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Apple marry Google? Might be a good idea

Recently $Apple(AAPL)$ and $Alphabet(GOOGL)$ are both in trouble, for their lagging behind being investors' doubts about their AI development. For Apple, both main pillars are facing a crisis: 1. The flagship product iPhone is just hitting a "slump" year, with a "price drop" and "speed drop" in the Greater China region, and even facing lawsuits from investors; 2. Apple store is cutting fees and still facing controversy.For Google, it is uncertain whether AI will become its "spear" or "shield": 1. Although Gemini is continuously iterating, it still has a gap of approximately half a year compared to OpenAI; 2. AI robots are to some extent replacing browser searches, bringing uncertainty to the advertising
Apple marry Google? Might be a good idea

How Bank of Japan decides the liquidity?

In the history, the Bank of Japan has often been ambiguous in its attitude towards policy shifts, allowing the market to digest expectations on its own but without providing a clear timetable. Policy shifts are often "unexpected yet reasonable." $Japanese Yen - Mar 2024(JPY2403)$ $Japanese Yen - main 2406(JPYmain)$ $iShares MSCI Japan ETF(EWJ)$ The long-term loose policy has led to the monetization of the fiscal deficit, distortion of government bond prices, and depreciation of the yen. In recent years, as the growth momentum of the Japanese economy gradually recovers and inflation levels warm up, the subjective and objective conditions for the Bank of J
How Bank of Japan decides the liquidity?

BIG TECH WEEKLY | Why Tesla On Pressure?

Big-Tech’s PerformanceThe trading on Quadruple Witching Day is often particularly intense. This is the day when four financial derivatives of U.S. stocks— "stock index futures, stock index options, individual stock futures, and individual stock options"— all expire at once each quarter. Investors are eager to close their positions on this day, often leading to a sharp increase in market trading volume and greater volatility. Since Nvidia option trades account for 1/4 of the single-ticket option market, Nvidia option trading will be a focal point.Statistics of the trading on Quadruple Witching Day in the past 30 years show that the probability of a rise in the week of March is slightly higher, but the probability of a rise in the following week is the lowest. Although the average return for
BIG TECH WEEKLY | Why Tesla On Pressure?

How did market react to Quadruple witching day?

Quadruple witching day refers to the expiration settlement day of derivative financial products in the US stock market on the third Friday of March, June, September, and December each year. 四巫The last trading hour of the day is called the Quadruple witching hour, from 3 p.m. to 4 p.m. New York time. There are four types of products for expiration settlement, hence called Quadruple witching day: stock index futures $SP500 index 2403 (ES2403)$, stock index options, stock options, and individual stock futures. Individual stock futures trading in the US market started on November 8, 2002, before that it was referred to as Triple witching day or Triple witching hour. The main impact of Quadruple witching day is a significant increase in trading volum
How did market react to Quadruple witching day?

Why repurchase is important to Chinese stocks

$Kanzhun Limited(BZ)$ skyrocketed by 20% in a day, in addition to the performance exceeding expectations, the company's announcement of repurchase is also an important reason. The purpose of stock repurchase by listed companies is usually to manage market value, provide equity incentives, stabilize stock prices, and enhance EPS and ROE, etc. Stock repurchases in the US stock market are important factors supporting the market. Although enterprise repurchase activities fell sharply in 2020 due to the impact of the COVID-19 pandemic, the total repurchase amount of US stocks reached $1.025 trillion in 2023. $Apple(AAPL)$ as a model of repurchase and dividend in the capital market, distributed a total of $132 bill
Why repurchase is important to Chinese stocks

What risk assets will benefit from outflows of Chips mania??

Market's concentration began to disperse and be redistributed to other risky sectors.Last Friday, chip stocks started to rise and fall, continuing until Monday, causing the market's risk sentiment to become mixed. There is a rotation between sectors, with funds starting to flow into safe-haven sectors. There are also differences among technology stocks, as star chip stocks with high gains in recent weeks have begun to pull back, including companies like $NVIDIA Corp(NVDA)$ $Advanced Micro Devices(AMD)$ , and $Micron Technology(MU)$ but companies that previously declined, even if they are AI concepts, have also seen rebounds, such as
What risk assets will benefit from outflows of Chips mania??

Liquidity of US Market Approaching a turning point

Global risk asset preferences rose in February, with markets such as BTC $iShares Bitcoin Trust(IBIT)$ and $NASDAQ(.IXIC)$ continuing to rise, ignoring expected interest rate cuts and rising US treasury yields. The release of liquidity in the first quarter drove the performance of risk assets, with the approval of Bitcoin spot ETFs and the performance of US tech stocks exceeding expectations. These factors were all supported by the ample liquidity in the US financial market. $S&P 500(.SPX)$ However, financial liquidity may shrink in the second quarter, which could lead to a redistribution of funds between stocks and bonds. The impact of the US liquidity tran
Liquidity of US Market Approaching a turning point

BIG TECH WEEKLY | Why AI mania is somewhat different with Dot Bubble?

Big-Tech’s PerformanceThe market is still focused on large technology stocks. Despite fluctuations, the concept of AI continues to attract funds with different risk preferences. Powell's testimony was not surprising, and after emphasizing the risk of cutting rates too late, the market's risk appetite has rebounded.As the earnings season nears its end, investors' demands for growth stocks have clearly increased. Companies that are able to exceed expectations are further rewarded in the aftermarket.As of the close on February 29th, the best performing large technology companies in the past week were $NVIDIA Corp(NVDA)$ +17%, followed by $Meta Platforms, Inc.(META)$ +4.5%,
BIG TECH WEEKLY | Why AI mania is somewhat different with Dot Bubble?

How CrowdStrike's Presenting A Difference Earnings?

$CrowdStrike Holdings, Inc.(CRWD)$ s share price surged 15% after hours on Tuesday, as the company reported better-than-expected results for the fourth quarter (ending January 31) and raised its guidance for the next quarter.Generally Beat PerformanceRevenue was $845.3 million, beating the expected $839.96 million. Adjusted EPS was $0.95, surpassing the market expectation of $0.82.Key indicators grew: the company's annual recurring revenue (ARR) increased year-on-year by 34%, reaching $3.44 billion; in addition, subscription revenue, non-GAAP subscription gross profit and other key indicators all grew compared to the same period last year, and most exceeded market expectations.Performance guidance raised.The company expects adjusted EPS for the fi
How CrowdStrike's Presenting A Difference Earnings?

Two events crucial for rate cut this week

This week, Federal Reserve Chairman Powell will attend a congressional hearing to present the semi-annual monetary policy report, followed by the release of the February non-farm payroll report by the U.S. Department of Labor. March 6th to March 7th, Chairman Powell will testify before Congresswhere the focus is expected to be on the Fed's handling of inflation and its monetary policy stance. With January's CPI exceeding expectations, a rebound in core PCE, and strong service sector inflation, Powell is likely to emphasize the need to remain patient with rate cuts given the overall performance of the U.S. economy, signaling a hawkish stance.However, there is increasing pressure from the U.S. government for rate cuts, which Powell will have to address. Sustaining high interest rates may tig
Two events crucial for rate cut this week

BIG TECH WEEKLY | Does Apple Need A New Plan?

Big-Tech’s PerformanceAs the Nasdaq hits new highs, the risk sentiment for tech stocks has risen again. In addition to growth stocks that have seen significant fluctuations due to earnings reports and digital currency, big tech companies are also trading at high levels.As of the close on February 29th, the best performing big tech companies in the past week were $Tesla Motors(TSLA)$ +2.26%, followed by $Amazon.com(AMZN)$ +1.25%, $Meta Platforms, Inc.(META)$ +0.82%, $NVIDIA Corp(NVDA)$ +0.73%, $Microsoft(MSFT)$ +0.48%, $Apple(AAPL)$ -1.9
BIG TECH WEEKLY | Does Apple Need A New Plan?

Salesforce is not counting on AI?

After the announcement of the financial report on Wednesday, $Salesforce.com(CRM)$ experienced a significant shock, dropping by over 6% at one point before rebounding. Compared to the strong performance in the fourth quarter, the guidance for the next fiscal year appears to be more moderate.In the financial report until January 31st, the company reported revenue of $9.29 billion, an 11% year-over-year increase, with subscription and support revenue reaching $8.75 billion, a 12% increase, and service revenue of $2.16 billion.The net profit was $1.45 billion, exceeding analysts' forecast of $1.26 billion, and diluted EPS was $1.47, also surpassing the expected $1.29. In the same period last year, the EPS was -$0.10.Furthermore, the company announced
Salesforce is not counting on AI?

Snowflake's Guidance Down Is A Warning To Cloud Insdustry?

$Snowflake(SNOW)$ 's stock price plummeted 23% after hours due to two negative announcements in its Q4 earnings report, which undermined market confidence.Q4 Earnings is still a super beatwith revenue reaching $774.6 million, a 32% year-over-year increase, surpassing the market's expected $760.4 million. Product revenue also grew by 33% year-over-year, reaching $738.1 million, higher than the expected $723.3 million.The adjusted EPS was $0.35, exceeding the market's expected $0.18.The remaining performance obligations (RPO) during the period increased by 41% year-over-year, reaching $5.2 billion. Although the user retention rate decreased slightly, it remained high at 131% Net Dollar Retention.Two Negative NewsA downward guidance and an expected s
Snowflake's Guidance Down Is A Warning To Cloud Insdustry?

Small-Cap is another frenzy after AI?

Compared to the AI frenzy that greeted the entire market last week due to the iconic earnings report of $NVIDIA Corp(NVDA)$ this week has seen opportunities for other small and medium-cap stocks instead of AI stocks. Morning Star's Barometer shows that small-cap growth and small-cap value stocks are more favored by investors.Small-cap growth stocks have been favoredFirstly, the fundamental reason for this is the increase in investor risk appetite. For example, high-preference institutional investor Cathie Wood, without holding NVIDIA (NVDA) (not benefiting from the AI frenzy), has outperformed the large-cap stocks this week.Stocks related to digital currency, such as $Coinbase Global, Inc.(COIN)$ and
Small-Cap is another frenzy after AI?

Beyond meat squeeze !

$Beyond Meat, Inc.(BYND)$ surged after its financial report, with the stock price rising by more than 100% in after-hours trading.There are two reasons for this surge: anticipated reversal and short covering. In terms of performance, although Q4 revenue still decreased by 7.8%, remaining in a contraction range, the $73.7 million revenue far exceeded the market's expected $66.7 million.The reason for the revenue decline is not a decrease in sales volume, but rather a decrease in selling price (corresponding to the decline in CPI), as the price per pound decreased by 14.6%; in fact, product sales volume increased by 8.0%.Of course, increasing market share through price reduction is also an important factor. The company plans to enhance its competiti
Beyond meat squeeze !

Unity is still not united? Uncertainty makes a 20% plunge

$Unity Software Inc.(U)$ released Q4 earnings report after market close on February 26, with a significant drop of 19%.Since the former CEO’s inappropriate comments in Q3 last year regarding the "payment policy change", the company's management issues have also shown some consequences.Continuous layoffs and business adjustments (reducing loss-making businesses) have brought a lot of uncertainty to the company. The company expects to complete the restructuring by the end of Q1 and revise its performance expectations for Q1.The most anticipated Vision Pro and AI-related businesses have not yet brought in revenue, at least until the market begins to take shape in Q3 of this year.Investment HighlightsOverall, it fell short of expectations. Adjusted reven
Unity is still not united? Uncertainty makes a 20% plunge

BIG TECH WEEKLY | How To Catch An Effective Surprise?

Big-Tech’s Performance“Long bull short bear” has been consistant for the first two months, Nvidia's outstanding performance push the market risk appetite. It could be the first "Too Big To Fail" tech-stock in this age.As of the close on February 22, the best performing major tech companies in the past week were $NVIDIA Corp(NVDA)$ +6.28%, followed by $Tesla Motors(TSLA)$ +4.61%, $Meta Platforms, Inc.(META)$ +2.72%, $Amazon.com(AMZN)$ +2.11%, $Microsoft(MSFT)$ +0.53%, $Apple(AAPL)$ +0.12%, and $Alph
BIG TECH WEEKLY | How To Catch An Effective Surprise?

Why should take the Google dip?

The growth story of $Alphabet(GOOG)$ s far from over. $Alphabet(GOOGL)$ Recently, the high popularity of Open AI's Sora, which continuously shocks the industry with AI videos, has sparked ongoing discussions about Google. Investors may overlook one thing: Sora's underlying Scalable Diffusion Model is closely related to two papers from the Google team.So theoretically, Google can provide products that are just as competitive.The newly released Gemini 1.5 series sets a new record in the large language model field, supporting a context window of 10,000K tokens, surpassing the performance of GPT-4 Turbo. It even published a paper report (click to read) detailing its functions and advantages, including but no
Why should take the Google dip?

Amazon to Join Dow Jones, what's the effect?

Dow Jones Indices announced after the Tuesday trading session that there will be two component stock adjustments (Reconstitution). $Amazon.com(AMZN)$ will replace $Walgreens Boots Alliance(WBA)$ in the Dow Jones Industrial Average (.DJI) to reflect the evolving nature of the economy. $Uber(UBER)$ will join the Dow Jones Transportation Average (DJTA), replacing $JetBlue Airways(JBLU)$ in order to increase the index's exposure to the ride-sharing industry. The changes will take effect before the market opens on February 26th.Tips:The Dow Jones is calculated by price weighting, so theoretically, stocks with higher prices hav
Amazon to Join Dow Jones, what's the effect?

European Top 10 Stocks, who treats stakeholders the best?

In terms of market cap, they all exceed 180 billion euros, with the largest being Novo Nordisk, at nearly 520 billion euros, listed in Denmark. Next is $LVMH-Moet Hennessy Louis Vuitton(LVMUY)$ listed in France, $ASML Holding NV(ASML)$ listed in the Netherlands, $Nestle S.A.(NSRGY)$ in Switzerland, $L'Oreal Co.(LRLCY)$ listed in France, $Hermes International SA(HESAY)$ listed in France, $Novartis AG(NVS)$, and $SAP SE(SAP)$ $Roche Holding Ltd(RHHBY)$
European Top 10 Stocks, who treats stakeholders the best?

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