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Stocks finished mixed after a volatile session that saw big swings after the Fed meeting. Policymakers kept rates steady but indicated that two more increases could come later this year. Fed Chairman Jerome Powell also said rate cuts would be more appropriate "a couple of years out." Central bankers kept rates steady at 5%-5.25% but indicated in their "dot plot" projections that two more increases could come later this year, a more hawkish signal than what Wall Street anticipated. Meanwhile, policymakers will assess incoming data, including credit conditions that may have a role in tightening macroeconomic conditions, he added.
Persons: Stocks, Jerome Powell, , Elon Musk's, Goldman Sachs, Wells, Ken Griffin, Bitcoin, MicroStrategy's Michael Saylor Organizations: Service, Federal, JPMorgan, Citi Locations: Wells Fargo
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNvidia needs to dominate the A.I. market to justify its price point, says NYU's Aswath DamodaranAswath Damodaran, NYU School of Business professor, joins 'Closing Bell' to discuss Cava's IPO comeback and the multiples for big tech.
Persons: NYU's, Damodaran Organizations: Nvidia, NYU School of Business
Nvidia is worth holding for two to three years, Stanley Druckenmiller said in a Bloomberg conference. His bullishness comes as other investors have called Nvidia overvalued. His bullishness comes as other investors have called Nvidia overvalued after it briefly soared to a market cap of $1 trillion last month. During the Bloomberg interview, Druckenmiller also noted that even if a hard landing for the economy affects some AI development, he expects Nvidia to thrive in the long run. In the first quarter, his family office snapped up $220 million worth of the chipmaker's stock.
Persons: Stanley Druckenmiller, Druckenmiller, , he'd, Bard, they're, Cathie Wood, Asmath Damodaran, Goldman Sachs Organizations: Nvidia, Bloomberg, Microsoft, Service, Privacy, Bloomberg Invest, Duquesne Family, Bank of America, ARK
However, Ark Invest's flagship Ark Innovation ETF (ARKK) exited its position in Nvidia entirely in early January —before the chipmaker enjoyed a powerful rally that propelled it to a $1 trillion market capitalization. We saw this potential for deep learning and enjoyed a lot of that ride," said Frank Downing, a research director at Ark Invest. The growth of the industry and the urgent need for powerful AI hardware has led to an increase in the number of companies entering the market. Ark Invest hasn't been alone in trimming an Nvidia stake. However, despite exiting a portion of their Nvidia positions, both Ark Invest and Damodaran maintain a favorable outlook for the company.
Persons: Ark, , We've, Frank Downing, Downing, CNBC's, we've, Aswath, University's Organizations: Tech, Nvidia, AI, Innovation, Ark Invest, ARK Autonomous Tech, Robotics, Google, Amazon, AWS, AMD, Intel, University's Stern School of Business, NYU's Stern School of Business, Ark, Damodaran Locations: New
The Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS) was one of the top 10 ETFs for inflows over the past week, pulling in more than $400 million, according to FactSet. Meanwhile, more than $500 million were pulled out of the Direxion's Daily Semiconductor Bull 3x Shares ETF (SOXL) , the fourth-most outflows over the past week. As a result, their flows can reverse quickly and are not necessarily a good measure of long-term outlook for chip stocks. The VanEck Semiconductor ETF (SMH) , which would be better suited to long-term investors, saw inflows of less than $40 million this week, a slowdown from prior weeks. Here are the top five ETFs by inflows over the past week.
Persons: Aswath Damodaran, Russell Organizations: A.I, Nvidia, Philadelphia Semiconductor, NYU, CNBC, Daily Semiconductor, VanEck Semiconductor, Bond
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with NYU's Aswath Damodaran and Truflation's Stefan RustAswath Damodaran, professor of finance at New York University's Stern School of Business and Stefan Rust, CEO of Truflation, join 'The Exchange' to discuss the Fed's fight against inflation, using blockchain technology to measure inflation in real-time, and leading versus lagging indicators of inflation.
Persons: NYU's Aswath, Stefan Rust Aswath Damodaran, University's, Stefan Rust Organizations: University's Stern School of Business, Truflation Locations: New
Aswath Damodaran sold half his stake in Nvidia after the recent share surge for one simple reason: value investing. Nvidia shares have taken a big leg up in recent days, after a jaw-dropping quarterly earnings report showed booming demand for artificial intelligence. NVDA YTD mountain Nvidia shares have soared this year on the growth in AI applications. Nvidia gave up some of its wins Wednesday, but last traded more than 5% higher Thursday. Even though Damodaran sold half his stake, the esteemed finance professor retains a positive stance on Nvidia, viewing it as an "opportunistic chipmaker" and "amazing" company.
Persons: Aswath Damodaran, CNBC's, Damodaran Organizations: Nvidia, NYU's Stern School of Business
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBlockchain provides transparent real-time inflation gauge, says Truflation's Stefan RustAswath Damodaran, professor of finance at New York University's Stern School of Business and Stefan Rust, CEO of Truflation, join 'The Exchange' to discuss the Fed's fight against inflation, using blockchain technology to measure inflation in real-time, and leading versus lagging indicators of inflation.
Persons: Truflation's Stefan Rust Aswath Damodaran, University's, Stefan Rust Organizations: University's Stern School of Business, Truflation Locations: New
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStocks won't see sustainable rally without clarity on inflation, says NYU's Aswath DamodaranAswath Damodaran, professor of finance at NYU's Stern School Of Business, and Chris Senyek, Wolfe Research chief investment strategist, joins 'The Exchange' to discuss tech companies carrying the market, disparities between old and young tech, and the macroeconomic picture.
Stock futures fell slightly on Sunday night as investors await a slew of corporate earnings from big tech companies, as well as fresh economic data releases. First quarter earnings for S&P 500 companies are estimated to decline an overall 5.2%, according to Refinitiv data. Wall Street is looking ahead toward mega-cap tech earnings results this week in what will mark the halfway point of earnings season. "Part of the reason why we're so focused on the economic data is we think the investor narrative is still around the Fed and interest rates. I think, to some extent, the Fed rate hike slowed down the economy.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMega-cap tech valuations are not expensive relative to the rest of the market, says NYU's DamodaranAswath Damodaran, NYU Stern School of Business professor of finance, joins 'Closing Bell' to discuss whether the mega-cap stocks are too expensive, how Damodaran sees Meta's 'year of efficiency', and how to accurately judge the valuations.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed is a side story — inflation and the economy are the market drivers, says NYU's DamodaranAswath Damodaran, NYU Stern school of business, joins 'Closing Bell: Overtime' to discuss macro issues in the market.
Bloomberg | Bloomberg | Getty ImagesIndia's supreme court has set up an independent panel to investigate if there were regulatory failures related to allegations against the Adani Group , after a bombshell report from a U.S. short seller. The country's highest court directed a six member panel to probe "regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group," a Thursday court order said. India's Supreme Court action comes slightly over a month after Hindenburg Research released a lengthy report on Jan. 24, accusing Adani Group of stock manipulation and fraud. The panel will be headed by Justice Sapre, a retired judge of the Supreme Court. Both institutions told CNBC recently that their exposure to the Adani Group was manageable.
The sprawling Adani Group, which he founded over 30 years ago, has established interests in industries ranging from logistics to mining. “We view this as validation of our findings on offshore stock parking by Adani,” Hindenburg founder Nate Anderson said on Twitter. In its report, Hindenburg had alleged that “offshore shells and funds tied to the Adani Group comprise many of the largest ‘public’ holders of Adani stock.”An Adani Group spokesperson declined to comment. Meanwhile, Norway’s sovereign wealth fund, said Thursday it has “for all practical purposes…fully divested,” from the Adani companies. The loans were backed by shares in Adani Ports, Adani Green Energy and Adani Transmission.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with NYU's 'Dean of Valuation' Aswath DamodaranAswath Damodaran of the New York University's Stern School of Business discusses the Adani crisis, and says "this is the Indian market in a nutshell, Adani is not the exception."
The Adani Group didn't play a "con game" but has exploited the "weakest links" in India's institutions to its advantage, according to NYU's "Dean of Valuation" Aswath Damodaran. It's not healthy for a market," Damodaran, told CNBC's "Streets Sign Asia" on Thursday. "That's why I said Adani is not about the company … this is about the weakest links in the India story. Art school teacher Sagar Kambli gives final touches to a painting of Indian businessman Gautam Adani (L) highlighting the ongoing crisis of the Adani group in Mumbai on February 3, 2023. The Adani Group firmly denied the accusations, calling it a "calculated attack on India" and its institutions.
The loans were backed by shares in Adani Ports, Adani Green Energy and Adani Transmission, which have collapsed in value. While the Adani Group has vehemently denied the allegation made by Hindenburg Resarch as “baseless” and “malicious,” investors remain unconvinced. Adani companies will be reporting quarterly results this week. Moody’s said Friday that the plunge in the shares of Adani companies was likely to reduce the group’s ability to raise capital. Another agency, S&P, cut the outlook for its ratings on two companies, Adani Ports and Adani Electricity, to negative from stable, citing the risk of higher funding costs or reduced access to capital.
Tesla needs to separate itself from Elon Musk's personality to win back investors, according to NYU's Aswath Damodaran. Shares of Tesla have cratered more than 70% from their record high as investors grow concerned about Musk's focus on Twitter. "You're no longer buying a company, you're buying a human being," Damodaran said. "It's a danger buying a company that's so closely tied to a personality that you're no longer buying a company you're buying a human being," Damodaran said. Meanwhile, a Tesla shareholder in Iceland submitted a resolution for Tesla investors to vote on in May as to whether the board of directors should prepare and maintain a key-risk report, according to the LA Times.
Watch CNBC’s full interview with NYU's Aswath Damodaran
  + stars: | 2023-01-05 | 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 EmailWatch CNBC’s full interview with NYU's Aswath DamodaranAswath Damodaran, NYU Stern School of Business professor of finance, joins 'The Exchange' to discuss mega cap stock valuations in an inflationary environment.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNYU's 'Dean of Valuation' on Netflix: The business is broken and off my listAswath Damodaran, NYU Stern School of Business, joins 'The Exchange' to discuss mega cap stock valuations in an inflationary environment.
Elon Musk says his $44 billion Twitter takeover might result in a bankruptcy filing. To make the deal work, Mr. Musk has been trying to add subscription revenue and reassure advertisers about the platform’s future. What’s more, the company’s debt stack now includes floating-rate debt, meaning that interest costs are set to rise as the Federal Reserve continues to increase interest rates. Twitter’s credit ratings, which were below investment grade before the transaction with Mr. Musk, have deteriorated further. For that, Mr. Musk would need to persuade potential investors that he has a viable long-term business plan, he said.
Watch CNBC's full interview with NYU's Aswath Damodaran
  + stars: | 2022-11-11 | 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 EmailWatch CNBC's full interview with NYU's Aswath DamodaranAswath Damodaran, NYU professor of finance, joins 'Power Lunch' to discuss the recent story at Meta, the stock's moves this week and more.
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailI've yet to hear from Meta about how they plan to make money on the metaverse, says NYU's DamodaranAswath Damodaran, NYU professor of finance, joins 'Power Lunch' to discuss the recent story at Meta, the stock's moves this week and more.
But for the moment, I can understand why India is an attractive market for a lot of foreign institutional investors." Indian Prime Minister Narendra Modi has plans to make India a $5 trillion economy by 2024-25. While downgraded, India's growth forecast still cuts higher than others in the Asia-Pacific. Modi has plans to make India a $5 trillion economy by 2024-25, while Adani said at a recent Forbes conference in Singapore that India will go from a $3 trillion economy to a $30 trillion one in the next 25 years. Adani said at a recent Forbes conference in Singapore that India will go from a $3 trillion economy to a $30 trillion one by 2050.
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