Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

According to Indeed’s report on job postings at the end of 2023, software development, IT, mathematics, and finance had the most significant year-over-year decline, ranging from 44.8% to 32.2%. This signals that the automation of white-collar jobs is taking root.

While experts in these fields will always be needed, much of entry-level to mid-tier work is heading for replacement by artificial intelligence (AI) agents. In April 2023, Goldman Sachs forecasted that up to two-thirds of jobs could be somewhat AI-powered. 

And as manual labor shifts to AI, the global AI market size is projected to add up to $4.4 trillion in value, according to McKinsey & Company. Investors now have to decide which AI exposure they prefer in that growth?

On the infrastructural side, Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are vying to establish AI chip dominance. However, on the software services and AI integration side, two Big Tech giants—Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) — are vying for AI supremacy.

Why Microsoft (MSFT)?

The company’s legacy software was enhanced with the launch of Microsoft Copilot. According to 6sense, Microsoft’s Office 365 productivity suite has an estimated 23.58% market share, with Microsoft Excel alone at 10.42%.

More importantly, the company developed Microsoft Graph and Fabric to facilitate training AI models. Graph allows developers to utilize Microsoft services in LLM training while integrating their products into the broader Microsoft ecosystem; fabric is an all-in-one analytics platform for various uses, from business intelligence to data science.

Underlying Microsoft’s ecosystem is its take on cloud computing – Azure. Specifically, Azure OpenAI seamlessly facilitates the integration of ChatGPT 3.5 and later versions via plugins. They range from generative images through Bing to Azure SQL and Microsoft Translator.

Azure’s market share in cloud computing has steadily grown over the years. Synergy Research Group estimated that three companies—Amazon (AWS), Microsoft (Azure), and Alphabet (Google Cloud )—shared 66% of the global cloud in Q3 2023: Azure, AWS, and Microsoft (Azure). However, as Azure is closing with AWS at 23% vs. 32% market share, respectively, Google Cloud is in distant third place at 11%.

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Why Alphabet (GOOGL)?

Google’s mainstream entry into the AI model space with Gemini became a big flop. The company revealed that it prioritizes ideological conditioning of its AI service over the user experience and accuracy. This was not surprising, however, as Google workers had previously described Bard (rebranded Gemini) as “worse than useless” and a “pathological liar.”

But if this was known, and Gemini was rolled out anyway, it indicates to investors a clear lack of leadership. Former Google employee Diane Hirsch Theriault criticized  CEO Sundar Pichai as having “lack of visionary leadership” while facilitating an atmosphere of nihilism.

Likewise, that Google “has not launched one single successful executive-driven thing in years”. Nonetheless, the Google ecosystem is expansive, as G Suite holds an estimated 68.66% market share. The generous Google Drive storage space and productivity software comparable to Microsoft’s make a strong base for AI integration.

Now known as Google Workspace and Duet AI (Gmail and Docs), Gemini (Ultra 1.0) is heading for broad ecosystem integration. Yet, it remains to be seen if Google’s present corporate culture and ideological commitments will sabotage this rollout. 

Microsoft and Alphabet’s Latest Earnings

For Q1 2024 earnings in April, Alphabet reported $23.6 billion net income vs. $15 billion in the year-ago quarter, a 57.3% profit boost. For FY24 Q3 in April, Microsoft reported a 20% net income boost at $21.9 billion.

In the cloud arena, Microsoft reported continued Azure gains, with revenue growing by 23% to $35.1 billion year over year. While having a significantly smaller market share, Google Cloud outpaced Azure’s revenue growth at $9.5 billion vs. $7.4 billion in a year-ago quarter, representing a 28% increase. 

The bottom line is that Microsoft and Alphabet will likely establish an AI services duopoly, mirroring the dynamic between Nvidia and AMD regarding discrete GPU cards. So far, Microsoft has had a head start with fewer embarrassing errors.

What Do Analysts Forecast?

Based on Nasdaq’s forecast aggregation, the average MSFT price target twelve months ahead is $489 vs the current $400 per share. The average GOOGL price target is $191 vs the current $167 per share. In other words, analysts expect Microsoft (MSFT) stock to appreciate by 22% while Alphabet (GOOGL) is expected to appreciate by 14%.

Microsoft’s market cap is significantly larger than Alphabet’s, at nearly $3 trillion vs. $2 trillion, so the market sentiment is clearly in Microsoft’s favor. However, if Google’s leadership undergoes restructuring, this could shift quickly. 

Do you think corporate AI will be degraded in quality and ability for “AI safety”? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

HNI Corporation has set a remarkable precedent in its first quarter performance for 2024, showcasing a robust financial health that outperforms its historical records since 2007. With a net income of $17.7 million and sales of $588.0 million, the company has significantly surpassed its prior-year figures. This growth is attributed to a strategic profit transformation in its Workplace Furnishings segment and the successful integration of Kimball International (KII), which alone added an estimated $0.10 to non-GAAP EPS.

Despite an 8.1 percent decrease in organic revenue, primarily due to a soft housing market, the company’s earnings per share (EPS) increased to $0.37, marking an 825% rise on a GAAP basis and 185% on a non-GAAP basis year-over-year (YoY). The expansion in Workplace Furnishings’ operating margin by 730 basis points GAAP and 720 bps non-GAAP YoY further highlights the effectiveness of HNI’s profit transformation actions.

HNI Beats EPS Expectations by $0.18 in Q1

The first quarter results of HNI Corporation have exceeded the prior year’s performance and surpassed market expectations. Analysts had projected an EPS of $0.19 and revenue of $574.5 million for the quarter. The actual EPS of $0.37 and revenue of $588.0 million indicate a significant outperformance, underscoring HNI’s operational efficiency and strategic prowess. This remarkable achievement comes despite an 8.1 percent organic revenue decline, showcasing the company’s ability to enhance profitability through cost management and operational improvements. The addition of Kimball International has bolstered HNI’s financial standing, contributing to a higher-than-expected EPS.

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Guidance

Looking ahead, HNI Corporation projects a strong earnings growth trajectory for 2024, driven by ongoing profit transformation in Workplace Furnishings and the benefits accruing from KII. For the second quarter of 2024, the company anticipates a solid increase in non-GAAP EPS year-over-year, supported by the momentum from Workplace Furnishings profit transformation initiatives and accretion from KII. Although the demand environment presents challenges, with expected slight declines in Workplace Furnishings organic segment revenue and low-single-digit rate declines in Residential Building Products revenue, HNI is poised for growth.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

onsemi (NASDAQ: ON), a leading semiconductor solutions provider, announced its first-quarter results for 2024, showcasing significant achievements and financial growth. The company reported a revenue of $1,862.7 million, with both GAAP and non-GAAP gross margins standing at 45.8% and 45.9%, respectively. Furthermore, the operating margins were impressive, with GAAP and non-GAAP figures at 28.2% and 29.0%, respectively. The diluted earnings per share (EPS) were also notable, with GAAP and non-GAAP EPS at $1.04 and $1.08, respectively. This performance underscores onsemi’s successful strategic adjustments and focus on long-term growth amidst challenging market conditions.

Hassane El-Khoury, the president and CEO of onsemi, highlighted the company’s ability to maintain its gross margin through structural business changes over the past three years. He emphasized the importance of power efficiency in meeting global energy demands and expressed confidence in onsemi’s continued market share growth through its leading power and sensing technologies.

ON Beats EPS and Revenue Expectations with $1.08 EPS and $1.86 Billion in Revenue

onsemi’s first-quarter results have not only shown resilience but have also exceeded market expectations. Analysts projected an EPS of $1.04 and a revenue of $1.85 billion for the quarter, which onsemi met and surpassed in terms of revenue, reporting $1,862.7 million and an EPS of $1.08. This outperformance is indicative of the company’s robust operational execution and strategic investments in growth areas. The increase in free cash flow, approximately threefold year-over-year, and the return of ~100% of free cash flow to shareholders through stock repurchases within the last twelve months further demonstrate onsemi’s commitment to delivering shareholder value.

The company’s revenue breakdown by business segment shows a year-over-year increase in the Power Solutions Group (PSG) by 2%, despite a sequential decline. However, the Automotive, Industrial, and Multi-Market Group (AMG) and Intelligent Sensing Group (ISG) experienced declines both sequentially and year-over-year, reflecting the ongoing adjustments within the semiconductor industry and specific challenges faced by these segments.

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ON Expects Revenue in Q2 to Be Between $1.68 Billion to $1.78 Billion

Looking ahead, onsemi provided guidance for the second quarter of 2024, projecting revenue between $1,680 million and $1,780 million. The anticipated gross margin ranges from 44.1% to 46.1% on a GAAP basis and 44.2% to 46.2% on a non-GAAP basis. Operating expenses are expected to be between $327 million and $342 million on a GAAP basis, with adjustments for special items leading to a non-GAAP operating expense outlook of $313 million to $328 million. The company also forecasts diluted EPS to be in the range of $0.82 to $0.94 on a GAAP basis and $0.86 to $0.98 on a non-GAAP basis.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

SoFi Technologies, Inc. (NASDAQ: SOFI) has once again demonstrated its robust growth trajectory and financial health in the first quarter of 2024, with remarkable results that exceeded market expectations and set a promising tone for the year ahead. The company’s strategic focus on expanding its financial services and tech platform segments has paid off, contributing significantly to its overall performance and profitability.

SoFi Technologies Reports 37% Jump in Revenue from Previous Years’s Q1

In the first quarter of 2024, SoFi Technologies reported a total GAAP net revenue of $645 million, a 37% increase from the previous year’s $472.2 million. This impressive growth is mainly attributable to the company’s 54% revenue growth in both the Tech Platform and Financial Services segments, which collectively drove a 26% growth in total adjusted net revenue, reaching $581 million. The company achieved its second consecutive quarter of GAAP net income, reporting $88 million, a remarkable turnaround from a loss of $34.4 million in the first quarter of 2023.

The company’s adjusted EBITDA stood at $144 million, representing a 91% year-over-year growth and a 25% margin. The company also reported strengthening its balance sheet, with tangible book value growing by $608 million to end the quarter at $4.1 billion.

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SoFi Technologies Smashes Expectations in Q1 with $0.02 EPS

Compared to the market’s expectations for the quarter, SoFi Technologies has outperformed significantly. Analysts had anticipated an EPS of $0.007 and revenue of $555.09 million. However, the company surpassed these projections comfortably with a reported EPS of $0.02 (diluted basis) and revenue of $645 million.

Looking ahead, SoFi Technologies has raised its guidance for FY 2024, reflecting the company’s confidence in its growth trajectory and the underlying strength of its business model. The company now expects to deliver adjusted net revenue of $2.39 to $2.43 billion, up from the previously implied guidance range. This updated guidance assumes that Lending revenue will be 92% to 95% of 2023 levels, with the Tech Platform expected to grow approximately 20% year over year and Financial Services revenue anticipated to grow more than 75% year over year.

SoFi Technologies Ups Guidance for FY 2024

Furthermore, the company has raised its expected adjusted EBITDA to $590 to $600 million, above the prior guidance of $580 to $590 million. This adjustment signals SoFi’s operational efficiency and its ability to scale profitably. The company also expects a full-year GAAP net income of $165 to $175 million, significantly higher than the previous guidance, reflecting the positive impact of its strategic initiatives and operational improvements.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

In today’s premarket trading, three stocks are making significant moves driven by notable developments. Tesla (NASDAQ: TSLA) shares are surging following CEO Elon Musk’s successful visit to China, where he secured a critical mapping deal with Baidu for the company’s Full Self-Driving software.

Paramount Global (NASDAQ: PARA) stock is rising amid concessions offered by the Redstone family and Larry Ellison to ease investor unrest, alongside speculation about a potential CEO change and ongoing sale discussions.

Meanwhile, Southwest Airlines (NYSE: LUV) shares are declining due to concerns over a potential overhaul of its boarding and seating processes and a downgrade from Jefferies citing financial stability and strategic direction issues.

Tesla Stock Soars on Musk’s Successful China Visit, Baidu Deal

Tesla Inc. shares surged 7.55% to $181 in premarket trading Monday, driven by CEO Elon Musk’s fruitful visit to China. During the trip, Musk secured a critical mapping deal with Chinese tech giant Baidu for Tesla’s Full Self-Driving (FSD) software, paving the way for its rollout in the world’s largest electric vehicle market.

The agreement with Baidu is expected to significantly enhance Tesla’s capabilities in China, potentially boosting future sales and profitability. Investors reacted positively to this strategic advancement, viewing it as a key regulatory win for the electric vehicle maker in a crucial market.

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Paramount Global Shares Rise on Concessions, CEO Change Speculation

Paramount Global stock rose by 4.7% in premarket trading following the news that the Redstone family and Larry Ellison are open to offering concessions to calm investor unrest. The move comes amid speculation about a potential change in leadership and the company, with rumors circulating about the possible ousting of CEO Bob Bakish and ongoing discussions regarding a potential sale of the company.

These developments have increased optimism among investors, who believe that the concessions and potential leadership change could lead to a more favorable outcome for shareholders. The possibility of a strategic restructuring or successful sale has further contributed to the positive sentiment surrounding the stock.

Southwest Airlines Stock Drops on Boarding Overhaul Concerns, Downgrade

Southwest Airlines shares declined 2.48% to $26.36 in premarket trading after news emerged of potential major changes to its boarding and seating processes. The airline is considering a significant overhaul of these practices, raising concerns among investors about the practical and financial implications of such changes.

Additionally, Jefferies downgraded Southwest Airlines’ stock from Hold to Underperform, citing concerns over the company’s financial stability and strategic direction. The downgrade has further dampened investor sentiment, as it highlights the potential challenges the airline may face in maintaining operational efficiency and profitability.

The proposed boarding and seating overhaul and the downgrade have combined to increase skepticism about Southwest Airlines’ ability to maintain its dividend payouts in the face of potential financial distress. As a result, investors are cautiously assessing the airline’s future prospects, leading to a decline in its stock price.

How will the rest of 2024 play out for Tesla and Paramount? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

In Q1 2024, the US crossed the historic milestone of paying over $1 trillion on interest payments. As a consequence of an unprecedented $5 trillion money supply boost since 2020, the US experienced an equally rapid inflation rise not seen since the 1980s.

Likewise, the Federal Reserve then engaged in the fastest rate hike since the 1980s, causing it to pay more in interest. Concurrently, by October 2023, the USG had already tallied a $1.7 trillion budget deficit, making it 6.3% of gross domestic product (GDP).

Since inflation appears more resilient than expected, Friday’s core Personal Consumption Expenditures (PCE) index rose to an annual 2.8% in March (vs 2.6% expected), leaving the Federal Reserve in a bind. The 10-year/2-year Treasury spread has been steadily rising. 

Interlinked, the Fed is less likely to cut interest rates despite historic interest payments and inflation if there is a sustained lower demand for Treasuries. The central bank then has to balance huge budgetary deficits and inflation reignite. 

“Huge fiscal spending, the trillions needed each year for the green economy, the remilitarization of the world and the restructuring of global trade—all are inflationary,”

JPMorgan Chase CEO, Jamie Dimon, in April’s letter to the bank’s annual shareholders.

For investors, this means restructuring portfolios for assets that benefit from inflationary pressures. Here is what to look for across three asset category types.

Commodities

As the tampered money supply loses value, manifesting as inflation, tangible assets with intrinsic value appreciate. SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) have been going up, at 12.9% and 13.8% YTD respectively.

Bitcoin (BTC) is even more scarce than precious metals. Although Bitcoin is a digital asset, it is physically grounded in an extensive computing network of energy and hardware assets. Further, over 93% of Bitcoin’s firmly fixed supply of 21 million BTC has already been mined.

After the completed fourth halving, Bitcoin’s inflation rate is now at 0.85%, significantly lower than the Fed’s ideal target for USD at 2%. Year-to-date, Bitcoin (BTC) has drastically outpaced both gold and silver at 51% returns.

Agriculture products and farmland assets perform well in the middle ground between precious metals and Bitcoin. The Invesco DB Agriculture Fund (DBA) yielded 25.3% returns year-to-date.

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Real Estate

Just as intrinsic agricultural products rise in USD-denominated value, so does the construction material for housing. Having limited supply amid mass immigration generates higher rents, which landlords can tweak according to higher inflation.

Real estate investment trusts (REITs) with shorter-term leases of 1-2 years perform particularly well as they can keep up with the inflation rate. For investors, this combines well with regulatory requirements for REITs to pay 90% of taxable profits to shareholders as dividends. 

That’s because they don’t have to pay corporate income tax. Case in point, Arbor Realty Trust (ABR) gives out a 13.72% dividend yield at $1.72 annual payout per share. With the exposure of 1,000 ABR shares for $12.84 per share (appreciated 23% over one year), investors would receive a $1,720 annual payout at very low risk.

Lastly, because REITs can diversify their real estate portfolio, they resist market swings and the Fed’s monetary policies regardless of direction.

Treasury Inflation-Protected Securities (TIPS)

TIPS can adjust their interest payments and principal according to the consumer price index (CPI) moves for investors looking for the absolute safest inflation hedge available. Although this guarantees the bond’s original value at maturity, TIPS doesn’t gain value as expected from stocks.

Moreover, if newly issued TIPS have better yields aligning with rising interest rates, older TIPS will underperform against traditional long-term Treasuries. For instance, iShares 0-5 Year TIPS Bond ETF (STIP) returned 0.87% year-to-date, while giving an annual dividend payout of $1 per share, at 1% dividend yield.

By the same token, TIPS’ minimized wealth-building potential is the cost of its protected hedge against inflation. In the era of rapid money erosion, commodities and infrastructure stocks for AI generative content, such as Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD), are better-balanced hedges. 

Which asset has the best chance of surviving the macroeconomic pain? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Intel’s (NASDAQ: INTC) stock plummeted in pre-market trading Friday, a stark reaction to its second-quarter revenue forecast that failed to meet analysts’ expectations. The semiconductor giant’s Q2 revenue projection of $12.5 billion to $13.5 billion fell short of Wall Street’s anticipated $13.57 billion, underscoring the significance of the miss.

Intel Faces Challenge as Enterprise Spending Shifts Towards AI

The disappointing forecast underscores Intel’s uphill battle as enterprise spending gravitates toward artificial intelligence (AI) technology. This shift significantly affects the demand for traditional data centers and PC chips, a market where Intel has been a dominant player. However, the emergence of competitors like Nvidia (NASDAQ: NVDA), who have taken the lead in producing advanced AI chips and components, has left Intel grappling to maintain its position.

Despite Intel’s efforts to address these issues, analysts still need to be convinced about the company’s ability to turn things around quickly. Bernstein analysts bluntly stated that “the company is profoundly broken,” and significant improvements are expected to take years. In response to these challenges, Intel has announced plans for a $100 billion investment across four U.S. states to build and expand factories and has unveiled a new AI chip to compete more effectively in the market.

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Intel Stock Brief

At market close Thursday, Intel’s stock price stood at $35.11, up 1.77%. However, following the announcement of the Q2 forecast, the stock slumped more than 7% in pre-market trading at the time of writing. This decline compounds the company’s struggles, with its year-to-date return down by ~29.92%, although it has seen a 20.03% increase over the past year.

As Intel navigates this challenging period, investors and industry experts will closely watch the company’s ability to address its challenges and adapt to the rapidly evolving AI landscape.

The success of Intel’s strategic investments, including the $100 billion plan to build and expand factories and its capacity to innovate, will be pivotal in determining whether the company can regain its footing and maintain its position in the fiercely competitive semiconductor industry.

Do you think Intel has the potential for a turnaround this year? The stock is down 29% year-to-date. Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Exxon Mobil Corporation (NYSE: XOM) announced its first-quarter 2024 earnings, showcasing strong financial and operational performance despite facing industry headwinds. The company reported earnings of $8.2 billion and cash flow from operating activities of $14.7 billion. This performance was bolstered by significant achievements, including a quarterly gross production of over 600,000 oil-equivalent barrels per day in Guyana and the final investment decision on the sixth major development in the region.

Additionally, ExxonMobil saw growth in performance chemical sales volumes and delivered record first-quarter refining throughput while maintaining excellent turnaround performance. The company also reported a reduction in operated methane emissions intensity by more than 60% since 2016, highlighting its commitment to environmental stewardship. These results underscore ExxonMobil’s strategic focus on execution excellence, creating substantial value for society and its shareholders.

ExxonMobil’s Q1 EPS Missed, Revenue Beat

Comparing the current performance against expectations, ExxonMobil’s first-quarter earnings per share (EPS) of $2.06 fell short of the anticipated $2.21. However, the company’s revenue for the quarter stood at $80.41 billion, slightly above the expected $78.31 billion. This discrepancy between earnings and revenue performance can be attributed to the dynamic nature of the industry’s refining margins and natural gas prices, which have normalized within the ten-year historical range after last year’s highs. Despite these challenges, ExxonMobil’s strategic investments in high-value, high-growth markets and its focus on cost reduction and operational efficiency have effectively enabled it to navigate the volatile market conditions.

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ExxonMobil Aims to Spend $23B to $25B in Capital and Exploration Expenditures

Looking ahead, ExxonMobil provided guidance that continues to reflect the company’s strategic vision and operational excellence. The corporation plans to maintain capital and exploration expenditures within the range of $23 billion to $25 billion for the full year. This disciplined approach to investment underscores ExxonMobil’s commitment to growing its earnings power through strategic asset investments and cost management. Moreover, the company’s ongoing technological investments aim to extend its reach into new markets, such as advanced recycling and carbon capture, positioning ExxonMobil to capture increased value from its core competitive advantages.The guidance also focuses on delivering cumulative structural cost savings totaling $15 billion by the end of 2027, further demonstrating ExxonMobil’s commitment to operational efficiency and shareholder value creation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Chevron Corporation (NYSE: CVX) reported its first-quarter earnings for 2024, showcasing a robust performance despite a slight dip in earnings compared to the previous year. The company announced earnings of $5.5 billion, or $2.97 per share (diluted), a decrease from the $6.6 billion, or $3.46 per share, reported in the first quarter of 2023. Adjusted earnings were slightly lower at $5.4 billion, or $2.93 per share, compared to $6.7 billion, or $3.55 per share in the same period last year.

Despite the decrease, Chevron’s worldwide production increased significantly by 12 percent from a year ago, with a notable uptick in U.S. production, which surged 35 percent due to strategic acquisitions and strong execution in key basins.

Current Quarter’s Performance

The company’s financial health remained strong, with cash flow from operations (CFFO) amounting to $6.8 billion for the quarter, albeit lower than the $7.2 billion reported in the first quarter of 2023. This reduction in CFFO was primarily attributed to lower earnings and increased spending on expansion and asset retirements, partially offset by lower working capital. Chevron continued its shareholder-friendly initiatives, returning $6 billion in cash to its shareholders through dividends and share repurchases, marking the eighth consecutive quarter where cash returns exceeded $5 billion. Additionally, Chevron’s capital employed in the first quarter of 2024 yielded a return on capital employed (ROCE) of over 12 percent, showcasing the efficiency and profitability of its operations.

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Chevron Beats Revenue Expectations, Slight Miss on EPS with $2.93 Adj.

Chevron’s first-quarter performance was closely aligned with market expectations, slightly exceeding the anticipated earnings per share (EPS) of $2.96 ($2.93 adj) and beating the revenue forecast of $47.19 billion. The actual earnings of $2.97 per share on revenues of $48.72 billion demonstrated Chevron’s ability to navigate the complexities of the energy market, maintaining profitability and operational excellence. However, the adjusted EPS of $2.93 fell short of expectations.

The slight discrepancy between expected and actual performance underscores the challenges the energy sector faces, including fluctuating commodity prices and operational hurdles. However, Chevron’s strategic investments, particularly in the U.S., and its focus on key project milestones in Kazakhstan, the East Mediterranean, and the U.S., have bolstered its production capabilities and positioned it for sustained growth.

Chevron Provides Optimistic Guidance for Remainder of 2024

Looking ahead, Chevron has provided optimistic guidance for the remainder of 2024, focusing on continued operational and financial performance improvements. The company’s strategic initiatives, including expanding its carbon capture, hydrogen, and renewable fuels businesses, are expected to drive future growth and enhance Chevron’s portfolio resilience. Furthermore, Chevron’s commitment to returning value to shareholders remains unwavering, with plans to sustain its dividend payouts and share repurchase programs. The successful startup of the Wellhead Pressure Management Project (WPMP) and other key milestones reflect Chevron’s ability to execute its strategic priorities, promising a positive outlook for its future performance.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Aon plc (AON), a leading global professional services firm, reported a solid start to the year with its first-quarter 2024 results. The company announced a 5% increase in total revenue, reaching $4.1 billion, and a notable 5% organic revenue growth.

However, the operating margin decreased by 210 basis points to 36.0%, reflecting the complex operating environment. Adjusted for certain items, it improved by 100 basis points to 39.7%.

AON Missed Q1 EPS and Revenue Expectations

In Q1, Earnings per share (EPS) rose by 6% to $5.35, with adjusted EPS growing by 9% to $5.66. Despite a 29% decrease in free cash flow to $261 million, the company’s strategic moves, including acquiring NFP for $13.0 billion and a 10% increase in the quarterly cash dividend, signal confidence in its long-term growth trajectory.Compared to expectations, Aon’s performance in the quarter presents a mixed picture. Analysts had projected an EPS of $5.89 and revenue of $4.13 billion for the quarter, indicating that while the company fell short of earnings expectations, it nearly met revenue forecasts.

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Aon Optimistic with Guidance, Anticipates Free Cash Flow Benefits

Aon provided guidance that reflects optimism about its future performance. The company anticipates that the accretion and free cash flow benefits from the NFP acquisition will materialize a year earlier than initially modeled. This earlier-than-expected realization of benefits underscores the strategic fit of NFP within Aon’s portfolio and the company’s capability to integrate acquisitions efficiently. However, despite the current investment phase, Aon’s commitment to returning value to shareholders through share repurchases and dividend increases signals confidence in its cash flow generation and financial health. The guidance also hints at a continued focus on organic growth, margin expansion, and strategic investments to enhance long-term shareholder value.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Alphabet Inc. (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), two of the world’s largest technology companies, have reported strong second-quarter earnings driven by their investments and advancements in artificial intelligence (AI) and cloud computing.

Both companies surpassed Wall Street expectations, with Alphabet reporting a revenue of $80.54 billion and an adjusted EPS of $1.89, while Microsoft posted a revenue of $61.86 billion and an EPS of $2.94.

The impressive results have led to significant gains in their respective stock prices, with Alphabet’s stock surging by approximately 16% and Microsoft’s stock increasing by 4.04% in premarket trading today at the time of writing.

Alphabet Surpasses Expectations with Strong Q2 Earnings, Driven by AI and Cloud Growth

Alphabet Inc., Google’s parent company, announced its second-quarter earnings results, surpassing Wall Street expectations. The company reported revenue of $80.54 billion, marking a 16% increase from the previous year and beating the expected $78.71 billion. Adjusted earnings per share stood at $1.89, above the estimated $1.51.

Alphabet declared a cash dividend of $0.20 per share to reward shareholders and approved stock repurchases of up to an additional $70 billion. The company emphasized its strong position in the AI market, highlighting the integration of AI tools into Google Search, YouTube, and its Cloud services. Incorporating AI into Google Search is revolutionizing how users interact with the web.

Alphabet’s capital expenditures for the quarter amounted to $12 billion, primarily tied to servers and data centers, signaling the company’s significant ongoing investment in AI capabilities. The Cloud division witnessed impressive growth, with revenue increasing nearly 30% to over $9 billion. The overall strong performance was attributed partly to advancements and integrations in AI technology.

Following the earnings release, Alphabet’s stock price surged by approximately 16%, reflecting strong market approval of the results and the company’s strategies. In premarket trading, the stock price stood at $176.18, showing a substantial increase of +18.23 (+11.54%).

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Microsoft’s Q2 Earnings Soar on the Back of AI and Cloud Computing Growth

Microsoft reported impressive second-quarter earnings, with a revenue of $61.86 billion, representing a 17% increase from the previous year. Earnings per share rose by 20% to $2.94, showcasing the company’s strong financial performance.

The significant revenue growth was primarily driven by the Microsoft Cloud division, which reached $35.1 billion, up 23% from the previous year. This growth was attributed principally to AI innovations and the expansion of cloud computing services. Azure and other cloud services grew by an impressive 31%, while Office Commercial products and cloud services saw a 13% increase.

Microsoft, highlighting its heavy investments in AI, which have contributed significantly to the growth of its cloud computing services. The company has positioned itself as a leader in AI transformation across projects such as the $1.1 billion contract with Coca-Cola for AI and cloud services.

With a nearly $3 trillion market cap, Microsoft remains the world’s largest public company by market value. During the quarter, the company returned $8.4 billion to shareholders through repurchases and dividends, demonstrating its commitment to creating value for investors.

In premarket trading, Microsoft’s stock price stood at $415.15, showing a solid increase of +16.11 (+4.04%). The company’s strong earnings results and strategic focus on AI and cloud computing have instilled confidence in investors, positioning Microsoft for continued growth and success in the rapidly evolving technology landscape.

Do you think AI will continue to dominate the investing narrative for now? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Technology giants Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOG) are set to release their earnings reports for the first quarter of 2024, with investors eagerly awaiting updates on their financial performance and strategic initiatives. As two of the most influential companies in the tech sector, their results are expected to provide valuable insights into the industry’s trajectory and the impact of emerging technologies like artificial intelligence (AI).

Alphabet, Microsoft Set to Report Q1 Results

Alphabet, Google’s parent company, is expected to have focused on stabilizing its digital advertising business, which remains a primary revenue driver. The company’s ad revenues, which span YouTube, Search, and Network ads, are expected to benefit from strong market trends. Additionally, developments on the firm’s AI service Gemini are anticipated to bolster its competitiveness in the AI space after a shaky launch and potentially positively impact ad revenues. Wall Street analysts forecast earnings of $1.51 per share on revenue of $78.57 billion for the quarter, indicating significant year-over-year growth.On the other hand, Microsoft is projected to report earnings of $2.82 per share on revenue of $60.76 billion for the quarter that ended March, reflecting substantial growth compared to the previous year. The company’s heavy investments in AI, including enhancements like Copilot, are expected to drive revenue growth, particularly in its cloud services division. Microsoft’s focus on long-term development and leveraging advances in AI and cloud technology positions the company to maintain its strong market position.Both companies have implemented various cost efficiency measures to boost profitability and expand margins. Alphabet, for instance, has reduced its headcount as part of its efforts to streamline operations and optimize resource allocation. These initiatives are expected to contribute positively to the companies’ bottom lines.

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MSFT and GOOG Dip Before Earnings Release

In terms of stock performance, Microsoft shares have experienced significant appreciation, increasing approximately 15% since the start of the year, driven by strong performance and investor confidence in its strategic direction. Alphabet’s stock has also seen an uptick, with an 11% increase year-to-date, supported by optimism around digital advertising and AI investments. However, at the time of writing, Microsoft is trading down 3.8% at $393.53, while Alphabet is trading down 2.2% at $157.52, as the broader market trends downward following the release of GDP data indicating slower-than-expected growth in the US economy during the first quarter.

Do you think the US economy will rebound or cool down over the rest of the year? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Northrop Grumman Corporation (NYSE: NOC) demonstrated its robust financial health and operational efficiency in the first quarter of 2024. The defense giant reported a 9 percent increase in sales, reaching $10.1 billion, up from $9.3 billion in the same quarter of the previous year. This growth was driven by continued strong demand for its products and services across all sectors, with notable performance in Aeronautics Systems, which saw an 18 percent increase in sales.

Operating income followed suit, with a 13 percent increase attributed to strong performance and cost efficiencies that have improved the operating margin across many of the company’s businesses. Diluted earnings per share saw a 15 percent rise to $6.32, and the company returned $1.5 billion to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value.

Northrop Grumman Beats EPS and Revenue Expectations in Q1

Comparing these results against market expectations, Northrop Grumman has surpassed the anticipated earnings per share (EPS) of $5.78 and revenue of $9.76 billion for the quarter. The actual EPS of $6.32 and revenue of $10.13 billion highlight the company’s ability to exceed analyst predictions and reflect its operational excellence and strategic positioning in the defense sector. This performance is awe-inspiring given the complex global defense spending environment and underscores Northrop Grumman’s strong backlog, which supports its multi-year outlook for free cash flow growth. The company’s focus on productivity and cost efficiency has paid off, improving operating margins across its diverse portfolio.

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Guidance

Looking ahead, Northrop Grumman has reaffirmed its 2024 company-level guidance, signaling confidence in its future performance. This guidance reflects the company’s judgment based on current market conditions, including global macroeconomic, security, and political environments. Northrop Grumman’s forward-looking statements suggest a steady demand for aerospace and defense technology solutions amidst ongoing inflationary pressures and labor and supply chain challenges.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Caterpillar Inc. (NYSE: CAT), a leading manufacturer of construction and mining equipment, announced its first-quarter results for 2024. The results revealed a mixed performance that showcased resilience in a challenging market. Despite a slight drop in sales and revenues, the company achieved a record adjusted profit per share and strong cash flow, underscoring its operational efficiency and robust financial health.

Caterpillar’s Operating Profit Margin Improved in Q1

In the first quarter of 2024, Caterpillar reported sales and revenues of $15.8 billion, marginally down from $15.9 billion in the same period last year. This slight decline was attributed to lower sales volume, primarily in the construction and resource industries, almost entirely offset by favorable price realization and higher ‘Financial Products’ revenues. Notably, the company’s operating profit margin improved significantly to 22.3% from 17.2% in the first quarter of 2023, reflecting a more profitable mix and efficient cost management. Adjusted profit per share reached a record $5.60, up from $4.91 the previous year, demonstrating Caterpillar’s ability to generate higher earnings despite a challenging sales environment.

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Caterpillar Beats Q1 EPS Expectations with $5.6 EPS and $9.1 Billion in Revenue

Caterpillar’s first-quarter performance exceeded analyst expectations with an EPS of $5.6 and missed on revenue of $15.8 billion. Analysts had anticipated an EPS of $5.14 and revenue of $16 billion.

The higher-than-expected profit per share can be attributed to the company’s strategic focus on cost reduction, operational efficiency, and favorable price realization, which helped mitigate the impact of lower sales volume.

Caterpillar Committed to Shareholder Value, Did Not Provide Specific Guidance for Upcoming Quarters

Looking ahead, Caterpillar’s management remains optimistic about the company’s long-term growth prospects. The company continues to execute its strategy for long-term profitable growth, as evidenced by the record adjusted profit per share and strong cash flow in the first quarter. Moreover, Caterpillar’s robust balance sheet and strong cash flow generation capacity have enabled it to return a record $5.1 billion to shareholders through share repurchases and dividends, underscoring its commitment to delivering shareholder value. While specific guidance for the upcoming quarters was not provided, the company’s performance in the first quarter, coupled with its strategic initiatives, positions it well to navigate future challenges and capitalize on market opportunities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Honeywell (NASDAQ: HON) reported a robust first-quarter performance, surpassing the company’s own earnings guidance and setting a positive tone for the year. With sales reaching $9.1 billion, Honeywell saw a 3% increase in both reported and organic sales, showcasing the company’s ability to maintain growth momentum. The operating margin experienced a significant uptick of 130 basis points, reaching 20.4%, while the segment margin improved by 20 basis points to 22.2%.

This margin expansion was primarily driven by the Aerospace Technologies sector, which saw an 18% increase in organic sales. Earnings per share (EPS) for the quarter stood at $2.23, marking an 8% year-over-year increase, with adjusted EPS at $2.25, surpassing the high end of previous guidance. The company also highlighted a 6% year-over-year increase in backlog to $32.0 billion, thanks to $10.2 billion in orders, showcasing a strong and growing demand for Honeywell’s diversified product portfolio.

Honeywell Reports $0.25 Adjusted EPS, $9.1 B in Revenue for Q1, Above Expectations

The performance of Honeywell in the first quarter of 2024 not only met but exceeded expectations set by analysts and the company itself. Before the earnings release, the market had anticipated an EPS of $2.17 and revenue projections of $9.03 billion. Honeywell’s actual results outpaced these projections, with an EPS of $2.23 and revenue of $9.1 billion. This outperformance is a testament to the company’s operational efficiency and ability to capitalize on growth opportunities across its diverse business segments. Particularly noteworthy was the performance in the Aerospace Technologies and Energy and Sustainability Solutions segments, which saw significant organic sales growth of 18% and 5%, respectively. These results reflect Honeywell’s strategic positioning in high-growth areas and its ability to navigate the challenges of a dynamic global market environment.

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Honeywell Expects Full Year 2024 Sales in the range of $38.1 Billion to $38.9 Billion

Looking ahead, Honeywell has provided guidance that underscores its confidence in its operational strategy and market positioning. For the full year of 2024, Honeywell expects sales to be in the range of $38.1 billion to $38.9 billion, with organic sales growth projected between 4% to 6%. The company anticipates segment margin expansion of 30 to 60 basis points, positioning the adjusted EPS to be in the range of $9.80 to $10.10, which would represent a 7% to 10% increase. Operating cash flow is expected to be between $6.7 billion to $7.1 billion, with free cash flow projected in the range of $5.6 billion to $6.0 billion. This guidance reflects Honeywell’s ongoing commitment to delivering shareholder value through sustained growth, margin expansion, and disciplined capital allocation. The company’s strategic investments, such as the acquisition of Civitanavi Systems, are expected to further strengthen its core offerings and expand its market presence, particularly in Europe.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Shares of Meta Platforms Inc. (NASDAQ: META) and International Business Machines Corp. (NYSE: IBM) experienced significant declines in pre-market trading Thursday following their respective earnings reports and strategic announcements. Meta reported a 27% year-over-year increase in revenue for the first quarter, totaling $36.46 billion, while IBM announced its acquisition of HashiCorp for $6.4 billion, valued at $35 per share in cash.

IBM and META Shares Slide in Premarket Trading

IBM’s stock price dropped 8.35% to $168.73 in early trading after it unveiled its $6.4 billion acquisition of HashiCorp. This strategic move, valued at $35 per share in cash, is expected to fortify IBM’s position in the hybrid cloud market by harnessing HashiCorp’s infrastructure automation expertise. IBM is optimistic that this transaction will drive synergies across its key growth areas, including Red Hat, IT automation, and consulting.

Despite the strategic fit, investors appeared skeptical about the acquisition’s financial impact. IBM expects the deal to accrue to its adjusted EBITDA within the first full year after closing and to contribute positively to free cash flow in the second year.

Meanwhile, Meta’s shares tumbled 13.21% to $428.33 in pre-market trading despite reporting a 27% year-over-year increase in revenue for the first quarter, totaling $36.46 billion. The social media giant’s strong earnings were overshadowed by concerns over its projected spending on artificial intelligence (AI) technologies.

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Meta’s Guidance for AI Expenditures Higher than Expected for 2024

Meta’s guidance for 2024 AI expenditures, ranging from $35 billion to $40 billion, marked a substantial increase from its previous estimate of $30 billion to $37 billion. This revision led to a sharp decline in the company’s stock price as investors weighed the potential benefits of increased AI investments against the impact on profitability and cash flow in the near term.

Do you think Meta will continue its upward momentum YTD, or will the stock enter correction? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Despite overboughtness concerns, Nvidia (NASDAQ: NVDA) has been rising this year between dips. While down 11% over the last 30 days, NVDA shares have given nearly 70% returns year-to-date, greatly outpacing the broad market benchmark S&P 500 (SPX), which is at 7% for the same period.

The fact that NVDA fluctuates with multi-billion swings but then recovers points to one theme. Investors see AI infrastructure as a new gold rush, with Nvidia as the agile supplier and AMD (NASDAQ: AMD) encroaching slowly with the MI300 series of AI chips. 

Just as Bitcoin took the spotlight amid thousands of cryptocurrencies, Nvidia became an AI stock. However, outside that focus lie opportunities in smaller-cap AI stocks, just as many altcoins outperformed Bitcoin.

Here are three promising companies contributing to the ongoing AI race.

Innodata Inc. (NASDAQ: INOD)

At the present price level of $6.46, INOD stock is close to its 52-week low point of $5.46 per share. After February’s peak at $11.63, INOD shares are down 19% year-to-date, suggesting a steep discount.

Innodata provides an important AI service. As large language model (LLM) training became commonplace, the New Jersey-based company provided the groundwork—sourcing, collecting, and creating high-quality data pools for AI models to use for generative output.

This foundational prep-work for generative AI includes image, audio, and video data pools. Thus, Innodata’s customers can rely on robust AI agents to automate various tasks. 

Compared to a net loss of $11.9 million in 2022, Innodata reported a $908k net loss in 2023. At the same time, the company only slightly increased total liabilities from $29.9 million to $34.4 million. Overall, Innodata increased revenue from $79 million in 2022 to $87 million in 2023.

Given its penny stock status, investors should consider INOD as volatile, having rallied again 4.3% over the week. 

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SoundHound AI, Inc. (NASDAQ: SOUN)

From the early April coverage, SOUN shares were priced at $5.22, dipping to the present $4.34 per share. SoundHound’s YTD peak was at $8.91 mid-March, yielding a 103% YTD return to penny stock shareholders. Considering SOUN’s 52-week low is $5.46, the stock now presents another buy on the weakness opportunity.

SoundHound’s fundamentals remain the same for future growth. The Californian company specializes in making human speech recognizable and replicable. Its voice AI platform, Houndify, allows developers to build voice-activated apps. In turn, SoundHound gets a royalty cut. The same platform also generates recurrent subscription revenue for hosted services.

The bottom line is that SoundHound will likely find use in all service sectors as customer relations are automated. Although having reported 80% revenue growth in Q4 2023, or 47% year-over-year for full-year 2023, the AI startup is still non-profitable. 

Nonetheless, SoundHound cut its net loss to $88.9 million from $116.7 million in 2022. In 2025, the company expects to see its first positive (adjusted) EBITDA. If that occurs, investors will likely see multiple gains from the present weak point. Twelve months ahead, Nasdaq’s data suggests an average SOUN price target of $7.15 vs. the current $4.34 per share.

Fastly, Inc. (NASDAQ: FSLY)

After the initial hype in the first half of the year, FSLY shares are down 28% YTD. At $12.64, FSLY stock is close to its 52-week low of $11.61 per share. Based in San Francisco, Fastly occupies a particular niche in the AI market.

In addition to optimizing images and videos, Fastly provides customers with edge cloud services. If cloud-hosted services are closer to end-users, there is less lag in data processing and delivery. As such, Fastly caters to clients of all sizes who need reliable web content delivery.

This is critical for computing-hungry generative AI apps. This subscription-based service also included the increasingly important bot and DDoS attack protection. In April, the company introduced Fastly Bot Management, offering granular tweaking so that “bad traffic” is blocked while “good traffic” is let in.

Fastly delivered full-year 2023 earnings in February, showing 17% year-over-year revenue growth to $506 million. Its net loss was significantly reduced from $190.8 million in 2022 to $133.1 million. For full-year 2024, Fastly expects total revenue’s increase to $580 – $590 million range.

Nasdaq’s data suggests an average FSLY price target of $18.67 vs. the current $12.64. The low estimate is higher than the present range, at $16 per share.

Do you favor AI-based stocks or tokens? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Health insurance giant Humana Inc. (NYSE: HUM) saw its stock price plummet by more than 5% on Wednesday after the company withdrew its financial guidance for the year 2025. The decision to pull the guidance was attributed to uncertainties surrounding federal rate adjustments for Humana’s core Medicare Advantage business, which plays a crucial role in the company’s operations and overall performance.

Humana Beats EPS Expectations for Q1

Despite the setback, Humana beat earnings expectations for the first quarter of 2024, reporting an adjusted earnings per share (EPS) of $7.23, surpassing the FactSet consensus estimate of $6.12. However, the company’s net income for the quarter declined to $1.01 billion from $1.61 billion a year ago, indicating a decrease in profitability compared to the previous year.

Despite earlier warnings that higher medical costs could negatively impact future results, Humana has successfully kept its medical costs in line with projections. The company’s ability to manage these costs effectively has been a positive factor amidst the uncertainty surrounding the Medicare Advantage business.

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Humana Stock Down 36%+ Over the Past Year

Looking ahead, Humana remains optimistic about the long-term performance of its Medicare business but has cautioned investors about potential challenges and the need for a recovery period to stabilize margins at 3% or higher. The company’s leadership team is actively working on strategies to navigate the evolving healthcare landscape and maintain a strong market position.

At the time of writing, Humana’s stock price stood at $311.28, reflecting the recent 5.09% decline. Over the past year, the company’s stock has underperformed significantly, with a decline of 36.10% compared to a 22.50% increase in the S&P 500. Despite the recent volatility, Humana has a beta of approximately 0.74, indicating lower volatility compared to the broader market, and a Price/Earnings (TTM) ratio of around 16.40, suggesting a relatively reasonable valuation in the context of the healthcare sector.

Do you think the market is reacting appropriately to the news? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Microchip Technology Inc. (NASDAQ: MCHP) is seeing its stock rally in pre-market trading Wednesday, up 3.49% at $89.20, following the announcement of a new integrated actuation power solution for electric aircraft and following the recent acquisition of Neuronix AI Labs. The company closed Tuesday at $86.19, up 3.18%.

Microchip Develops New Power Solution for Electric Aircraft Systems

The new power solution, meticulously designed for electric actuation systems in aircraft, shows Microchip’s commitment to innovation. It includes companion gate driver boards and Hybrid Power Drive (HPD) modules in silicon carbide (SiC) and silicon.

With its consistent footprint across different power outputs (5kVA to 20kVA), the solution offers a simplified integration into various aircraft systems, including flight controls, braking, and landing gear. This plug-and-play power solution bypasses the complex design and development of drive circuitry. It significantly reduces design time, resources, and costs, painting a promising future for Microchip in the aviation industry.

The devices are tested to DO-160 standards, which are environmental conditions and test procedures for airborne equipment. Features include shoot-through detection, short circuit, desaturation protection, Undervoltage Lockout (UVLO), and active miller clamping.

The gate driver boards use Low Voltage Differential Signaling (LVDS) for low electromagnetic interference (EMI) and good noise immunity, improving the reliability and efficiency of the actuation systems. The solution is well-suited for aviation applications and is designed to operate in harsh environments with a temperature range of -55°C to 110°C.

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Microchip Recently Acquired an AI Startup

In addition to the new power solution, Microchip announced the acquisition of Neuronix AI Labs on April 15, 2024. Neuronix specializes in neural network sparsity optimization technology that enhances power efficiency and reduces the size and complexity of calculations needed for AI tasks like image classification, object detection, and semantic segmentation.

Integrating Neuronix’s technology is expected to significantly increase neural network performance efficiency and improve performance per watt in Microchip’s PolarFire FPGAs and SoCs.

The recent acquisition of Neuronix AI Labs is a strategic move that positions Microchip as a leader in power-efficient, AI-enabled edge solutions. This acquisition sets industry standards in a rapidly growing field, demonstrating Microchip’s foresight and adaptability.

Integrating Neuronix’s technology is expected to enable cost-effective, large-scale deployments of AI and ML applications in edge devices, expanding the potential market for Microchip’s products.

Microchip Technology (MHCP) Stock Price Brief

Microchip Technology has demonstrated robust performance in recent years, boasting a market capitalization of $46.58 billion and an enterprise value of $52.02 billion.

The company’s profit margin is impressive at 27.59%, with a return on assets (TTM) of 12.29% and a return on equity (TTM) of 35.19%. Microchip’s stock has consistently outperformed the S&P 500 over five years, delivering a return of 91.10%.

These strong financial indicators, coupled with analysts’ price targets ranging from $77.00 to $106, provide a solid foundation for investors to consider Microchip a potential investment.

Do you see potential in Microchip as a growth stock? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

AT&T Inc. (NYSE: T) has reported its first-quarter results for 2024, showcasing a robust performance powered by its 5G and fiber growth initiatives. The telecommunications giant announced revenues of $30.0 billion and an adjusted EPS of $0.55, exceeding the EPS expectations of $0.5323. Operating income stood at $5.8 billion, with net income at $3.8 billion.

The company also highlighted a significant year-over-year increase in cash from operating activities, which rose by $0.9 billion to $7.5 billion. Capital expenditures were reported at $3.8 billion, leading to a free cash flow of $3.1 billion, showing a remarkable increase of $2.1 billion from the previous year. These figures underscore AT&T’s solid financial health and its ability to generate substantial cash flows, attributing the success to its strategic investments in 5G and fiber broadband services.

AT&T’s Q1 2024 Performance

The company’s performance this quarter has demonstrated strong growth in its core business areas and highlighted the effectiveness of its investment-led strategy. AT&T reported 349,000 postpaid phone net additions and a record-low first-quarter postpaid phone churn of 0.72%, indicating strong customer retention and acquisition strategies. Additionally, the company saw a significant increase in Mobility service revenues, which rose by 3.3% year over year to $16.0 billion, and Consumer broadband revenues, which grew by 7.7% to $2.7 billion. These results reflect AT&T’s continued focus on expanding its 5G and fiber network coverage, which now spans over 27.1 million consumer and business locations.

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AT&T Beats EPS Expectations in Q1, Falls Short on Revenue Slightly

Comparing the current performance against expectations, AT&T has surpassed the forecasted EPS of $0.5323 by reporting an adjusted EPS of $0.55. However, the revenue fell slightly short of the expected $30.53 billion, coming in at $30.0 billion. Despite this minor shortfall in revenue expectations, the company’s overall financial health remains strong, with significant improvements in cash flow and sustained growth in its Mobility and broadband services. The increased profitability and cash flow generation highlight AT&T’s successful execution of its strategic priorities, particularly its investments in 5G and fiber technologies, which continue to drive customer growth and retention.

AT&T Anticipates Adjusted EBITDA Growth in the 3% Range for Full Year 2024

AT&T has reiterated its full-year guidance, expressing confidence in its continued growth trajectory. The company expects wireless service revenue growth in the 3% range and broadband revenue growth of 7%+. Additionally, AT&T anticipates adjusted EBITDA growth in the 3% range and plans to invest $21-$22 billion in capital expenditures to expand further and enhance its network. For free cash flow, the company projects a range of $17-$18 billion, with adjusted EPS expected to be in the $2.15-$2.25 range.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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