Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Хоча відомо, що відновлювані джерела енергії є матеріаломісткими та займають площу, важко перемогти їх самодостатність. Від котлів на біомасі до сонячної та вітрової енергії, вони пропонують шлях до чистого зменшення залежності від електромережі. Крім того, регуляторні ініціативи з нульовою чистою в усіх напрямках розширюють доступ компаній з відновлюваної енергетики до капіталу. 

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Під час нестабільної торгової сесії три основні акції технологічних і виробничих компаній привертають увагу інвесторів через значні коливання цін і варті уваги події. International Business Machines (NYSE: IBM), NVIDIA Corporation (NASDAQ: NVDA) і Packaging Corporation of America (NYSE: PKG) зазнають помітних змін у цінах на акції та прогнозах аналітиків. У цій статті розглядаються останні оновлення та реакція ринку цих компаній, за якими уважно стежать.

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Повідомляється, що компанії Apple (NASDAQ: AAPL) і Meta (NASDAQ: META) обговорюють інтеграцію генеративної моделі штучного інтелекту Meta в нещодавно анонсовану систему штучного інтелекту для iPhone від Apple. Ця потенційна співпраця з’явилася на тлі того, що обидві компанії нарощують свої зусилля в області штучного інтелекту: Apple нещодавно представила свою технологію «Apple Intelligence», а Meta розширює свої пропозиції чат-ботів зі штучним інтелектом.

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Корпорація Nvidia (NASDAQ: NVDA), потужна компанія, що стоїть за технологією мікросхем штучного інтелекту, потрапила в заголовки газет завдяки стрімкому зростанню вартості та нещодавній активності продажу інсайдерів. Компанія ненадовго випередила Microsoft (NASDAQ: MSFT) як найдорожчу у світі, а потім повернулася на друге місце. Тим часом акції Nvidia продемонстрували значне зростання, випереджаючи індекс S&P 500 за різні періоди часу, незважаючи на недавнє зниження.

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Корпорація Intel (NASDAQ: INTC) досягла значних успіхів у виробництві напівпровідників, оголосивши про значний прогрес у своїй технології процесу Intel 3. Цей розвиток призвів до того, що акції компанії продемонстрували позитивну динаміку на сьогоднішній торговій сесії. На момент написання статті акції Intel незначно зросли на 1,89% за день. Проте з початку року акції Intel впали на 34,8%.

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

У четверговій записці для інвесторів стратеги JPMorgan визначили придушені короткі продажі та покриття коротких позицій як один із головних факторів «постійного потоку підтримки» для показників акцій. 

Короткострокові ставки зараз знаходяться на найнижчому рівні за шість років у S&P 500 ETF Trust (SPY) і Invesco QQQ Trust Series 1 (QQQ), найбільших фондових ETF, які відстежують S&P 500 і Nasdaq-100 відповідно.

Ні автор, Тім Фріс, ні цей веб-сайт, The Tokenist, не надають фінансових порад. Перш ніж приймати фінансові рішення, ознайомтеся з нашою політикою веб-сайту.

Три відомі технологічні компанії відчули значні зміни, які вплинули на ціни їхніх акцій у день змішаних ринкових показників. Аналітики поставили Palo Alto Networks (NASDAQ: PANW) нову цільову ціну, FactSet (NYSE: FDS) повідомила про високі прибутки та підвищила прогнози, а Texas Instruments (NASDAQ: TXN) оголосила про стратегічну співпрацю в секторі електромобілів.

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

In a market increasingly driven by artificial intelligence (AI) developments, three tech stocks are capturing investor attention today: Accenture (NYSE: ACN), Advanced Micro Devices (NASDAQ: AMD), and Super Micro Computer (NASDAQ: SMCI). Each company has reported significant AI-related progress, driving stock price movements and analyst interest.

Accenture (ACN) Surges on AI-Fueled Hype

Despite missing analyst expectations for its fiscal third-quarter results, Accenture’s stock surged in pre-market trading. The company reported revenue of $16.5 billion, a 1% decrease in U.S. dollars but a 1.4% increase in local currency. While GAAP EPS of $3.04 fell short of the expected $3.17, investors focused on Accenture’s strong AI performance. The company booked over $900 million in new generative AI business in Q3, contributing to a total of $2 billion in AI-related bookings for the fiscal year to date. Accenture raised its full-year fiscal 2024 revenue growth guidance to 1.5%-2.5% in local currency, further boosting investor confidence.

Join our Telegram group and never miss a breaking story.

Advanced Micro Devices (AMD) Selected as “Tp Pick” by Piper Sandler

AMD shares gained momentum after Piper Sandler analyst Harsh Kumar elevated the stock to “top pick” status. Despite being down 14% over the past three months, AMD’s outlook in the AI space appears promising. The company’s AI accelerator lineup, particularly the MI series, is expected to perform well as supply constraints ease in the year’s second half. AMD reported having over 100 customers in the AI accelerator space, with its MI300 product expected to generate more than $4 billion in revenue this year. The company’s recent announcement of an AI-based smart parking solution for Sun Singapore further highlights its growing presence in the AI market.

Super Micro Computer (SMCI) Gains After xAI News

SMCI shares jumped after Elon Musk revealed the company as a supplier for his AI startup xAI’s supercomputer project. The news underscores SMCI’s growing role in providing hardware for cutting-edge AI applications. Musk’s xAI is developing a $500 million “Dojo” supercomputer in Buffalo, New York, and plans another “super dense, water-cooled supercomputer cluster” in Austin, Texas. These projects aim to advance computer vision and large language models for robots and autonomous vehicles. SMCI’s stock has significantly outperformed the S&P 500 year-to-date, reflecting strong investor confidence in the company’s position in the rapidly expanding AI hardware market.

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

The post Stocks to Watch Today: Accenture, AMD, and SMCI appeared first on Tokenist.

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

The Kroger Co. (NYSE: KR) reported its first-quarter 2024 results, showcasing a mixed performance. Total company sales for the quarter reached $45.3 billion, a slight increase from $45.2 billion in the same period last year. Identical sales, excluding fuel, rose by 0.5%, illustrating modest growth in core business areas. The company also reported an operating profit of $1,294 million, down from $1,470 million in the first quarter of 2023. Earnings per share (EPS) stood at $1.29, slightly lower than the $1.32 reported in the previous year.

Kroger’s digital sales grew by more than 8%, with delivery and pickup services combining for double-digit growth. The company also noted an increase in total households, loyal households, and customer visits, indicating a solid customer base. However, the FIFO gross margin rate decreased by 7 basis points, primarily due to lower pharmacy margins and increased price investments, partially offset by a favorable product mix reflecting Our Brands’ margin performance.

The company’s LIFO charge for the quarter was $41 million, a decrease from $99 million in the same period last year. This reduction was attributed to lower inflation expectations for the current year. Despite these challenges, Kroger’s commitment to providing exceptional customer value and investing in associates has helped maintain a stable performance.

Kroger’s $1.43 Adjusted EPS Beats Wall Street Estimates

Kroger’s first-quarter performance fell short of Wall Street expectations. Analysts had anticipated an EPS of $1.34, but the company reported an EPS of $1.29. Despite this, Kroger’s adjusted EPS, which excludes certain items, was $1.43, surpassing the expected $1.34. This adjusted figure indicates that the company’s core operations performed better than the headline numbers suggest.

Revenue expectations for the quarter were set at $44.93 billion, and Kroger managed to exceed this with actual revenues of $45.3 billion. This slight outperformance in revenue indicates that, despite various headwinds, the company’s sales strategies are effective. The increase in digital sales and customer visits further supports this positive trend.

However, the operating profit declined, with the first quarter of 2024 reporting $1,294 million compared to $1,470 million in the first quarter of 2023. This drop in operating profit is a concern, reflecting increased operating expenses and investments in associate wages and incentive plans. The OG&A rate increased by 22 basis points, highlighting the cost pressures the company is facing.

Join our Telegram group and never miss a breaking story.

Kroger Reaffirms Full-Year 2024 Guidance, Expects Net Earnings per Diluted Share Between $4.30 and $4.50

Kroger reaffirmed its full-year 2024 guidance, projecting identical sales growth, excluding fuel, between 0.25% and 1.75%. The company expects adjusted FIFO operating profit to range between $4.6 billion and $4.8 billion. Adjusted net earnings per diluted share are forecasted to be between $4.30 and $4.50. These projections indicate cautious optimism, with the company expecting steady growth despite economic uncertainties.

The company also anticipates generating adjusted free cash flow of $2.5 billion to $2.7 billion and capital expenditures of $3.4 billion to $3.6 billion. These figures suggest a strong commitment to reinvesting in the business to drive long-term growth. The adjusted effective tax rate is expected to be around 23%, reflecting typical tax adjustments.

Kroger’s capital allocation strategy focuses on generating strong free cash flow and maintaining its investment-grade debt rating. The company has paused its share repurchase program to prioritize de-leveraging following the proposed merger with Albertsons.

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

The post Kroger Co. Q1 2024 Results Beat Expectations with $1.43 Adjusted EPS appeared first on Tokenist.

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

Accenture (NYSE: ACN) reported mixed results for its fiscal third quarter, falling short of analyst expectations on both revenue and earnings per share. However, the company’s stock surged in pre-market trading as investors focused on Accenture’s raised guidance driven by strong demand for its artificial intelligence (AI) services.

Accenture Misses Q3 Expectations

For the quarter ended May 31, 2024, Accenture posted revenues of $16.5 billion, representing a 1% decrease in U.S. dollars but a 1.4% increase in local currency compared to the same period last year. The company’s consulting revenues stood at $8.5 billion, while managed services revenues reached $8.0 billion. Despite the slight revenue miss, Accenture’s GAAP operating margin improved to 16.0% from 14.2% in the prior year.

On the earnings front, Accenture reported GAAP earnings per share (EPS) of $3.04, a 3% decrease from $3.15 in the previous year. Adjusted EPS also declined 2% to $3.13 from $3.19. The company’s actual EPS of $3.04 fell short of analyst expectations of $3.17 by $0.13. While revenue of $16.5 billion slightly missed the expected $16.6 billion, it remained within Accenture’s adjusted guidance range. The company’s new bookings were a bright spot, reaching $21.1 billion, a 22% increase in U.S. dollars and a 26% increase in local currency.

Join our Telegram group and never miss a breaking story.

Accenture Ups Guidance Based on AI Business

Looking ahead, Accenture raised its full-year fiscal 2024 revenue growth guidance to 1.5%-2.5% in local currency, narrowing the previous range of 1-3%. For the fourth quarter, the company anticipates revenues between $16.05 billion and $16.65 billion, translating to a 2-6% growth in local currency.

The upbeat guidance is largely attributed to Accenture’s strong performance in its AI-related business. The company reported over $900 million in new bookings tied to generative AI in the third quarter alone, contributing to a total of $2 billion in AI-related bookings for the fiscal year-to-date. Accenture’s significant investments in AI are paying off, as the growing adoption of these technologies helps offset slower enterprise IT spending. Generative AI solutions enable Accenture’s clients to enhance productivity and reduce costs.

ACN Stock Gains in Premarket Trading Session on AI-Fueled Guidance

As of the June 18, 2024 close, Accenture’s stock price stood at $285.35, down $0.18 or 0.06%. However, the stock surged in pre-market trading, reaching $304.02, a gain of $18.67 or 6.54%, as investors reacted positively to the company’s AI-driven outlook. Accenture’s market capitalization currently stands at $179.408 billion, with a beta of 0.92 and a trailing twelve-month (TTM) P/E ratio of 25.87. The company’s TTM EPS is $11.04, and it offers a forward dividend yield of 0.51%.

Over the past year, Accenture’s stock has underperformed the broader market, with a 1-year return of -9.33% compared to the S&P 500’s gain of 24.43%. The stock’s 3-year and 5-year returns also lag the benchmark index, at 4.57% and 66.30%, respectively, versus the S&P 500’s returns of 29.97% and 89.88%. Year-to-date, Accenture’s stock is down 18.07%, while the S&P 500 has gained 15.04%.

Do you think the generative AI hype is worth its weight? Let us know in the comments below.

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

The post Accenture Misses Q3 Forecasts but Stock Gains on AI-Fueled Guidance appeared first on Tokenist.

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

Jabil Inc. (NYSE: JBL) reported its third-quarter financial results for fiscal year 2024, showcasing a mix of achievements and challenges. The company posted a net revenue of $6.8 billion, which exceeded expectations and highlighted its resilience amidst a significant transformation. This quarter, Jabil experienced a U.S. GAAP operating income of $261 million and a U.S. GAAP diluted earnings per share (EPS) of $1.06. On a non-GAAP basis, core operating income was $350 million, and core diluted EPS stood at $1.89.

CEO Mike Dastoor emphasized Jabil’s strategic moves, including divesting its Mobility business and capturing growth in the AI data center space. Despite encountering softness in multiple end markets, the company remains on track to achieve its fiscal year 2024 targets of 5.6% core margins and $8.40 of core diluted EPS. Additionally, Jabil generated over $1 billion in adjusted free cash flow and committed to repurchasing $2.5 billion of its shares.

Jabil’s performance this quarter underscores its ability to navigate complex market dynamics while focusing on long-term growth opportunities. The company is well-positioned to benefit from trends in areas such as data center power and cooling, electric and hybrid vehicles, healthcare solutions, semiconductor equipment, and automated warehousing.

Jabil Beats EPS and Revenue Expectations in Q3

The company delivered notable results when comparing Jabil’s third-quarter performance against market expectations. Analysts anticipated an EPS of $1.85 and revenue of $6.53 billion. Jabil surpassed these projections with an actual core diluted EPS of $1.89 and revenue of $6.8 billion. This outperformance demonstrates Jabil’s robust operational execution and strategic foresight.

The company’s U.S. GAAP diluted EPS of $1.06 was below the anticipated core EPS, reflecting adjustments for restructuring, severance, and related charges. However, the core metrics excluding these adjustments provide a clearer picture of Jabil’s ongoing operational strength. Although slightly lower than the previous quarter, the core operating income of $350 million aligns with the company’s strategic initiatives and market conditions.

Jabil’s ability to exceed revenue expectations despite the challenges in certain end markets highlights its diversified portfolio and strategic agility. The company’s focus on high-growth areas such as AI data centers and proactive divestment strategy has positioned it well to navigate market fluctuations and capitalize on emerging opportunities.

Join our Telegram group and never miss a breaking story.

Guidance for the Next Quarter

Looking ahead to the fourth quarter of fiscal year 2024, Jabil has provided a cautiously optimistic outlook. The company forecasts net revenue from $6.3 billion to $6.9 billion. U.S. GAAP operating income is expected to be between $285 million and $355 million, with U.S. GAAP diluted EPS projected to range from $1.40 to $1.88 per share. On a core basis, Jabil anticipates core operating income between $365 million and $425 million, and core diluted EPS between $2.03 and $2.43.

This guidance reflects Jabil’s confidence in its strategic direction and operational capabilities. The company’s focus on high-growth sectors and its commitment to operational efficiency are expected to drive continued performance improvements. Jabil’s proactive measures, including share repurchases and strategic divestments, are aimed at enhancing shareholder value and positioning the company for sustainable growth.

Jabil’s fourth-quarter outlook underscores its strategic agility and resilience in the face of market uncertainties. The company’s ability to provide a robust guidance range, despite the ongoing economic and geopolitical challenges, highlights its strong operational foundation and strategic foresight.

Long-Term Strategic Positioning

For the full fiscal year 2024, Jabil has reiterated its commitment to achieving net revenue of $28.5 billion, a core operating margin of 5.6%, and core diluted EPS of $8.40. The company also aims to generate over $1 billion in adjusted free cash flow, emphasizing its focus on financial discipline and shareholder returns.

Jabil’s strategic initiatives, including investments in high-growth areas and operational efficiencies, are designed to drive long-term value creation. The company’s diversified portfolio and global reach provide a strong foundation for navigating market fluctuations and capturing emerging opportunities. Jabil’s proactive approach to managing its capital structure, including share repurchases and strategic divestments, underscores its commitment to enhancing shareholder value.

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

The post Jabil Inc. Surpasses Q3 Revenue Expectations with $6.8 Billion in Net Revenue appeared first on Tokenist.

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

Accenture (NYSE: ACN) reported its financial results for the third quarter of fiscal 2024, ending May 31, 2024, showcasing a mixed performance. The company recorded revenues of $16.5 billion, a slight decrease of 1% in U.S. dollars but an increase of 1.4% in local currency compared to the same period last year. Consulting revenues were $8.5 billion, while managed services revenues reached $8.0 billion. The company’s GAAP operating margin improved to 16.0%, up from 14.2% in the previous year, indicating a positive trend in operational efficiency.

Accenture achieved significant milestones in new bookings, which totaled $21.1 billion, marking a 22% increase in U.S. dollars and a 26% increase in local currency. The company also reported over $900 million in new bookings related to generative AI, contributing to a total of $2 billion in AI-related bookings for the fiscal year to date. Despite these achievements, GAAP earnings per share (EPS) for the quarter were $3.04, a 3% decrease from the previous year’s $3.15. Adjusted EPS also saw a decline, falling 2% to $3.13 from $3.19.

Accenture Falls Short of Revenue, EPS Forecasts in Fiscal Q3

When comparing Accenture’s actual performance to market expectations, the results present a nuanced picture. Analysts had anticipated an EPS of $3.17 and revenue of $16.6 billion for the quarter. Accenture’s reported EPS of $3.04 fell short of expectations by $0.13, and even the adjusted EPS of $3.13 did not meet the forecasted figure. This shortfall in EPS can be attributed to higher effective tax rates and increased noncontrolling interests, which partially offset gains from a lower share count.

On the revenue front, Accenture’s $16.5 billion slightly missed the expected $16.6 billion, though it was within the company’s adjusted guidance range of $16.10 billion to $16.70 billion. The minor revenue decline of 1% in U.S. dollars was more than offset by a 1.4% increase in local currency, highlighting the impact of foreign exchange rates on the company’s financials. Despite these challenges, Accenture’s strong new bookings and continued investment in generative AI and other strategic areas underscore its commitment to growth and innovation.

Join our Telegram group and never miss a breaking story.

Accenture Updates Business Outlook for Fiscal 2024, Expects Full Year Revenue Growth of 1.5% to 2.5%

Accenture has updated its business outlook for fiscal 2024, reflecting cautious optimism. The company now expects full-year revenue growth of 1.5% to 2.5% in local currency, slightly narrowing the previous range of 1% to 3%. This adjustment accounts for an anticipated negative foreign-exchange impact of 0.7%, a revision from the earlier flat expectation. Accenture continues to project a GAAP operating margin of 14.8% and an adjusted operating margin of 15.5% for the full year.

For the fourth quarter of fiscal 2024, Accenture forecasts revenues between $16.05 billion and $16.65 billion, representing a 2% to 6% growth in local currency. The company also anticipates GAAP EPS to range from $11.29 to $11.44 and adjusted EPS from $11.85 to $12.00 for the full year, reflecting a slight downward revision from previous estimates. These projections include the effects of business optimization costs and gains from investments, indicating a balanced approach to managing operational efficiencies and strategic investments.

Strategic Initiatives and Shareholder Returns

Accenture’s strategic initiatives focus on driving growth and delivering value across multiple dimensions. The company has made 35 acquisitions year-to-date, deploying $5.2 billion in capital to strengthen its capabilities and market position. Additionally, Accenture’s commitment to generative AI, with $900 million in new bookings this quarter alone, highlights its proactive approach to leveraging emerging technologies for competitive advantage.

Regarding shareholder returns, Accenture declared a quarterly cash dividend of $1.29 per share, a 15% increase over the previous year’s rate. The company also repurchased or redeemed 4.3 million shares for $1.4 billion during the quarter, with a remaining share repurchase authority of approximately $3.3 billion as of May 31, 2024.

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

The post Accenture (ACN) Falls Short of Revenue, EPS Expectations in Fiscal Q4 appeared first on Tokenist.

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

In Goldman Sachs’ 2024 outlook, strategist David Kostin upped the S&P 500’s previous target from February’s 5,200 to 5,600 by the end of the year. Presently at 5,487, this puts the broader market growth by 2%. 

The culprits for this revision are mega-cap tech stocks and their strong earnings. In particular, the investor confidence in upward valuations based on generative artificial intelligence (AI). The tech heavyweights Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META) now make up a quarter of S&P 500 market cap.

Compared to an average S&P 500 company earnings per share (EPS) expectation of 6%, these five mega caps have consensus forecasts of 37%, creating a 31% EPS forecast gap. But on a long-term time scale, which mid-cap stocks have the potential to outperform the broader market in a similar manner?

Broadcom (NASDAQ: AVGO)

Over the last five years, AVGO stock has appreciated by 557%, but the fabless semiconductor company is looking to ramp up its market cap this year due to several factors. First, Broadcom established itself as a reliable supplier of everything related to data center infrastructure, from network controllers to enterprise storage.

This is demonstrated by the ongoing relationship with Google, having provided custom tensor processing units (TPUs) for Google’s increasing AI workloads. 

Secondly, to offset the somewhat cyclical nature of its core business model, Broadcom crossed a diversification milestone when it bought cybersecurity firm VMware (VMW) for $69 billion. In the latest earnings report in June, Broadcom’s revenue is now split between semiconductor solutions (58%) and infrastructure software.

Having beaten the Q2 EPS estimate of $10.84 at $10.96, Broadcom reported a non-GAAP net income increase of 20% year-over-year. Before VMware’s acquisition, the company finished the quarter with $977 million non-GAAP net income, growing its SaaS business model by 34% YoY.

Owing to this sticky model and high switching costs, it is likely that VMware will continue to boost Broadcom’s bottom line, quarter by quarter. Lastly, to invite greater retail participation, Broadcom announced a 10-for-1 stock split, scheduled to take effect on July 15th. 

Just as this move benefited Nvidia, investors should see similar capital inflows for AVGO shares as well. Over the last three months, AVGO stock is up 44%, while the 52-week average price is $1,090.77. 

Now at $1,802.52 per share, AVGO shares are heading for a $1,886.43 average price target, per Nasdaq forecasting data. The upper ceiling twelve months ahead is $2,100 per share. Of course, after mid-July, this will be split by 10x. 

Join our Telegram group and never miss a breaking story.

ASML Holding N.V. (NASDAQ: ASML)

As semiconductor technology underwent miniaturization waves over the decades, the technology became increasingly complex. This complexity led to few companies being able to manufacture semiconductor chips.

Dutch ASML is one of them. ASML is a layer zero company in this capacity because of its cutting-edge extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography machines. They enable the manufacturing of semiconductor nodes. While DUV handles less advanced 240 -153 nm chip nodes, EUV allows pushing the envelope into 7 nm, 5 nm, and below processes.

Divided between logic (41%) and memory (59%), ASML reported net system bookings at €3.6 billion in Q1 2024. Compared to Q1 2023 at €6.7 billion, ASML’s total net sales this Q1 were €5.3 billion. In the last five quarters, ASML generated the highest net sales of €7.2 billion in Q4 ‘23, revealing a somewhat cyclical nature of the company.

Although the semiconductor sector is cyclical, ASML’s unique wide-moat market position provides a buffer. By supplying semiconductor foundries globally, such as Samsung, Intel (NASDAQ: INTC), TSMC (NASDAQ: TSM), and others, the company is diversified against localized economic downturns.

This makes ASML one of the safest exposures in any investor’s portfolio. Over the last five years, ASML stock has increased 424%. At present, ASML shares are $1,061, significantly up from the 52-week average of $783.79 per share. Nasdaq’s forecasting puts the average ASML price target at $1,102.25 with an upper ceiling of $1,185 per share.

MicroStrategy (NASDAQ: MSTR)

As this business intelligence company became a proxy for Bitcoin (BTC), MSTR stock went up 901% over the last five years. Greatly outperforming Bitcoin itself in the last 6 months, at 167% vs 59% respectively, MicroStrategy is the stock maverick. 

The gambit is simple. The entire social structure is geared toward money devaluation because politicians are addicted to catering to their client groups. As this catering continues, federal budget deficits balloon alongside debt. In turn, the central banking system regulates the deep imbalances by constantly tampering with the money supply.

This effectively imposes an extra layer of taxation on non-client groups.

MicroStrategy bets that Bitcoin is the exit out of this system, owing to Bitcoin’s decentralized nature and its massive network effect. Although anyone can fork Bitcoin’s open source as a digital asset, this would be meaningless as that digital asset wouldn’t be anchored to a wide network of hardware assets and proof-of-work energy harnessing. 

This makes Bitcoin a separate category from millions of cryptocurrencies in the market. By leveraging debt, MicroStrategy has accumulated 214,400 bitcoins at an average purchase price of $35,158. At the present price of $1,469, MSTR stock is nearly double its 52-week average of $768.38 per share. 

What is your preferred type of asset in your portfolio: dividend-driven stocks, high-growth stocks, or cryptos? Let us know in the comments below.

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

The post These 3 Mid-Cap Stocks Have the Most Potential to Become Mega-Cap Stocks appeared first on Tokenist.

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

Dell Technologies (NYSE: DELL) announced today that its recently unveiled AI Factory platform will utilize Nvidia’s (NASDAQ: NVDA) high-performance GPUs to power xAI, the artificial intelligence startup founded by Elon Musk. The move comes as Dell seeks to accelerate the adoption of AI in the enterprise by simplifying the deployment process and making it more accessible to businesses of all sizes.

Dell’s AI Factory, first introduced last month, is a comprehensive offering designed to help organizations harness the power of AI at scale. By leveraging Nvidia’s cutting-edge chips, the platform will enable xAI to train and run its advanced AI models, including Grok, across traditional infrastructure and accelerated computing environments.

xAI and the AI Revolution

Founded in March 2023, xAI has quickly established itself as a major player in the AI industry. The San Francisco Bay Area-based company, which has a stated mission of “understanding the true nature of the universe,” has developed a range of AI models and tools, such as Grok and PromptIDE. Despite having only around 50 employees as of 2024, xAI has raised significant funding, reportedly raising up to $6 billion in recent Series B funding to support its ambitious plans, including constructing the world’s largest supercomputer in Memphis.

The partnership between Dell and xAI, facilitated by the AI Factory platform and Nvidia’s GPUs, is expected to play a significant role in xAI’s growth and the broader adoption of AI in the enterprise. The AI Factory provides an intelligent bundling of software and services, enabling organizations to customize and accelerate the development of in-house chatbots, digital assistants, and other AI-powered applications across various use cases, from content creation and language search to code generation and beyond.

Join our Telegram group and never miss a breaking story.

Dell and Nvidia Stock Brief

As of the close of trading on June 18, 2024, Nvidia’s stock price stood at $135.58, up 3.51% on the day and an impressive 173% year-to-date.

The company’s market capitalization now sits at $3.34 trillion, reflecting the growing demand for its AI-focused chips. Similarly, Dell’s stock price rose 5.01% to $149.15, with its market cap reaching $105.8 billion, as investors recognized the potential of its AI Factory offering.

By combining cutting-edge hardware, software, and services, these collaborations have the potential to accelerate the adoption of AI across industries, transforming the way businesses operate and driving unprecedented levels of innovation.

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

The post Dell “AI Factory” to Power Musk’s xAI With Nvidia Chips appeared first on Tokenist.

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

Meta Platforms, Inc. (NASDAQ: META) stock has experienced volatility following its Q1 2024 earnings report, but several factors suggest the social media giant is well-positioned for future growth. The company’s strong financial performance, strategic investments in cutting-edge technologies, and recent shareholder-friendly initiatives have created a compelling case for investors looking to capitalize on the tech sector’s long-term potential.

Meta’s Q1 results demonstrated the company’s ability to maintain robust growth, with revenue increasing by 27% year-over-year and earnings per share surpassing Wall Street expectations. Additionally, the company’s massive user base, which includes over 3.2 billion monthly active users across its family of apps, provides perhaps an underrated yet unparalleled foundation for future expansion and monetization opportunities.

Meta’s heavy investments in artificial intelligence (AI) and virtual reality (VR) technologies also position the company at the forefront of the next generation of computing platforms. As these technologies mature and are widely adopted, Meta is poised to reap significant benefits from its early mover advantage and extensive research and development efforts. While currently operating at a loss, the company’s Reality Labs division has the potential to unlock new revenue streams and drive growth in the coming years as the metaverse concept gains traction.

Why Meta Stock is a Dark Horse Among Big Tech

Despite the market’s negative reaction to Meta’s plans for increased spending and the losses incurred by its Reality Labs division, the company’s core business remains strong, and its investments in AI and VR are likely to pay off in the long run. Meta’s AI capabilities have already been successfully integrated into its advertising platform, enhancing ad targeting and driving better returns for advertisers. As the company continues to refine its AI algorithms and apply them across its various products and services, it is expected to unlock new opportunities for growth and efficiency.

Moreover, the rumors of a potential stock split in 2024 have generated excitement among investors. A stock split would make Meta’s shares more accessible to a broader range of retail investors, potentially leading to increased demand and liquidity for the stock.

Join our Telegram group and never miss a breaking story.

META Still Undervalued When Compared to Big Tech Peers

Although Meta’s market capitalization of $1.27 trillion is smaller than that of some of its Big Tech counterparts, such as Apple (NASDAQ: AAPL) ($3.29T), Microsoft (NASDAQ: MSFT) ($3.32T), Alphabet (NASDAQ: GOOG) ($2.17T), and Amazon (NASDAQ: AMZN) ($1.90T), the company’s stock has outperformed the broader market in 2024. Meta’s shares have surged 41% year-to-date, compared to the S&P 500’s 15% gain. Moreover, Meta’s price-to-earnings (P/E) ratio of 28.7 is lower than Apple’s (33.3), Microsoft’s (38.7), and Amazon’s (51.3), indicating that the stock may be relatively undervalued compared to its peers.

Meta’s Shares Currently Trading 5% Below 52-Week High

As of the latest trading session, Meta’s stock is priced at $499.49, representing a 1.41% decline on the day. The stock is currently trading 5% below its 52-week high. However, analysts remain bullish on Meta’s prospects, with an average price target of $515.52, suggesting a potential upside of 3%.

Meta recently announced its first-ever quarterly dividend of $0.50 per share and has authorized a substantial $50 billion share repurchase program, demonstrating its commitment to returning value to shareholders. These developments have contributed to increased trading activity, with a volume of 13.06 million shares, surpassing the 3-month average of 6.51 million shares.

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

The post Why META is a Dark Horse in the Current AI Market Cycle appeared first on Tokenist.

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

The U.S. stock market saw mixed performance on Tuesday morning, with NextEra Energy (NYSE: NEE) and Boeing shares (NYSE: BA) declining while Occidental Petroleum (NYSE: OXY) experienced gains.

The divergent moves come amid significant news developments for each company, including a Senate hearing on Boeing’s safety practices, Warren Buffett’s increased stake in Occidental Petroleum, and NextEra Energy’s plans to sell equity units to fund renewable energy projects.

Boeing Faces Scrutiny Over Safety and Whistleblower Claims

Boeing CEO Dave Calhoun is set to face tough questions from U.S. senators regarding the company’s safety culture and new whistleblower allegations.

The Senate hearing follows a January mid-air emergency involving an Alaska Airlines 737 MAX 9, which raised widespread concerns about the plane’s safety. Senator Richard Blumenthal revealed that a current Boeing quality assurance investigator, Sam Mohawk, recently informed the panel of systemic disregard for documentation and accountability of nonconforming parts.

Mohawk claimed that nonconformance reports soared 300% compared to the period before the 737 MAX grounding and that the program intentionally hid faulty parts from the FAA during an inspection. While Calhoun is expected to acknowledge shortcomings, he will also emphasize Boeing’s efforts to improve.

The company has been under increased scrutiny from regulators and airlines since the January incident, with the FAA recently giving Boeing 90 days to develop a comprehensive quality improvement plan.

Join our Telegram group and never miss a breaking story.

Buffett Bets Big on Occidental Petroleum

Warren Buffett’s Berkshire Hathaway has significantly increased its stake in Occidental Petroleum, acquiring nearly 3 million additional shares over three trading days.

The purchases, made at an average price of $59 per share, bring Berkshire’s total holdings to 255,281,524 common shares, representing almost 29% of the company. The stake, worth approximately $15.37 billion as of Monday, underscores Buffett’s confidence in Occidental Petroleum and the U.S. shale industry.

Despite sparking takeover speculation, Buffett has denied any intentions to acquire control of the company, stating that they like OXY’s position in the Permian Basin but wouldn’t know what to do with a controlling interest. Occidental Petroleum, meanwhile, is working to close its $12 billion acquisition of Permian producer CrownRock by August 2024.

NextEra Energy to Raise Funds for Renewable Projects

NextEra Energy announced plans to sell $2 billion of equity units to Wells Fargo Securities and BofA Securities to raise capital for its renewable energy projects.

The news sent NextEra shares down 3.4% in morning trading. The net proceeds from the sale will be used to fund investments in the company’s energy and power projects, with plans to invest $12 billion in solar and $1.5 billion in battery storage from 2024 to 2027.

Each $50 equity unit will have a contract to purchase NextEra Energy common stock in three years and a 5% ownership interest in a NextEra Energy Capital Holdings debenture due June 1, 2029. NextEra Energy’s focus on renewable energy comes as the sector grows and attracts investor interest.

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

The post Stocks to Watch Today: Boeing, Occidental Petroleum, NextEra Energy appeared first on Tokenist.

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

America’s Car-Mart (NASDAQ: CRMT) has announced its financial results for the fourth quarter and the full fiscal year ending April 30, 2024. The company reported revenue of $364.7 million for the quarter, marking a 5.8% decline compared to the same period last year. Despite the dip in revenue, the gross margin improved to 35.5%, up by 200 basis points. Total collections also saw a positive trend, increasing by 5.0% to $187.2 million. Additionally, the company made a favorable adjustment to its allowance for credit loss, reducing it to 25.32% from 25.74%.

However, not all metrics painted a rosy picture. Net charge-offs as a percentage of average finance receivables rose to 7.3% compared to 6.3% in the previous year. Interest expenses also saw a significant increase, climbing by $4.9 million, or 38.2%. The quarter’s diluted earnings per share (EPS) stood at $0.06, a sharp decline from the $0.32 reported in the same quarter last year. This EPS decline is a concern for investors and market analysts alike.

CRMT Misses EPS and Revenue Expectations in Q4

When comparing the current quarter’s performance against market expectations, America’s Car-Mart fell short. Analysts had projected an EPS of $0.063, but the actual EPS came in slightly lower at $0.06. While this might seem like a minor discrepancy, it underscores the challenges the company is facing. Revenue expectations were pegged at $364.86 million, and the actual revenue of $364.7 million missed this target by a small margin. Although the shortfall in revenue is minimal, it still highlights the company’s struggle to meet market expectations.

The improvement in gross margin and total collections could be seen as positive signs, but they were not enough to offset the increased interest expenses and higher net charge-offs. These factors collectively contributed to the lower-than-expected EPS. The company’s ability to manage its finance receivables and control interest expenses will be crucial in the coming quarters to meet or exceed market expectations.

Join our Telegram group and never miss a breaking story.

America’s Car-Mart Focused on Improving Credit Loss Allowance Further

Looking ahead, America’s Car-Mart has provided guidance that aims to address some of the issues highlighted in the current quarter’s performance. The company plans to focus on improving its credit loss allowance further and managing its interest expenses more effectively. These steps are expected to enhance the overall financial health of the company and provide a more stable foundation for future growth.

Additionally, the company has indicated that it will continue to work on improving its gross margin and total collections. These areas have shown positive trends in the current quarter, and sustained focus on them could yield better financial results in the upcoming quarters. The management’s strategy will likely involve a combination of cost-cutting measures and revenue-enhancing initiatives to achieve these goals.

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

The post America’s Car-Mart Q4 Revenue Declines 5.8% to $364.7M, EPS Below Forecast appeared first on Tokenist.

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

Patterson Companies, Inc. (NASDAQ: PDCO) reported its fiscal 2024 fourth-quarter results, showcasing a slight increase in net sales by 0.1% year-over-year, amounting to $1.72 billion. Despite the modest growth in overall sales, internal sales experienced a minor decline of 0.5%. The company faced a challenging market environment but managed to maintain stable performance, driven primarily by strong growth in production animal and dental consumables segments, which saw a 3.7% year-over-year increase.

The fourth quarter’s GAAP earnings per diluted share were reported at $0.74, while adjusted earnings per diluted share were $0.82. Both figures were negatively impacted by $0.04 per diluted share due to a cybersecurity attack on Change Healthcare, a vendor partner. Net income attributable to Patterson Companies, Inc. for the quarter stood at $67.0 million, compared to $75.0 million in the same period last year. This decline is primarily attributed to lower equipment sales and the aforementioned cybersecurity incident.

In the dental segment, reported net sales were $657.8 million, with internal sales decreasing by 3.8% year-over-year. However, internal sales of dental consumables increased by 3.7%, excluding the deflationary impact of certain infection control products. The animal health segment reported net sales of $1.06 billion, with internal sales growth of 2.5% driven by the production animal business. This segment also saw a notable increase in value-added services by 15.0%.

Patterson Companies, Inc. (PDCO) Beats EPS Expectations by $0.01

Patterson Companies’ fourth-quarter performance slightly missed the expectations set by analysts. The expected earnings per share (EPS) for the quarter were $0.83, while the actual adjusted EPS came in at $0.82. Although the difference is minimal, it highlights the impact of unforeseen challenges, such as the cybersecurity attack, on the company’s financial performance. Additionally, the expected revenue for the quarter was $1.7 billion, and the company exceeded this expectation marginally with reported net sales of $1.72 billion.

The company’s ability to meet revenue expectations while slightly missing the EPS target indicates a resilient business model but also underscores the need for improved operational efficiency. The decline in net income compared to the previous year further emphasizes the impact of external factors and the importance of strategic adjustments to mitigate such risks. The dental segment’s internal sales decline of 3.8% contrasts with the overall positive performance in consumables, suggesting a need for targeted strategies to boost equipment and value-added services sales.

Despite these challenges, Patterson Companies demonstrated a robust performance in the animal health segment, with internal sales growth driven by consumables and value-added services. This segment’s success highlights the company’s strong positioning in the production animal market and its potential for future growth.

Join our Telegram group and never miss a breaking story.

Patterson Companies Expect $2.23 to $2.43 Adjusted EPS for FY 2025

Looking ahead to fiscal 2025, Patterson Companies has issued guidance for both GAAP and non-GAAP adjusted earnings. The company expects GAAP earnings to be between $2.00 and $2.10 per diluted share and non-GAAP adjusted earnings to be between $2.33 and $2.43 per diluted share.

The guidance also takes into account the expected impact of deal amortization expenses, estimated at approximately $29.1 million or $0.33 per diluted share.

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

The post Patterson Companies Beats EPS Forecast by $0.01 in Fiscal Q4 appeared first on Tokenist.

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

At last week’s earnings call for Q2 period, Broadcom (NASDAQ: AVGO) announced a 10-for-1 stock split scheduled for July 15th. The fabless semiconductor company headquartered in San Jose, California is following Nvidia’s lead. Since Nvidia’s own stock split took effect on June 10th, turning investors’ one share into 10 shares’ worth, NVDA stock is up nearly 9%.

Just like stock buyback programs, stock splits are becoming increasingly popular to lock in shareholders and attract new ones. Not only do stock splits increase trading liquidity by making shares more affordable, but denominational shift makes cheaper shares more perceptually attractive for retail investors habituated to small-cap stocks. 

Additionally, by going cheaper than its rival AMD (NASDAQ: AMD) presently at $130 vs $154 respectively, Nvidia closed in on its peer, making it even more comparatively enticing. With this psychology in play, in the case of both Nvidia and Broadcom, shareholders see stock splits as a sign of further growth.

But do Broadcom’s fundamentals also follow Nvidia’s?

Broadcom’s Business Model

Akin to AMD and Nvidia, Broadcom relies on outsourcing its chip designs to third-party manufacturing firms (foundries) like TSMC (NYSE: TSM) or GlobalFoundries (NASDAQ: GFS). This leaves Broadcom’s focus on innovation and marketing, keeping the company agile to market’s needs.

For instance, Broadcom is a supplier of custom tensor processing units (TPUs) to Google for its AI workloads, having excluded Marvell Technology (MRVL) as a potential candidate.

Diverting from the supply of GPUs or CPUs, Broadcom caters to a more base infrastructure layer, ranging from data centers, wireless communications, network controllers, switching chips, enterprise storage, and software solutions. In the latter category, Broadcom bought Symantec in 2019 only to sell it to Accenture. 

However, VMware (VMW) still operates under Broadcom’s umbrella, having acquired the cyber firm for $69 billion, as a direct competitor to cloud-native CrowdStrike (NASDAQ: CRWD). This diversification, with revenue split between 42% on infrastructure software and 58% on semiconductor solutions, is good news for AVGO shareholders.

Join our Telegram group and never miss a breaking story.

Broadcom’s Financial State Tied with Cybersecurity

In the latest Q2 earnings report delivered on June 12th, Broadcom beat earnings per share (EPS) estimate of $10.84 at $10.96. Likewise, Broadcom’s revenue of $12.49 billion beat the estimate of $12.03 billion, per LSEG data. For the non-GAAP net income, which excludes one-time expenditures and stock-based compensation, Broadcom reported a 20% YoY increase to $5.4 billion.

Also excluding VMWare integration and restructuring costs, Broadcom delivered $5.3 billion free cash flow, a YoY uptick of 18%. Owing to VMWare revenue contribution, Broadcom is now forecasting 2024 revenue outlook at ~$51 billion, up 42% from year prior. 

Before its acquisition by Broadcom, VMware ended the quarter with $977 million operating income (non-GAAP) and 81.20% gross margin, the lowest on record from the high of 86.90% in 2014. This reduction in profitability is mainly due to the cybersecurity’s competitive arena, presently spearheaded by CrowdStrike (CRWD).

However, having learned from Symantec’s acquisition, Broadcom’s restructuring efforts are likely to more than compensate for the costly $69 billion purchase. In the pre-acquisition quarter, VMware generated 34% YoY growth in software as a service (SaaS) revenue via subscriptions. 

Within a couple of years, VMware’s multi-cloud momentum of 36% SaaS ARR (annual recurring revenue) is poised to compound on AI-driven networking and data center demand. 

Analyst Forecasting of AVGO Shares

Year-to-date, Broadcom stock is up 65%. At the present price of $1,798, AVGO shares are above the all-time high of $1735 on June 14th. Over the last 52 weeks, the average price of AVGO stock is $1083.11 per share. 

Per Nasdaq’s forecasting aggregation, AVGO stock is headed for an average price target of $1886.43 per share, which will be divided by 10 next month. At that point, Broadcom will be in the range of TSMC (TSM), currently priced at $175 per share. 

Considering that VMware’s business model of long-term contracts and high-switching costs for clients is sticky, that stickiness transferred to Broadcom. Although Broadcom’s own revenue model is sticky, its core hardware business is more cyclical, now offset by the pricey acquisition. 

In the end, Broadcom’s dual market segments are forecasted to double in size. Fortune Business Insights puts cybersecurity market CAGR at 13.8% by 2030, while AI infrastructure market size is heading for a CAGR of 20.4% by 2032.

Have you ever caught yourself dismissing a certain stock because it was priced over $1,000 per share? Let us know in the comments below.

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

The post Will Broadcom’s 10-for-1 Split Offer a Boost for the Stock? appeared first on Tokenist.

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

Best Buy (NYSE: BBY) and Micron Technology (NASDAQ: MU) both received bullish analyst calls on today, while GameStop’s (NYSE: GME) annual meeting is generating significant interest among its devoted retail investor base. Let’s take a look at the three stocks to watch today.

Best Buy Gets a Boost from UBS Analysts, New Price Target

Electronics retailer Best Buy saw its shares jump 3.5% to $90.28 after analysts at UBS upgraded the stock to a Buy rating from Neutral.

The firm also raised its price target to $106 from $85, citing several potential growth drivers over the next 18 months. These catalysts include an improving housing market, a looming replacement cycle for electronics, increasing adoption of AI-powered devices, and expansion into new product categories. UBS anticipates a “nice recovery” for Best Buy’s sales in late 2024 and 2025.

The analysts also highlighted the company’s successful restructuring efforts, which have boosted its earnings potential, and its attractive valuation. Best Buy currently sports a 4.3% dividend yield and trades at a 30% discount to the S&P 500.

Join our Telegram group and never miss a breaking story.

GameStop Shareholder Meeting in the Spotlight

Meanwhile, GameStop is holding its annual shareholder meeting today at 12:30pm ET. The event has generated significant buzz among the company’s loyal base of retail investors on social media platforms.

GameStop’s stock, which has been a favorite of the “meme stock” crowd, has gained 67% since influential investor Keith “Roaring Kitty” Gill resurfaced in May after a three-year hiatus. Gill recently disclosed a sizable 9 million share stake in the video game retailer. However, it remains unclear exactly what issues will be discussed at the meeting or if Gill himself will attend.

GameStop shares were trading 3.6% lower at $27.67 as of 12:02pm ET.

Micron Technology Attracts Upgrade

In the technology sector, memory chip maker Micron saw its shares gap up in pre-market trading after receiving an upgrade from Cantor Fitzgerald. The firm raised its price target on Micron to $180 from $150 and reiterated its Overweight rating on the stock.

Several other analysts have also issued bullish calls and hiked their price targets on Micron in recent months. However, the company has also seen some significant insider selling, with its CEO and SVP offloading shares worth over $2.6 million between April and June. Institutions remain confident in Micron’s prospects though, with over 80% of its shares held by institutional investors. Micron posted strong fiscal Q2 results in March, beating consensus estimates with revenue of $5.82 billion.

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

The post Stocks to Watch Today: Best Buy, GameStop, and Micron Technology appeared first on Tokenist.