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Meanwhile, limits on applicable copyright rules make it simpler to train AI tools. Nevertheless, accuracy issues with AI tools, Redburn said, could boost the use case for Pearson. Copyright issues are another major obstacle for music companies. Some potential copyright violations include replicating an artist's likeness or voice, and that could weaken the catalog value for many music companies, analysts said. Similarly, Deutsche Bank analyst Matthew Niknam highlighted in a recent note AI presents more opportunities than risks and offers "underappreciated upside tailwinds" for Five9.
Persons: GOOGL, Goldman Sachs, Dan Rosensweig, Chegg, Brad Erickson, Hayden Brown, Brown, BTIG, Chegg's, Pearson, Redburn, Morgan Stanley, Brent Thill, Thill, Douglas Mitchelson, Rosenblatt, Barton Crockett, Morgan Stanley's Omar Sheikh, Ygal, Nat Schindler, Wix, Jefferies, Oppenheimer, Timothy Horan, Matthew Niknam, Meta Marshall, Marshall, Michael Bloom Organizations: Wall Street, Microsoft, Nvidia, Goldman, Chegg, Companies, Freelance, Upwork, RBC Capital, Pearson, Bank of America, UBS, Jefferies, Industry Music, Spotify, Credit, Warner, Warner Music Group, Universal Music Group, Citi, NICE, Deutsche Bank Locations: Nice
Bank of America named a slew of tech stocks that are just too attractive to ignore. IBM The evolution of IBM continues, Bank of America analyst Wamsi Mohan said after attending the company's recent Think event. "We believe IBM will embark on further cost cutting, and enhance its services and software offerings through acquisitions," he said. The stock finished the week up 3.6% this year, and Bank of America sees plenty more gains for the legacy tech giant. IBM "IBM expect to monetize AI first through Services and expects a later inflection in Software as adoption scales.
Gamification and artificial intelligence are "a winning combination" for language-learning app maker Duolingo , according to Bank of America. Analyst Nat Schindler, who reiterated his buy rating on the company, boosted his price target on Duolingo shares to $160 from $105. The analyst highlighted a new AI-driven paid subscription, Duolingo Max, that could boost the company's growth prospects, according to a Wednesday research note. The service includes new AI features powered by GPT-4, including a role-play function to allow users to practice conversations. To be sure, the analyst noted potential risks to his valuation include competition from peers adopting new technology or formatting.
Shares of Tripadvisor are poised to rally as travel demand recovers and consumers book more experiences, Bank of America said. Analyst Nat Schindler double-upgraded the travel booking company to buy from underperform, citing strong growth within the company's experiences booking platform known as Viator. In the third quarter, the experiences platform accounted for 38% of Tripadvisor's total revenue, compared to 18% in 2019, Bank of America said. At the same time, he views Tripadvisor's core business as an offering that could support further experiences growth. "Core TRIP remains a cash cow that while not a significant grower over time can both fund and drive customers to high growth Viator," he said.
With recession fears mounting for 2023, Bank of America has small-cap picks it expects will be resilient in a downturn — and even have some upside. Given this, Bank of America picked out 35 of its best small- and mid-cap ideas for 2023, including one e-commerce stock called Xometry that's expected to roughly double from here. These names could rise 24% on average, based on their 12-month price targets, according to the note. Xometry , an online marketplace for industrial parts, will roughly double to its $60 price target, according to Bank of America. Meanwhile, Planet Fitness will benefit in a recession, as consumers trade down from higher-priced gyms, the bank said.
Analysts at Bank of America unveiled this week a slew of must-own stocks for 2023. CNBC Pro combed through recent research to find Bank of America's 'best-in-class" stocks heading into next year. "Although 2022 has been a year of modest growth for Lilly, shares have outperformed based largely on tirzepatide's peak potential," he wrote. Eli Lilly "Although 2022 has been a year of modest growth for Lilly, shares have outperformed based largely on tirzepatide's peak potential. Given this backdrop, Lilly remains a top pick, as we see its new product cycle / LT growth as clearly best-in-class."
Hold off on Carvana for now as the stock could go one of two ways, according to Bank of America. Analyst Nat Schindler downgraded Carvana to neutral, saying that the online car retailer is badly in need of more liquidity as it struggles to turn profitable. "We now believe that without a cash infusion, Carvana is likely to run out of cash by the end of 2023. However, a cash infusion could mean a rapid turnaround for the company, according to the analyst. "Our bear case is quite simple: without a cash infusion, liquidity will dry up and the equity value goes to zero."
The growth of ad-supported streaming at scale is set to challenge the $60 billion TV ad business. One top internet executive, IAC CEO Joey Levin, says Netflix will destroy networks' scarcity argument. Wall Street also is waiting to see if Netflix draws ad dollars from social media or TV. Traditional TV networks are about to lose one of their main arguments for charging big rates for ads. Netflix's arrival on Madison Avenue next year is going to erode the hugely lucrative TV ad business, said Levin, who spoke with Insider in September.
Shares of Netflix have been on tear since Tuesday evening when the streaming giant beat expectations in its third-quarter earnings report. Markets InsiderThe upbeat report came after the firm suffered two dismal earnings reports in the first half of the year. On Wednesday morning, Wall Street firms released their analyses of the stock, and updated their price targets for it. It reissued both its underweight rating on the stock and price target of $196, which is 27% downside from current levels. While acknowledging that adding subscribers in the US and Canada would be difficult, he said the firm could increase revenues through price hikes.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNetflix's new ad product could encourage existing users to downgrade, says BofA's Nat SchindlerBank of America analyst Nat Schindler joins 'TechCheck' to discuss the limited profitability of Netflix, concerns regarding the company's new ad-supported subscription service and considerations on the real elasticity of demand for Netflix.
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