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Speaking at the investment bank's Asia-Pacific Summit 2023 in Singapore, he said that Alphabet has "less significant upside estimates." GOOGL YTD mountain Year-to-date shares of Alphabet Morgan Stanley has cut its target price on Alphabet by around 3%, citing expectations of higher operating expenses and a dip in revenue from key segments. Its previous target price was $155. Meanwhile, its bear case is reflected with a price target of $90 and would follow a slowdown in global ad growth and margin pressures. Of the 56 analysts covering Alphabet, 82% have a buy or overweight call on the stock, at a mean target price of $152.77, according to FactSet.
Persons: Morgan Stanley, Brian Nowak, CNBC's, Nowak, Bard, Google's, Alphabet Morgan Stanley, Morgan, , Isabella Lok Organizations: Meta, Apple, Microsoft, Nvidia, Google, Google's Gemini, Alphabet, YouTube, Cloud, SBC Locations: Asia, Singapore
Shares of tech giant Meta Platforms are set to jump over 10% in the next 12 months, according to Brian Nowak, an equity analyst at Morgan Stanley. While Meta has been on investors' radars, the stock was under pressure last month during a recent tech sell-off. META YTD mountain Year-to-date share price of Meta Going forward, Nowak remains overweight on the tech giant. Nowak also believes the tech giant's strength comes from the discipline on its operating expenditure. It will also result in incremental Reels ad revenue of $11.4 billion in 2024 and $12.9 billion in 2025, the analysts led by Nowak detailed.
Persons: Brian Nowak, Morgan Stanley, Susan Li's, , Li, Nowak, CNBC's, , Isabella Lok Organizations: Meta, Apple, Microsoft, Nvidia, Tesla, Facebook Locations: U.S
Morgan Stanley thinks Meta Platforms is the "cleanest" generative artificial intelligence play in 2024 as the bank focuses on return on invested capital (ROIC) in its AI stock coverage into next year. Analysts led by Brian Nowak assembled a list of potential AI stock winners for 2024, extending from large caps down to smaller companies that offer similarly bullish outlooks. "AI investments, testing and early capabilities continue to grow across the sector," Morgan Stanley wrote. Among smaller stocks, Uber Technologies was also recommended by Morgan Stanley, which has an overweight rating on the ride-sharing provider. "Uber's scale and liquidity gives drivers higher earnings power and riders lower wait times," Morgan Stanley wrote.
Persons: Morgan Stanley, Brian Nowak, Nowak, Monday's, — CNBC's Michael Bloom, Scott Schnipper Organizations: Wall, Nvidia, Microsoft, Facebook, Technologies
Morgan Stanley highlighted several companies that are prepared to withstand — and even benefit from —consumers' shifting preferences this holiday season, as inflationary pressures dampen shoppers' budgets this quarter. According to Morgan Stanley's proprietary monthly survey, most holiday shoppers are looking to see 30% discounts, on average, before they begin spending this holiday season. A strong holiday season should benefit the entire airline industry given the ongoing demand for air travel among consumers across income brackets, according to Morgan Stanley. "Durable goods spending has slowed and that is expected to continue into the holiday season," Wilson said in the note. Toys could emerge as "relative winner" this season as they become a more top-of-mind purchase for parents during the holiday season, analyst Megan Alexander wrote.
Persons: Morgan Stanley, Michael Wilson, Morgan, They're, Ravi Shanker, Wilson, Amazon's, Brian Nowak, Lauren Schenk, Chewy, Morgan Stanley's, Alex Straton, Megan Alexander Organizations: Consumers, Delta Airlines, American Airlines and United Airlines, Southwest Airlines, Alaska Air Group, Apparel, Urban Outfitters, Abercrombie, Fitch Locations: Delta, U.S
Wall Street analysts are standing by Meta Platforms despite the post-earnings sell-off, with some recommending using the pullback to scoop up the stock. "Let's be clear, there's still a lot to get excited about," said Bernstein analyst Mark Shmulik. META 1D mountain Meta shares slump post-earnings Shares were last down about 4%. "We believe Meta continues to execute well & remains disciplined, and we would be buying the pullback in Meta shares," said JPMorgan's Doug Anmuth. "While all advertising may be impacted by geopolitical activity, advertising allocation remains a relative game and we believe META's differentiation gap is widening vs most peers," he said.
Persons: Bernstein, Mark Shmulik, Meta, Doug Anmuth, Ronald Josey, Evercore, Mark Mahaney, Ross Sandler, Morgan Stanley's Brian Nowak, — CNBC's Michael Bloom Organizations: Meta, Facebook, Wall Street, Tech, Barclays
The CEO said subscription business models are "a possible path" for Google's AI products. AdvertisementAdvertisementGoogle CEO Sundar Pichai suggested the company could embrace subscription business models for some of its new AI products. With AI, the CEO said there's an opportunity to evolve Search and the Google Assistant service over the next decade. Wall Street is nervous about any big changes to Google Search because Search ads are so lucrative. Google's "other" revenue rose 21% year-on-year in the third quarter, led by strong growth in YouTube subscription revenue.
Persons: Pichai, Bard, , Sundar Pichai, Morgan Stanley, Brian Nowak, Nowak, Google Bard, there's, they're Organizations: Service, Google, YouTube, NFL, NFL Sunday
Britain scraps cap on banker bonuses inherited from EU
  + stars: | 2023-10-24 | by ( Huw Jones | ) www.reuters.com   time to read: +4 min
A general view of the Bank of England in the City of London, Britain, September 25, 2023. REUTERS/Hollie Adams/File Photo Acquire Licensing RightsLONDON, Oct 24 (Reuters) - Britain on Tuesday scrapped a decade-old cap on banker bonuses inherited from the European Union, signalling a clear divergence in post-Brexit financial rules from the 27-country bloc it left in 2020. The BoE and Financial Conduct Authority proposed scrapping the cap in a public consultation earlier this year, and its abolition was confirmed in final policy published on Tuesday. The TUC confederation of labour unions said the decision to scrap the bonus cap was "obscene". Law firm Linklaters said scrapping the cap puts Britain back into line with the rest of the world, apart from the EU, but it would continue to apply to staff working at EU banks in London who are regulated under the bloc's rules.
Persons: Hollie Adams, BoE, Suzanne Horne, Paul Hastings, Paul Nowak, Linklaters, David Milliken, Iain Withers, Barbara Lewis, Mark Potter, Jonathan Oatis Organizations: Bank of England, City of, REUTERS, European Union, Financial, Authority, London, Finance, TUC, Britain, Thomson Locations: City, City of London, Britain, EU, London, New York, United States, Asia
In the age of AI hype, few companies have used the word "AI" more than Google. Now, Wall Street wants know how it'll turn the hyped tech into dollars and cents. With SGE, Pichai said it'll be able to include "a wider range of sources on the results page, creating new opportunities for content to be discovered." Pichai added that with AI, he sees the opportunity to "evolve search and assistant for the next decade ahead." "It's probably the ultimate example of AI," Pichai said in response to Sheridan's question.
Persons: Bard, Lloyd Walmsley, Pichai, Brian Nowak, Morgan Stanley, Nowak, it'll, Philipp Schindler, we're, Schindler, UBS's Eric Sheridan, execs, Max, Google's, It's Organizations: Google, Deutsche Bank, YouTube, CNBC, Samsung, Toyota
London CNN —All flights have been suspended in London’s Luton Airport following the breakout of a “significant” fire in the airport’s Terminal 2 parking lot, the airport said in a statement on Wednesday. The airport said it would be closed until at least 3 p.m. local time, with passengers advised not to travel to the airport. “Crews have controlled and extinguished the fire at Luton Airport,” it said in a statement posted on X/Twitter. Efforts are still ongoing to extinguish a serious fire at Luton Airport. For anyone whose travel plans may be affected, please refer to the advice being provided by London Luton Airport.
Persons: “ Crews, Andy Hopkinson, Marcin Nowak, Shutterstock Hopkinson, Hopkinson, Tamara Hardingham, Gill Organizations: London CNN, . Bedfordshire, Rescue Service, Luton Airport, Luton DART, London Luton Airport, Airport, Wizz Air, Ryanair Locations: London’s Luton, , Bedfordshire, London
The growth of artificial intelligence soon could have some big implications for the labor market, according to Morgan Stanley. Today, Morgan Stanley pegs the AI impact at $2.1 trillion — affecting 25% of labor. The projections from Morgan Stanley come amid a stellar run for artificial intelligence-related stocks in 2023. Should generative AI adoption among enterprise workloads hit 20% over the next three year, it poses a $150 billion global enterprise spending opportunity, Morgan Stanley projects. An artificial intelligence sign is seen at the World Artificial Intelligence Conference in Shanghai, July 6, 2023.
Persons: Morgan Stanley, Brian Nowak, Nowak, Aly Song Organizations: TAM, Public Cloud, Artificial Intelligence Locations: Shanghai
LAS VEGAS (AP) — It started as a crude sketch — a circle with a stick person inside. He and MSG Ventures CEO David Dibble were trying to create a plan to give the entertainment venue industry a facelift in Las Vegas. “That’s cool,” said Glenn NP Nowak, an architecture professor at the nearby University of Nevada, Las Vegas. However, the Sphere is the most expensive entertainment venue built in Las Vegas, eclipsing the approximately $1.9 billion, 65,000-seat Allegiant Stadium sports facility that opened in 2020. The government here was welcoming and encouraging.”The project started as a partnership with casino company Las Vegas Sands, the then-owner of the Venetian and Palazzo resort towers on the Las Vegas Strip.
Persons: James Dolan, David Dibble, Dolan, , don’t, Dibble, Darren Aronofsky, Glenn NP Nowak, Nowak, Harry Reid, ” Dolan, it's, , I'm Organizations: LAS VEGAS, Garden, New York Knicks, Rangers, MSG Ventures, University of Nevada, Walt Disney, Montreal Biosphere, Avicii Arena, Caesars Entertainment, Harry Reid International Airport, Sands, Las Locations: Vegas, Madison, Las Vegas, Florida, Montreal, Canada, Sweden, London, New York
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
Poland investigates OpenAI over privacy concerns
  + stars: | 2023-09-21 | by ( ) www.reuters.com   time to read: +2 min
A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsCompanies Openai LLC FollowMicrosoft Corp FollowWARSAW, Sept 21 (Reuters) - A Polish watchdog is investigating Microsoft-backed (MSFT.O) OpenAI over a complaint that its ChatGPT chatbot breaks European Union data protection laws known as the GDPR, it said. OpenAI has already faced at least its second class action lawsuit in San Francisco federal court for allegedly breaking privacy laws. "The case concerns the violation of many provisions on the protection of personal data, so we will ask Open AI to answer a number of questions," said Jan Nowak, President of Poland's Personal Data Protection Office (UODO). The complainant said they were unable to find out which of their personal data was processed by the company, and received evasive and misleading answers to questions.
Persons: Dado Ruvic, OpenAI, Jan Nowak, UODO, ChatGPT, Alan Charlish, Jan Harvey Organizations: REUTERS, Microsoft, Google, Thomson Locations: WARSAW, San Francisco federal
Amazon still has room to run as it drives profit back to pre-pandemic levels, according to Morgan Stanley. Analyst Brian Nowak rated Amazon a "top pick" and maintained his overweight rating on the stock. He also kept his price target of $175 on shares, which implies 20.8% upside from Wednesday's closing price of $144.85. "If this 'efficiency upside' plays out, our peer [price/earnings-to-growth] analysis shows how AMZN shares could have 20-60% upside from here." Increased discipline on content spend, which the analyst said can quickly result in billions of retail profit upside.
Persons: Morgan Stanley, Brian Nowak, Nowak, — CNBC's Michael Bloom Organizations: Amazon, Big Tech
Can Plastic Recycling Ever Really Work?
  + stars: | 2023-09-01 | by ( Susan Shain | More About Susan Shain | ) www.nytimes.com   time to read: +2 min
The decision to revert the designation came after the Recycling Partnership, another industry-funded group, gave $6.7 million to recycling facilities to expand their acceptance and sorting of polypropylene.The group now estimates that more than half of recycling facilities in the United States accept and sort the material. Paul Nowak, the executive director of How2Recycle’s parent organization, sees this as a success story. The Environmental Protection Agency estimates that just 2.7 percent of polypropylene containers and packaging was reprocessed in 2018. While Keefe Harrison, chief executive of the Recycling Partnership, acknowledges that little polypropylene is being turned into new material right now, she argues that more investment in sorting and reprocessing facilities would improve the chances. Polypropylene recycling is at a “tipping point,” she said, noting that Oregon is considering including polypropylene on a forthcoming list of recyclable materials that municipalities are required to collect, sort and sell.
Persons: Paul Nowak, , Dell, Keefe Harrison, Matt Seaholm Organizations: Recycling Partnership, Environmental Protection Agency, Partnership, Recycling, Plastics Industry Association Locations: United States, Oregon
Alphabet shares hit a 52-week high Tuesday after showcasing its AI and machine learning capabilities at its annual Cloud Next event. Bank of America's Justin Post said the search company was "flexing its AI muscle," adding that its AI capabilities are a major customer selling point and should be a positive driver for the stock. Along with the hardware updates, Alphabet revealed pricing for a suite of AI-powered tools for enterprise customers. At $30 a month, Citi's Ronald Josey called the contribution "material over time," and said the event should mitigate any "remaining overhangs" on Google's Cloud AI capabilities. Correction: Google shares recently hit a 52-week high.
Persons: Morgan Stanley, Brian Nowak, Nowak isn't, Bank of America's Justin Post, Citi's Ronald Josey, Justin Patterson, Doug Anmuth Organizations: Nvidia, Microsoft, Bank of America's, KeyBanc Capital, Google
Among the new offerings will be a Solar API, which could be used by solar installers like SunRun and Tesla Energy and solar design companies like Aurora Solar, according to a list of example customers viewed by CNBC. Some of the data from the Solar API will come from a consumer-focused pilot called Project Sunroof, a solar savings calculator that originally launched in 2015. It also offers 3D modeling of the roofs of buildings and nearby trees based on Google Maps data. At the time, Morgan Stanley had estimated Google Maps would earn $11.1 billion by this year as new travel products and promoted pins began to increase ad revenue. In June, CNBC found the company was laying off employees at traffic-reporting app Waze, which it acquired in 2013, and combining it with the Google Maps team.
Persons: There's, it's, Morgan Stanley, Brian Nowak Organizations: CNBC, Tesla Energy, Google, Marriott, Amazon, Microsoft
"For most of our history, profitable wasn't the first thing that came up when you asked someone about Uber," Khosrowshahi said on Uber's second-quarter conference call Aug. 1. The $1 a ride alone can add up to $4,000 to a driver's annual revenue, the company says. All of them will compete for customers on Uber's platform much as hotels search for business on Expedia.com – a business once run by Khosrowshahi. Indeed, one threat to Uber's current status as a market darling is if AV makers, especially Tesla, decide to compete with Uber directly for riders, Zino said. Khosrowshahi told Sellers that 10-20% of Uber drivers may soon be robots, but said he still thinks more people will be driving for Uber than there are today.
Persons: Angelo Zino, Uber, Savannah, Khosrowshahi, Dara Khosrowshahi, Zino, Scott Devitt, Morgan Stanley's Brian Nowak, undercharging, They've, Devitt, , Hertz, That's, Tracy Lynn Young, Tesla, they've, Cruise, AVs, Sellers Organizations: GM, General Motors, Ideas, Uber Technologies, Aurora, Wedbush Securities, Hyundai, Tesla, EVgo, EVs, TrueCar.com, Uber, CNBC, Hertz, Waymo, Cruise, Khosrowshahi Locations: California, San Francisco, Pittsburgh, Hyundai Kona, London, U.S, North America, Atlanta
REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsCompanies JPMorgan Chase & Co FollowWASHINGTON, Aug 22 (Reuters) - Two former precious metals traders at JPMorgan Chase (JPM.N) were sentenced on Tuesday for engaging in fraud, attempted price manipulation and spoofing, the U.S. Justice Department said in a statement. Gregg Smith, 59, of Scarsdale, New York, was sentenced to two years in prison and a $50,000 fine while Michael Nowak, 49, of Montclair, New Jersey, was sentenced to one year and one day in prison and a $35,000 fine, the Justice Department said. Last year, Smith and Nowak were found guilty of fraud and other charges but acquitted of racketeering and conspiracy in a trial. Nowak was convicted on over a dozen charges including fraud, spoofing and attempted market manipulation, and Smith was convicted on 11 charges. JPMorgan agreed in 2020 to pay more than $920 million and admitted to wrongdoing to settle with the Justice Department and the Commodity Futures Trading Commission over these and other traders' conduct.
Persons: Andrew Kelly, Gregg Smith, Michael Nowak, Dodd, Frank, Smith, Nowak, Kanishka Singh, Andy Sullivan Organizations: United States Department of Justice, Washington , D.C, REUTERS, JPMorgan Chase, WASHINGTON, U.S . Justice Department, Justice Department, U.S, Congress, JPMorgan, Commodity Futures Trading Commission, Thomson Locations: Washington ,, Scarsdale , New York, Montclair , New Jersey, Washington
AMZN 1D mountain Amazon popped after strong earnings JPMorgan's Doug Anmuth reiterated an overweight rating on Amazon and raised his price target to $180 price target, implying roughly 40% upside from Thursday's $128.81 close. Anmuth said on Friday that the second-quarter results and third-quarter outlook will help lift shares higher, and also pointed to strength in Amazon Web Services. Goldman Sachs analyst Eric Sheridan also hiked his price target to $180 from $165, keeping his buy rating on the stock. Bank of America's Justin Post, meanwhile, raised his price target to $174 from $154, implying a 35% gain from Thursday's close. Morgan Stanley's Brian Nowak increased his price target on Amazon to $175 to $150 and reiterated his overweight rating.
Persons: Doug Anmuth, Anmuth, AMZN, Goldman Sachs, Eric Sheridan, Sheridan, headwinds, Bank of America's Justin Post, Citi's Ronald Josey, Josey, Morgan Stanley's Brian Nowak, Nowak, Michael Bloom Organizations: Wall, Amazon, Web Services, Bank of America's, Amazon Web Services, 3Q Locations: Thursday's
Wall Street analysts are bullish on Amazon heading into earnings. Here's how several analysts are trading Amazon ahead of its latest earnings report. Bank of America is also bullish, maintaining its buy rating and $154 price target into earnings, which suggests roughly 20% upside. "We continue to see an attractive set-up on the stock based on our Triple Trough Thesis (trough multiple, trough margin, and trough revenue growth). On Monday, the firm reiterated its buy rating and $145 price target, which suggests 13% upside from Wednesday's close.
Persons: StreetAccount, Morgan Stanley, Brian Nowak, Nowak, Lloyd Walmsley, Walmsley, Justin Post, Amazon's, Mark Mahaney's, Mahaney, — CNBC's Michael Bloom Organizations: Amazon Web Services, UBS, Bank of America, AWS, Triple, Citi Locations: 1Q23
Google-parent Alphabet posted strong second-quarter numbers that had many Wall Street analysts gushing. Goldman Sachs analyst Eric Sheridan reaffirmed a buy rating on Alphabet stock, with his $152 price target implying more than 24% upside. Citi's Ronald Josey maintained a buy rating on with a higher $153 price target, which amounts to more than 25% upside for Alphabet stock. "As revenue growth reaccelerates on an improving online advertising environment and management's greater focus on operating efficiencies, we look for margins to expand going forward as revenue growth consistently outpaces opex growth," Josey said. Wells Fargo analyst Ken Gawrelski reiterated an equal weight rating on Alphabet stock on Wednesday, although with an increased $121 per share price target.
Persons: Morgan Stanley's Brian Nowak, Nowak, Bard, OpenAI, Goldman Sachs, Eric Sheridan, Sheridan, Bank of America's Justin Post, Citi's Ronald Josey, Josey, Wells, Ken Gawrelski, Michael Bloom Organizations: Google, Refinitiv, GOOGL, Microsoft, Bank of America's, Citi, Google Cloud Services, DOJ
The forthcoming quarterly results from Meta Platforms on Wednesday have analysts chomping at the bit. Ahead of Meta's second-quarter results on Wednesday after the closing bell, here's how some analysts on Wall Street are trading the social media behemoth. Citi analyst Ronald Josey reiterated a buy rating on Meta stock on Tuesday, accompanied by a $360 per share price target. META YTD mountain Meta stock has surged nearly 150% from the start of the year. Bank of America's Justin Post reiterated his buy rating on Meta stock in a July 17 note with a $350 per share price target, similarly to Nowak.
Persons: Ronald Josey, Josey, Morgan Stanley's Brian Nowak, Nowak, of America's Justin Post, Post, — CNBC's Michael Bloom Organizations: Meta, Facebook, JPMorgan, FactSet, Citi, Microsoft, of America's
Snap stock drops 19% on weak forecast
  + stars: | 2023-07-26 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com   time to read: +1 min
Snap shares plunged at the start of trading, falling 19% as analysts and investors recoiled from a weaker-than-expected forecast for the current period. Overall sales declined 4% year-over-year, with a slightly-than-expected lower-end total sales forecast for the third quarter. The broader social media industry has become "harder" to forecast in, CEO Evan Spiegel said in an interview with CNBC's Julia Boorstin on Wednesday. Morgan Stanley maintained a $6.5 price target and an underweight rating on the social media stock. Bank of America analyst Justin Post reiterated a neutral rating and an $11 price target.
Persons: Evan Spiegel, CNBC's Julia Boorstin, Morgan Stanley, Brian Nowak, Nowak, Justin Post, CNBC's Michael Bloom Organizations: Viva Technology, Bank of America, Online Locations: Paris, North America
Morgan Stanley's top picks for the rest of earnings season
  + stars: | 2023-07-26 | by ( Hakyung Kim | ) www.cnbc.com   time to read: +4 min
While Wall Street's expectations are lower this corporate earnings season, there are still several stocks Morgan Stanley said could rise in the near term. Morgan Stanley's estimates for second-quarter earnings are down 9% year to date and flat sales growth, which the firm attributes to lagged and elevated costs. Amazon is one of Morgan Stanley's top picks for this earnings season. The firm believes potential catalysts include positive earnings revisions and its AWS Summit on cloud computing and generative artificial intelligence. He added that multiple appreciation and earnings revisions could drive the stock upward.
Persons: Morgan Stanley, Morgan Stanley's, Michelle Weaver, Brian Nowak, Brian Harbour, Yum, Elizabeth Porter, Porter, — CNBC's Michael Bloom Organizations: Pharmaceutical, Merck, Pfizer, Devices, Tech, Amazon, Yum Brands, Taco Bell Locations: North America, China
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