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CNBC's Jim Cramer examined enterprise software company Datadog 's Tuesday rally, saying the tech stocks' gains aren't over, and the company's success signals good news for peer stocks. "You had to believe in bowling, meaning the pin action that could come from hitting the front pin of the tech phalanx." Cramer said the stock's success also buoyed known partners like Meta , Shopify and ServiceNow , as well as tangential tech stocks. Cramer said this change in Datadog clients' habits could mean fewer problems for other tech and enterprise software companies. According to Cramer, today's tech rally indicates that last week's market gains won't be short-lived.
Persons: CNBC's Jim Cramer, Datadog, Cramer, Wall, I've Organizations: Meta
Check out the companies making headlines in midday trading. Walgreens Boots Alliance — Walgreens Boots Alliance popped 7% in midday trading after sharing that it has made progress in its cost-cutting program. The German shoe brand fell more than 12% in its stock market debut Wednesday. First Solar — The solar stock slipped 1.4%. Fastenal posted third-quarter earnings of 52 cents per share, while analysts polled by FactSet anticipated 50 cents per share.
Persons: Morgan Stanley, it's, Fastenal, FactSet, — CNBC's Brian Evans, Lisa Kailai Han, Hakyung Kim, Samantha Subin, Darla Mercado Organizations: Walgreens, Walgreens Boots Alliance, LSEG, Spotify Technology, Bank of America, Microsoft, RBC, Barclays, Ford, United Auto Workers, Ford's, Revenue, Food, Commercial Workers International Union, Hormel Locations: Ford's Kentucky
Goldman Sachs reiterates Amazon as buy Goldman Sachs said it's standing by its buy rating ahead of earnings later this month. Citi reiterates Netflix as buy Citi said it's standing by its buy rating on the stock heading into earnings next week. Bank of America reiterates Ford as buy Bank of America said its standing by its buy rating on the stock despite the strike at Ford's largest truck plant. Bank of America upgrades Target to buy from neutral Bank of America said it sees an attractive risk/reward for Target shares. " RBC downgrades ResMed to sector perform from outperform RBC said in its downgrade of ResMed that it sees slowing earnings growth.
Persons: Warby Parker, BTIG, Goldman Sachs, Morgan Stanley, it's, JPMorgan, Bernstein, underperform Bernstein, CLX, Ford, Wells, Wells Fargo, Truist, it's bullish, D.A, Davidson Organizations: Citi, Netflix, 4Q23, Barclays, Spotify, Taiwan Semiconductor, JPMorgan, RBC, BMO, Bank of America, Ford's, UAW, Detroit, underperform Bank of America, 3Q, Microsoft, " Bank of America, of America, Exxon Mobil, Exxon, Pioneer, Seaport, Mizuho Locations: 2H24
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
How does a government shutdown affect the stock market? As far as directly affecting the stock market, however, it would be unusual for a government shutdown to be deeply detrimental. According to Evercore senior managing director Julian Emanuel, "the history of government shutdowns has been largely irrelevant for the stock market. It didn't in 1954 and it didn't in 2020, two 'tight government' years," Emanuel wrote. "But when stocks play politics like they are now and will be for another 13+ months, it does mean more volatility."
Persons: Goldman Sachs, Evercore, Jerome Powell, Julian Emanuel, shutdowns, Emanuel Organizations: Capitol, Wall, Federal Reserve, Fed, Representatives, White, Nvidia, Meta, Vertiv Holdings
New York had its share of startup investors and venture-backed companies, but it wasn't a hotbed of tech activity. After four years at the company, Wang left but chose to stay in New York to launch Bearworks, providing software to sales reps. In 2014, prior to the run of New York City IPOs, California was the leader, followed by Massachusetts and then New York. During the record fundraising year of 2021, New York startups received almost $50 billion across 1,935 companies. Northern California has long been the heartbeat of the tech industry, but Murat Bicer remembers what it was like for New York startups before the rush.
Persons: Olivier Pomel, Albert Wang, Datadog, Wang, UiPath, they've, San Francisco's OpenAI, Murat Bicer, Bicer, Datadog's, Pomel Organizations: Datadog, Big Apple, Nasdaq, National Venture Capital Association . Massachusetts, ChatGPT, Investors, Bay, RTP Ventures, RTP, Boston, Index Ventures, New York Times Locations: San Francisco, New York, Boston, Datadog, York, San Francisco Bay, East Coast, Yorkers, , New York, California, New York City IPOs , California, Massachusetts, San Francisco's, PitchBook . Northern California, Silicon Valley, West, West Coast, Europe, Pomel
A Chipotle restaurant and signage is seen on February 09, 2022 in Miami, Florida. The turnaround in Chipotle Mexican Grill 's (CMG) stock price has further runway ahead, CNBC's Jim Cramer said Tuesday. Chipotle stock "is going back over $2,000 [per share], and it's going to do it in a heartbeat," Cramer said. If you like this story, sign up for Jim Cramer's Top 10 Morning Thoughts on the Market email newsletter for free. In the restaurant space, Cramer's Investing Club owns shares of Starbucks (SBUX).
Persons: CNBC's Jim Cramer, Cramer, It's, Baird, Chipotle, Jim Cramer's, LULU Organizations: Investing Club, Starbucks Locations: Miami , Florida, U.S
I never like higher rates at any end of the curve. At every benchmark, you will first hear that every bull market ends because of higher rates. We have done well in the stock market at 7% on the 20-year and well at half that. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Shawn Fain, Fain, He's, haven't, Tesla, , Mike Wilsons, Mike Wilson, Morgan Stanley's, Here's, it's, there's, that's, Jim Cramer's, Jim Cramer, Jim, Jim Cramer Rob Kim Organizations: Companies, Federal Reserve, Big, ARM Holdings, Club, MarketEdge, United Auto Workers, UAW, Ford, ARM, American Free Trade, Netflix, Earth, Apple, Treasury, Fed, CNBC Locations: Mexico, United States, Canada
A Dell Technologies flag outside the company headquarters in Round Rock, Texas, US, on Monday, Feb. 6, 2023. Check out the companies making headlines before the bell:Dell Technologies — Dell Technologies surged 10.5% after exceeding analysts' second-quarter expectations. MongoDB — MongoDB advanced 5% after topping Wall Street expectations in its latest quarter. Lululemon Athletica — Shares added 2.3% in premarket trading after the athletic apparel retailer reported an earnings beat. VMware gave a mixed second-quarter report on Thursday, beating expectations for earnings per share while missing on revenue.
Persons: Refinitiv, Morgan Stanley, Dell, Lululemon, Roz Brewer, — CNBC's Michelle Fox, Alex Harring, Jesse Pound, Samantha Subin Organizations: Dell Technologies, Revenue, Walgreens, Alliance, Vale, JPMorgan, VMware, Broadcom, Broadcom — Locations: Round Rock , Texas
Fiscal second-quarter earnings per share came in at $2.68, versus the $2.54 expected from analysts polled by Refinitiv. PagerDuty — The stock declined 7.7% after PagerDuty issued third-quarter earnings guidance that missed analysts' expectations. The company expects earnings per share between 13 cents and 14 cents for the quarter, below a StreetAccount consensus of 15 cents per share. The company's earnings per share came out at $1.71, however, which was lower than analysts' expectations of $1.76, according to StreetAccount. The database software maker posted adjusted earnings of 93 cents per share on revenue totaling $423.8 million for the second quarter.
Persons: Lululemon, Papa John's, PagerDuty, Baird, Precious, Refinitiv, Morgan Stanley, Dell, Roz Brewer, Tesla, — MongoDB, Yun Li, Alex Harring, Michelle Fox Theobald Organizations: Broadcom, VMware, Refinitiv, Revenue, Dell Technologies, Walgreens, Alliance Locations: San Jose , California, China
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMongoDB CEO Dev Ittycheria on Q2 results: Very please with how company is positioned for the futureMongoDB CEO Dev Ittycheria joins 'Squawk Box' to discuss the company's quarterly earnings results, growth outlook, and more.
Persons: Dev Ittycheria
MongoDB reported earnings of 93 cents per share, excluding items, on revenue totaling $423.8 million in the second quarter. That came in ahead of the earnings per share of 46 cents and $393 million in revenue expected by analysts polled by Refinitiv. The semiconductor company called for fourth-quarter revenue of $9.27 billion, while analysts polled by Refinitiv anticipated $9.275 billion. Meanwhile, analysts polled by Refinitiv expected $1.71 in earnings per share and $3.46 billion in revenue. Lululemon also said it now expects sales of $9.51 billion to $9.57 billion for the fiscal year.
Persons: MongoDB, Dell, Refinitiv, Lululemon Organizations: Refinitiv, Dell Technologies, Broadcom —, VMware
Traders work on the floor of the New York Stock Exchange during morning trading on August 31, 2023 in New York City. Stock futures were near the flat line Thursday night as investors came off a mixed trading session and closed out a month that saw losses for all three stock indexes. Futures tied to the Dow Jones Industrial Average added 22 points, or 0.06%. S&P 500 futures hovered just above flat, while Nasdaq 100 futures inched down by 0.04%. Despite a recent string of positive sessions that helped stock indexes trim their monthly losses, the S&P 500 lost 1.77%, while the Nasdaq shed 2.17%.
Persons: Athletica, Dow, Dow Jones, Alex McGrath, it's, McGrath Organizations: New York Stock Exchange, Stock, Dow Jones, Nasdaq, Dell Technologies, Traders, Federal Reserve, Investors, Dow Locations: New York City
As August is known to be, it's been a rough month-to-date for all three of those stock market benchmarks so far. This past week, the overall market was oversold, according to Jim Cramer's trusted S & P Oscillator. After Friday's strong finish, we'll see if the market's oversold condition abates as two major themes play out in the week ahead: Earnings from two Club names — Salesforce (CRM) and Broadcom (AVGO) — and key economic reports ahead of September's Fed meeting. Outside of the labor market and inflation, we'll also get a look at the housing market with the pending home sales on Wednesday. As we heard from fellow Club name Palo Alto Networks (PANW) last week, companies are growing more cautious and more closely scrutinizing large sales deals.
Persons: Jerome Powell's, Powell, it's, Jim Cramer's, Friday's, , It's, we've, we'll, we're, Salesforce, AVGO, We're, Brown, Forman, Campbell Soup, LULU, Jim Cramer, Jim, Angela Weiss Organizations: Nasdaq, Federal, Nvidia, Dow Jones, Broadcom, Fed, Labor, Club, Palo Alto Networks, VMWare, HEICO Corporation, Bank of Montreal, BMO, Bank of Nova, Hewlett Packard Enterprise, HP, PVH Corp, Patterson Companies, Veeva Systems, UBS, Academy Sports, Hormel, Signet Jewelers, Dell Technologies, Jim Cramer's Charitable, CNBC, Traders, New York Stock Exchange, AFP, Getty Locations: Jackson Hole , Wyoming, China, Bank of Nova Scotia, New York City
Several companies, ranging from under-the-radar biotech names to major software providers, could still rake in major gains this year, according to analysts from Needham. Investors can look to these names for some potential returns after witnessing a series of market losses this month. Analysts at the firm forecast 17% upside to the stock based on Tuesday's closing price. The company reported a beat on second-quarter earnings in July amid negative sentiment on the sector, analyst Ryan Koontz noted. Still, the analyst expects continued upside on revenue and earnings per share, driven by a strong rural fiber access market.
Persons: Needham, Biopharmaceuticals, Ami Fadia, MongoDB, Mike Cikos, Cikos, Ryan Koontz, — CNBC's Michael Bloom Organizations: Needham, Dow Jones, Nasdaq, Management, Education Locations: 2H23
Evercore ISI is calling out its top artificial intelligence enablers, adopters and adapters as the technology's prominence transforms businesses and the world. These names have also seen their next 12 months' EPS estimates revised upward and sit in the top 75% of the index. Both stocks have risen on AI demand about 48% and 152%, respectively, since the start of the year. EPS estimates for Meta and Alphabet have risen nearly 15% and 5%, respectively, since the end of May. MongoDB soared 28% after posting blowout results, with EPS estimates up more than 44% since the end of May.
Persons: Julian Emanuel, Russell, Penny, MongoDB, JPMorgan Chase, Pizza, — CNBC's Michael Bloom Organizations: Nvidia, Meta, Holdings, Arista Networks, Intel, JPMorgan
The 'broadening out' rally is real. Here's how to play it
  + stars: | 2023-07-25 | by ( Bob Pisani | ) www.cnbc.com   time to read: +3 min
The S & P 500 is up 2.3% this month, but the market really is broadening out , and former market leaders (tech and consumer discretionary) are lagging. You might be surprised to discover that about 60 of the 100 companies in the Nasdaq 100 are not technology companies. The Nasdaq 100 includes Airbnb, Marriott, Costco, GE Healthcare, Ross Stores, and Honeywell. First Trust Nasdaq-100 Ex-Technology ( QQXT ) tracks an equal-weighted index of Nasdaq 100 stocks that excludes technology companies. The ProShares S & P Ex-Technology ETF ( SPXT ) tracks a market-cap-weighted index of U.S. large-cap stocks, excluding firms in the technology sector.
Persons: Banks, Russell, Todd Sohn, Dan Ives, Rush, Ives Organizations: Energy, Dow, Technology, Nasdaq, GE Healthcare, Ross Stores, Honeywell, There's, Trust, Ex, Microsoft, Nvidia, Thrones, Oracle, Apple, IBM, Meta, Adobe Locations: Financials, Marriott, Costco
The Open Source Initiative is concerned by Meta's improper labeling. These standards are maintained by the nonprofit Open Source Initiative (OSI), which also reviews whether software licenses can be approved as open source. Open source in AIThe OSI is currently leading a series of meetings and debates and accepting proposals to formally define what open source means when it comes to AI and the machine learning it uses. According to the OSI's Open Source Definition, an open source software license "shall not restrict any party from selling or giving away the software as a component of an aggregate software distribution containing programs from several different sources." Companies like MongoDB, Redis, Confluent, and Elastic, which have long maintained open source software, changed their software licenses to restrict companies like Amazon from selling their software (which would be possible with a true open source license).
Persons: Meta, Stefano Maffulli, Maffulli, it's, Kali Hays, Rosalie Chan Organizations: Meta, Facebook, Initiative, OSI, Apple, Twitter Locations: US, China, Meta, khays
Citi is sharing its top software names to play the booming artificial intelligence market, including two companies it views as "unfairly categorized" as losers. Alteryx shares are down more than 16% this year, while Nice has gained nearly 9%. Radke also said that strong momentum from expanded software and a growing product portfolio should offset fears that AI may hinder Alteryx. Recent analyst day announcements also highlighted ways the company is using AI and machine learning within its data analytics cloud platform, he added. The firm's $70 price target on shares suggests more than 65% upside from Thursday's close, — CNBC's Michael Bloom contributed reporting
Persons: Tyler Radke, MongoDB, Radke, — CNBC's Michael Bloom Organizations: Citi, Nasdaq, Nice Locations: Covid, Israel
July 13 (Reuters) - AI startup Nomic has raised $17 million in a new funding round from investors led by Coatue, the companies told Reuters. The investment valued New York-based Nomic AI, a team of four at the time, at $100 million, showing continued interest from VCs to bet on small teams building popular AI products. Founded in 2022, Nomic has released two products to date, including an open-source AI model, GPT4ALL, which is free to download and could run on devices such as a laptop. Nomic said its goal is to boost the visibility of datasets in model training, and democratize access to AI models. Coatue has made a series investment in open-source AI startups, including Stability AI, Hugging Face and Replit.
Persons: Coatue, Nomic, Andriy Mulyar, GPT, Viswanath, Krystal Hu, Lincoln Organizations: Reuters, Betaworks Ventures, Google, Thomson Locations: York, New York
Here are five stocks chosen by Wall Street's top analysts, according to TipRanks, a platform that ranks analysts based on their past performance. In line with his investment thesis, Setyan reaffirmed a buy rating on the stock with a price target of $123. He explained that his price target reflects a premium valuation, which is "appropriate given our expectation of accelerating market share gains within casual dining for the foreseeable future." Feinseth reaffirmed a buy rating on CCL and boosted his price target to $23 from $13. Accordingly, he reiterated a buy rating and increased the price target to $490 from $365.
Persons: Sanjay Mehrotra, Micron Scott, Wall, Goldman Sachs, Toshiya Hari, Micron's, Hari, Nick Setyan, Setyan, Ivan Feinseth, Feinseth Organizations: Micron, Micron Scott Mlyn, CNBC, Nasdaq, Cyberspace Administration, Tigress, CCL Locations: China, TipRanks, Texas, MDB
Technology analyst Dan Ives sees the rally in the industry's shares continuing in the second half, despite many calls on Wall Street that the gains are getting ahead of themselves. Ives disagrees and doesn't see this as a Dotcom Bubble moment but a "1995 Internet moment" with the boom from artificial intelligence only just beginning. "The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field." XLK YTD mountain S & P 500 tech sector so far in 2023 Ives sees tech stocks up another 12% to 15% in the second half. The analyst's two favorite stocks going into the second half are Microsoft and Nvidia, which are up 40% and 189%, respectively, so far this year.
Persons: Dan Ives, Ives, Rush Organizations: Communications, Microsoft, Nvidia, Wall
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMongoDB Dev Ittycheria on how the AI boom could be impacted by rising ratesDev Ittycheria, MongoDB CEO, discusses whether the AI boom is a bubble or a real investment opportunity.
Persons: MongoDB Dev Ittycheria, Dev Ittycheria
There are too many articles and postings about how we are overdoing artificial intelligence, and how there's not enough substance to justify recent market moves. Still, I am worried about this week because for the first time in a bit I think we need to do some serious digesting. Given the market is officially overbought, I think I will wait until we have a couple of days down before it's worth pulling the trigger. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: That's worrisome, Joe Biden's, Campbell, Jim Cramer's, Jim Cramer, Jim, Squawk, Virginia Sherwood Organizations: Nasdaq, Nvidia, Microsoft, Google, Oracle, Broadcom, Marvell, Research, Federal Deposit Insurance Corporation, Walmart, Costco, Adobe, Strategic Petroleum Reserve, Federal Reserve, CNBC
CNBC's Jim Cramer on Friday provided his game plan for the week ahead, encouraging investors to cool their heels while the market is so overbought. "I think it's going to be worth your while to wait for a price break before you pull the trigger," Cramer said. While the market is closed on Monday for Juneteenth, Cramer will be looking at Raytheon's performance at the Paris air show. On Thursday, Cramer will be focused on Olive Garden parent Darden 's earnings report, as well as investor meetings from software companies Samsara and MongoDB . Cramer thinks CarMax 's Friday earnings report will show that used car prices are coming down, which he said is a good sign for the company.
Persons: CNBC's Jim Cramer, Cramer, Juneteenth, He's, Raj Subramaniam, Darden, CarMax, I'm Organizations: FedEx, Olive Garden Locations: Paris
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