Weekly Buzz : Meta brings home the Mag Seven gold
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Weekly Buzz | Meta Brings Home the Mag Seven Gold
Friday finished off a busy week for the moomoo news writers. This week saw an FOMC meeting alongside the earnings announcements for more than 19% of the S&P, including investor favorites $Alphabet-C(GOOG.US$, $Advanced Micro Devices(AMD.US$, $Apple(AAPL.US$, $Amazon(AMZN.US$, and $Microsoft(MSFT.US$.
This time around, it was $Meta Platforms(META.US$'s time to shine, with shares climbing a whopping 20% buoyed by its earnings blowout. The firm announced dividends, which set it apart compared to other Mag Seven companies that supported earnings that were great, but not perfect enough to impress.
Friday, the $S&P 500 Index(.SPX.US$ inched closer to the pivotal 5,000 level, extending its record-breaking rally that was fueled by the surge in Magnificent Seven stocks. For the week, the $S&P 500 Index(.SPX.US$ rose 1.38% to close at an all-time high of 4,9958.61, while the tech-heavy $Nasdaq Composite Index(.IXIC.US$ gained 1.12%. The $Dow Jones Industrial Average(.DJI.US$ advanced 1.43% to 38,654.42, also a record.
The biggest news this week aside fro mearnigns was FOMC drama on Wednesday. Indexes pushed higher when the committee announced no rate change, but Powell said he had little confidence that rates would come down in March, sending markets red. It took until Meta's earnings to pull the market back up.
$Amazon(AMZN.US$ also dominated, advancing after better-than-expected financial results. The tech giant's cloud business, the Amazon Web Services, saw revenue growth accelerate, prompting analysts to raise their price target on the stock.
Friday data showed tyhe US economy added 353,000 jobs in January, almost double the market consensus of 185,000 expected, keeping the unemployment rate at 3.7%, data from the Bureau of Labor Statistics showed. Average hourly earnings hourly earnings increased by 4.5 percent over the past year.
That could add wage pressures on consumer prices, complicating the decision process for the Federal Reserve that's seeking a mountain of evidence that inflation is staying on its downward trajectory to 2% before starting to cut interest rates.
Let's dive into the weekly buzzing stock list this week:
Tesla shares slipped 3% Friday after reports that the electric vehicle maker has cut prices on some car models sold in Canada by as much as 6.9%. The latest price cut adds to a pile of evidence signalling heightened competition after Tesla lost its crown to Chinese auto company BYD as the biggest EV maker in the fourth quarter.
Tuesday, AMD projected lower-than-expected revenue in the first quarter, citing weakness in some of its core markets even as sales of artificial-intelligence chips grow. AMD expects around $5.4 billion of sales in the current quarter, the company said, up from $5.35 billion the same period last year but behind Wall Street forecasts, according to FactSet.
@impartial Lemur_7218 : A lot of fear
Tuesday, In a recent episode of CNBC's "Mad Money," host Jim Cramer discouraged viewers from investing in AMC, citing the company's recent performance. Instead, he recommended Northrop Grumman Corporation and John Bean Technologies Corporation. He suggested that the company's stock isn't performing well, attributing this to a decline in moviegoers.
@ur wifes boyfriend: they should bring back ape instead of selling new amc shares.
Nvidia Corp. is the "clear beneficiary" of Meta Platforms Inc.'s rampant spending on artificial intelligence, according to analyst Aaron Rakers from Wells Fargo. The Facebook parent company now expects to spend $30 billion to $37 billion on capital expenditures this year, whereas it was projecting $30 billion to $35 billion previously.
@72913498: this stock is a beast, keeps on running
Investor sentiment around SoFi stock was particularly elevated on Jan 29, as the company reported fourth-quarter earnings. The San Francisco-based company reported its first-ever positive EPS and a 3.98% surprise on revenue.
@GWPolarBear: Fuel That fire and let's take this to the moon
Microsoft posted beats across the board with its latest results Tuesday afternoon, calling out momentum in the cloud and traction with artificial intelligence. Microsoft's Azure and other cloud-services businesses posted revenue growth of 28% on a constant-currency basis in the fiscal second quarter. Analysts expected Azure constant-currency revenue growth of 27% for the period.
@Noah Johnson: Microsoft's Strong Earnings Report Struggles Against Pressure from High Valuation
Nio delivered 10,055 vehicles in January, up 18% from the same month a year earlier, the company said Thursday. The deliveries were composed of 6,307 smart electric sport utility vehicles and 3,748 smart electric sedans.
@菜鸟330: Rubbish
Remark shares are trading lower Wednesday after rallying more than 260% on Tuesday as traders circulated a social media post from the company about a partnership with Microsoft. After the market close on Tuesday, the company provided more details on the partnership, which resulted in a steep selloff.
@starr67 : it'll run again hopefully when Trump wins lol
Apple Inc. broke its four-quarter streak of revenue declines in the holiday quarter, eking out 2% growth on the heels of better-than-expected iPhone sales. Still, shares of $Apple(AAPL.US$ fell nearly 3% in extended trading Thursday after the company logged a sharp miss on revenue from Greater China.
@SkyHero: HOLDDDDDDD moreee moreee moreee
Super Micro Computer rose 23% Thursday after big tech earnings proved the demand for artificial intelligence-driven computing is driving accelerating revenue growth and profits for this leading supplier of rack-scale solutions for data centers.
@PhotoSynth: Way higher! The stock has to take it easy to allow for some consolidation, but the discovery of the company by so many new interests, it appears that people are actuaally looking into the numbers...
Thanks for reading!
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Weekly Topic
After Meta's giant $200B MK jump Friday, do you think there is any way the Facebook parent can deliver for the rest of the year?
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102362254 : $Meta Platforms (META.US)$’s surge in market cap on Friday was a historic feat, marking the biggest one-day gain and setting a high bar for the year. Despite cost-cutting, it heavily invests in AI, focusing on generative AI tech for social media and advertising. With a $50 billion stock buyback and its first dividend, Meta signals financial strength and should be able to deliver for the rest of the year. The AI-centric growth strategy, including new tools and ad efficiency, positions Meta for sustained long-term success, showing resilience and innovation in the tech industry.
HuatLady : $Meta Platforms (META.US)$, one of the Magnificent 7 stocks has gained 20% from its impressive digital advertising profits. There are many reasons to consider it as a sustainable investment in the long-term, because of the following factors:
$Meta Platforms (META.US)$ has a clear and strong strategy to achieve its vision.
$Meta Platforms (META.US)$ has Zuckerberg, a skillful and visionary leader at its helm.
$Meta Platforms (META.US)$ has multiple innovations and researches to stay ahead of the competition.
Hence, I believe $Meta Platforms (META.US)$ has what it takes to deliver for the rest of the year.
HuatEver : Some Analysts question $Meta Platforms (META.US)$ long-term growth due to ESG risks. CEO Mark Zuckerberg, while acknowledging tech’s volatility, remains confident in advancing AI and the Metaverse. He has implemented a “year of efficiency” that reduced costs and increased profitability. His cost-cutting measures lead to a fifty cents per share cash dividend, which is likely appealing to investors seeking steady returns.
小trader : During the earnings call, Meta CEO Mark Zuckerberg emphasized increased investments in artificial general intelligence, metaverse, compute resources, and AI applications across services. While this underscores Meta's growth commitment, uncertainties arise from rising expenses and limited revenue visibility for 2024. With Meta priced at a premium, it might be wise to wait for a more favorable valuation before considering a stock purchase.
ZnWC : The Friday jump in share price can be attributed to 2 factors first is better than expected earnings. Revenue jumped over 15% while total operating costs increased by barely a percentage because of the mass layoffs. Second is the dividend announcement. Meta is paying $0.50 in dividends each quarter, amounting to a meager 0.43% annual dividend yield. Analysts project dividends could double to around $4 in 2029, which it could easily cover, given its free cash flow is projected to more than double.
As for the rest of the year, it can be a challenge given Meta’s reliance on ad revenue. It is said that close to 95% of Meta’s revenue comes from ads. A possible mild recession in 2024 could crush analyst estimates for Facebook if companies pull back on spending. Meta plans $37bn digital infrastructure investment in 2024 as it anticipates high levels of spending to cater for AI demand. Possible Fed rate cut and the rise of digital currency (bitcoins) may affect Metaverse or virtual reality (Facebook heavily invested in 2022) in a positive way.