcap index and its value or growth subsets will be forced to buy Duolingo.
Persons: Duolingo, Bryan Smilek, Smilek, it's, Goldman Sachs, — CNBC's Michael Bloom Organizations: JPMorgan, 2Q, Allen, Co Locations: Pittsburgh, Wednesday's
Several countries have been beefing up their defense budgets in light of mounting geopolitical tensions, and Goldman Sachs has named several European stocks to play the theme right now. European defense stocks "have closely tracked super-cycles and are now "trading at peak multiples (20x 12-month forward price-to-earnings) vs history," which translates to a 45% premium to the benchmark Stoxx 600 index , the bank's analysts noted. Stocks Goldman's analysts said they "increasingly favour stocks exposed to long-term secular growth themes with superior visibility on growth." Other stocks with an exposure to the defense industry on Goldman's buy-rated list include aerospace names Rolls-Royce Holdings (also on its "conviction list") and Airbus . The bank has increased its 12-month price target on the stock by close to 60% to 606 euros, giving it nearly 13.4% upside potential.
Persons: Goldman Sachs, Victor Allard, Goldman, — CNBC's Michael Bloom Organizations: Stocks, Thales, Royce Holdings, Airbus, Rheinmetall
The unpredictability has led some analysts to reiterate their recommendation to buy dividend stocks. According to Morgan Stanley, the MSCI Asia Pacific ex-Japan High Dividend Index outperformed the MSCI Asia Pacific ex-Japan index in the first quarter of the year, albeit by only 0.58%. The cautious investors' sentiment also drives allocation toward Quality Dividend stocks," the investment bank's analysts wrote in an Apr. These translate into a higher UST bond yields and particularly favoring dividend stocks to outperform." The latter has a forward dividend yield of 8%, according to Morgan Stanley, comfortably higher than the average of 5.1% on the screen.
Persons: Morgan Stanley, Morgan, CNBC's Michael Bloom Organizations: MSCI Asia, Asia, UST, U.S . Treasury, China Overseas Property Holdings, China Medical System Holdings, Bank of China Locations: Japan, Asia, Pacific, China, Taiwan
After a slow start to the year, several restaurant chains are due to emerge as the winners this earnings season, according to Jefferies. First of all, same-store sales only modestly recovered in March to around flat, while the key metric was down 4.5% in January and 0.6% in February, analyst Andy Barish wrote. He added customer traffic remains challenged as well, although this varies from restaurant brand to restaurant brand, while consumers have simultaneously grown more cautious about their spending. Jefferies believes that the restaurant chain's earnings per share will come in line, while same-store sales are more likely to have some upside. Barish sees first-quarter U.S. same-store sales and earnings per share estimates coming in line with analyst expectations, while EBITDA could surprise to the upside.
Persons: Andy Barish, Barish, BJ's, Jefferies, EBITDA, McDonald, — CNBC's Michael Bloom Organizations: Jefferies, Investors, BJ's Locations: California, CA, remodels, Brazil, McDonald's
A direct war between Israel and Iran could lead to substantially higher oil prices through 2025, according to Bank of America. This scenario assumes that Iran's crude oil production falls by up to 1.5 million barrels per day due to the war. Crude oil prices have fallen for three consecutive trading sessions in the wake of Iran's weekend missile and drone assault against Israel. The bank has penciled in the first Fed interest rate cut in December, and oil prices would come down by then though remain elevated. "Should supply losses build up regionally, it may also prove difficult to access spare production capacity, so oil prices would likely settle above $150/bbl for several months," the bank's analysts forecast.
Persons: Brent, Israel, Michael Bloom Organizations: Bank of America, Israel, Bank, Federal, bbl, Israeli Locations: Israel, Iran, OPEC, U.S
Looking ahead, those searching for pockets of opportunities in the region can look to Morgan Stanley's selection of "alpha" stocks. Among the "notable top-ranked stock ideas" on its list is South Korean commercial bank Hana Financial Group. "Our Korea Financial analyst, Joon Seok ... believes large-cap banks are key beneficiaries of the corporate reform theme," Morgan Stanley's analysts said. Here are 10 stocks from Morgan Stanley's full list of top overweight-rated stocks for April. Notable bottom-ranked stocks Morgan Stanley named its "notable bottom-ranked stock ideas."
Persons: India's, Morgan Stanley's, Joon Seok, Morgan, Joon, Morgan Stanley, Santos, — CNBC's Michael Bloom Organizations: Japan's Nikkei, CSI, Alpha, Japan, Hana Financial, Korea Financial, Financial Services, Novatek Microelectronics, Analysts, Morgan, Berger Paints Locations: India, Japan, China, Asia, Pacific, Korean
Jefferies said Janus International is an undervalued small cap name that can outpace peers in the storage sector. The firm initiated coverage of the self storage stock with a buy rating and a $20 per share price target. Janus International stock has risen nearly 8% in 2024. Analyst Philip Ng said that while Janus remains outside of investor focus, he thinks the stock is undervalued compared with peer small cap storage firms. "As the only national player with a full-service solution, JBI has strong pricing power," he added.
Persons: Jefferies, Janus, Philip Ng, it's, Ng, JBI, Michael Bloom Organizations: Janus International, stoke
Oil prices were slightly lower Monday as Israel, aided by the U.S., fended off Iran's aerial barrage. The investment bank believes aerospace and defense stocks could outperform in the short run in light of growing geopolitical risks. The biggest ETF in the industry is the iShares U.S. Aerospace & Defense ETF (ITA) , with about $5 billion in assets under management. Invesco Aerospace & Defense ETF (PPA ) and SPDR S & P Aerospace & Defense ETF (XAR) are two other popular offerings. To be sure, Liberum thinks the stock market could quickly reverse any losses as soon as the tensions in the Middle East ease.
Persons: Israel retaliating, Liberum, — CNBC's Michael Bloom Organizations: Liberum, U.S ., Federal Reserve, West Texas Intermediate, May, U.S . Aerospace & Defense ETF, ITA, Invesco Aerospace & Defense ETF, P Aerospace & Defense ETF Locations: Iran, Israel, Damascus, Syria, U.S
Gold could have room for further upside as tensions in the Middle East mount, according to JPMorgan. Spot gold has been on a tear in 2024 with a gain of more than 14%. Prices hit an all-time high of $2,448.80 per ounce intraday on Friday as investors braced for a further escalation in the Middle East. @GC.1 YTD mountain Gold hit a fresh all-time high on Friday, but JPMorgan thinks bullion has more room to run. "Given positioning and recent price action, mean reversion risk in gold still remains elevated in the near-term though geopolitics remain a bullish-skewed wildcard amid risks of an escalating retaliation cycle between Israel and Iran," Shearer said.
Persons: Gregory C, Shearer, " Shearer, Michael Bloom Organizations: JPMorgan, Investors, Federal Reserve Locations: Iran, Israel, Damascus, Syria, @GC
JPMorgan says Iran's drone attack on Israel over the weekend can drive a near-term surge in Lockheed Martin stock. LMT YTD mountain Lockheed Martin stock. "What we can say is that it's a dangerous world and while that is not a sufficient condition for Defense stocks to outperform, it is a potential source of support, especially when they are under-owned." The analyst added that Lockheed Martin and the array of defense stocks could benefit from a small increase to the defense budget last month, forecasting some supplemental spending for Ukraine, Israel and Taiwan. Lockheed Martin stock has lagged the broader market so far in 2024, falling less than 1% through Friday.
Persons: Seth Seifman, Seifman, Lockheed Martin, — CNBC's Michael Bloom Organizations: JPMorgan, Lockheed Locations: Israel, Lockheed Martin, Ukraine, Taiwan
Jack Ma is praising Alibaba. Wall Street is more cautious
  + stars: | 2024-04-14 | by ( Evelyn Cheng | ) www.cnbc.com   time to read: +4 min
Alibaba shares got a boost last week from news founder Jack Ma is pleased with the company's turnaround so far. They cut their price target to $100 a share, down from $105 previously, while maintaining an overweight rating. Eddie Wu became CEO of Alibaba in September, and is also acting head of the cloud business. They cut their price target by $1 to $105 a share and maintained their buy rating. They have a price target of $85, and, in contrast to the many buy ratings, rate the stock equal weight.
Persons: Jack Ma, Joe Tsai, Ma, Alex Yao, Tsai, Nicolai Tangen, We've, Eddie Wu, Trudy Dai, Daniel Zhang, Kenneth Fong, Douyin, Nomura, Doubao, Ernie, Qianwen, monetization, Morgan Stanley, Gary Yu, — CNBC's Michael Bloom, Arjun Kharpal Organizations: CNBC, Wall Street, JPMorgan, Norges Bank Investment, Alibaba, Commerce, UBS, PDD Holdings, Norges Bank Investment Management Locations: China, U.S, Taobao, BABA
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