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10-16

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Alphabet Stock Looks Cheap - Analysts Raising Price Targets

10-16

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@TigerOptions:Why Palantir Could Retrace Here

09-30

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@Optionspuppy:I closed $iShares Gold Trust(IAU)$ ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr

09-19

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All About Nvidia Chips, AI Hype and What Lies Ahead

09-19

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09-19

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SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy

09-19

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24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%

09-19

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09-19

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Gold Is Giving You a Once-in-A-Generation Buying Opportunity on Its Way to 4,400

09-02

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08-31

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Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?

08-31

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Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?

08-31

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Microsoft's Share Price Is Still Not Justified

08-31

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Singapore's Top 10 Most Important REITs

08-28

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Amazon: This Could Be The Top

07-30

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Investors on Alert for Fed Signals of September Rate Cut

07-30

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Meta Q2 Earnings Preview: Best AI Stock

07-30

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CrowdStrike: Here's The Price I Will Buy After Major Outage

07-30

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Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated

07-30

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Ignore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market

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Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.GOOG is at $167.27, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” I argued that GOOG was worth at least $193 per share based on its strong free cash flow  and FCF margins.Here is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month  FCF margin, Alphabet could generate $71.593 billion in 2025.In other words, it provides a good yield - 1.1% for the next 3 weeks - with over 8.3% downside protection.That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stoc","content":"<html><head></head><body><p><strong>Despite its recent rise, Alphabet Inc. (GOOG)</strong> stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.</p><p>GOOG is at <strong>$167.27</strong>, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.</p><p>On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “<strong>Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” </strong>I argued that GOOG was worth at least $193 per share based on its strong free cash flow (FCF) and FCF margins.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44d5b0afa5a02933432f5225d6dd6c8b\" tg-width=\"930\" tg-height=\"525\"/></p><p> GOOG - Barchart - As of Oct. 15, 2024</p><p>Moreover, I showed that shorting out-of-the-money (OTM) puts was one way to play this. This play also works today. First, let&#39;s look at the price targets.</p><h3 id=\"id_1623892895\">Price Target Update</h3><p>Here is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month (LTM) FCF margin, Alphabet could generate $71.593 billion in 2025.</p><p>That implies that its valuation could be substantially higher. For example, using a 3.0% FCF yield metric, its historical valuation, the stock could end up with a market cap of $2.386 trillion (i.e., $71.593b/0.03 = $2,386 billion).</p><p>That represents a potential 16.3% rise in GOOG&#39;s market value of $2.052 trillion today. So, GOOG stock is worth <strong>$194.53</strong> per share (i.e., 1.163 x $167.27 today).</p><p>That is close to what other analysts have as their price targets. For example, AnaChart reports that 43 analysts have an average price target of $193.57. In fact, these same analysts upgraded their prior average of $173.90 as I noted in my prior article.</p><p>The bottom line is that GOOG stock still looks cheap here. One way to play this is to both own the stock and also short out-of-the-money puts.</p><h3 id=\"id_2848584233\">Shorting OTM Puts</h3><p>For example, look at the Nov. 8 put option expiry chain - a little over three weeks from today (24 days). It shows that the $155.00 strike price, which is over 7.4% below today&#39;s trading price, has a price of $1.74 in the midprice.</p><p>That represents an immediate short-put play yield of 1.12% (i.e., $1.74/155.00).</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c6e318c4f14bea12a39e768f2b395ddb\" tg-width=\"1138\" tg-height=\"596\"/></p><p> GOOG Puts - expiring Nov 8 - Barchart - As of Oct. 15, 2024</p><p>That means that an investor who secures $15,500 in cash or buying power with their brokerage firm can enter a trade to “Sell to Open” 1 put contract at $155.00 for expiry on Nov. 8. The account will then immediately receive $174 if the midprice is obtained.</p><p>So, as long as GOOG stays over $155.00 for the next 24 days, the account will not be assigned to buy 100 shares at $155.00. Moreover, even if that happens, the investor&#39;s breakeven price is $155.00-$1.74, or $153.26. That is 8.37% below today&#39;s trading price.</p><p>In other words, it provides a good yield - 1.1% for the next 3 weeks  - with over 8.3% downside protection. That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stock as well as additional income. The worst that can happen is that they buy more shares.</p><p>One interesting point to note here is that the delta is about 20% - which is ideal for shorting OTM puts. That implies that for every $1.00 move in the underlying stock, the put will move 20 cents. In other words, if the stock falls $10, the put will rise by $2.00. But in this case, the option is over $12 out-of-the-money (OTM), so there is still a good chance of making money.</p><p>The bottom line is GOOG stock looks cheap here. One way to play this is to both own GOOG shares and short OTM puts in nearby expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alphabet Stock Looks Cheap - Analysts Raising Price Targets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlphabet Stock Looks Cheap - Analysts Raising Price Targets\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-16 16:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Despite its recent rise, Alphabet Inc. (GOOG) stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts...</p>\n\n<a href=\"https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2475658496","content_text":"Despite its recent rise, Alphabet Inc. (GOOG) stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.GOOG is at $167.27, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” I argued that GOOG was worth at least $193 per share based on its strong free cash flow (FCF) and FCF margins. GOOG - Barchart - As of Oct. 15, 2024Moreover, I showed that shorting out-of-the-money (OTM) puts was one way to play this. This play also works today. First, let's look at the price targets.Price Target UpdateHere is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month (LTM) FCF margin, Alphabet could generate $71.593 billion in 2025.That implies that its valuation could be substantially higher. For example, using a 3.0% FCF yield metric, its historical valuation, the stock could end up with a market cap of $2.386 trillion (i.e., $71.593b/0.03 = $2,386 billion).That represents a potential 16.3% rise in GOOG's market value of $2.052 trillion today. So, GOOG stock is worth $194.53 per share (i.e., 1.163 x $167.27 today).That is close to what other analysts have as their price targets. For example, AnaChart reports that 43 analysts have an average price target of $193.57. In fact, these same analysts upgraded their prior average of $173.90 as I noted in my prior article.The bottom line is that GOOG stock still looks cheap here. One way to play this is to both own the stock and also short out-of-the-money puts.Shorting OTM PutsFor example, look at the Nov. 8 put option expiry chain - a little over three weeks from today (24 days). It shows that the $155.00 strike price, which is over 7.4% below today's trading price, has a price of $1.74 in the midprice.That represents an immediate short-put play yield of 1.12% (i.e., $1.74/155.00). GOOG Puts - expiring Nov 8 - Barchart - As of Oct. 15, 2024That means that an investor who secures $15,500 in cash or buying power with their brokerage firm can enter a trade to “Sell to Open” 1 put contract at $155.00 for expiry on Nov. 8. The account will then immediately receive $174 if the midprice is obtained.So, as long as GOOG stays over $155.00 for the next 24 days, the account will not be assigned to buy 100 shares at $155.00. Moreover, even if that happens, the investor's breakeven price is $155.00-$1.74, or $153.26. That is 8.37% below today's trading price.In other words, it provides a good yield - 1.1% for the next 3 weeks  - with over 8.3% downside protection. That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stock as well as additional income. The worst that can happen is that they buy more shares.One interesting point to note here is that the delta is about 20% - which is ideal for shorting OTM puts. That implies that for every $1.00 move in the underlying stock, the put will move 20 cents. In other words, if the stock falls $10, the put will rise by $2.00. But in this case, the option is over $12 out-of-the-money (OTM), so there is still a good chance of making money.The bottom line is GOOG stock looks cheap here. One way to play this is to both own GOOG shares and short OTM puts in nearby expiry periods.","news_type":1},"isVote":1,"tweetType":1,"viewCount":38,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":360666908942512,"gmtCreate":1729079356117,"gmtModify":1729079359834,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360666908942512","repostId":"360296743768192","repostType":1,"repost":{"id":360296743768192,"gmtCreate":1728967538286,"gmtModify":1729092001976,"author":{"id":"3572212908677301","authorId":"3572212908677301","name":"TigerOptions","avatar":"https://community-static.tradeup.com/news/20925853481806adc78dcdfe25f2fe89","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3572212908677301","idStr":"3572212908677301"},"themes":[],"title":"Why Palantir Could Retrace Here","htmlText":"As a long-time <a href=\"https://ttm.financial/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a> bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","listText":"As a long-time <a href=\"https://ttm.financial/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a> bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","text":"As a long-time $Palantir Technologies Inc.(PLTR)$ bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","images":[{"img":"https://community-static.tradeup.com/news/1a01babae0e1197404e367227dec22c0","width":"340","height":"567"}],"top":1,"highlighted":2,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360296743768192","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":5,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":8,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":355033658675520,"gmtCreate":1727680224516,"gmtModify":1727680228594,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/355033658675520","repostId":"354178194841856","repostType":1,"repost":{"id":354178194841856,"gmtCreate":1727477376832,"gmtModify":1727484379007,"author":{"id":"4089501973615070","authorId":"4089501973615070","name":"Optionspuppy","avatar":"https://static.tigerbbs.com/caf34258aff8afe478620b82647f1199","crmLevel":6,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"4089501973615070","idStr":"4089501973615070"},"themes":[],"htmlText":"I closed <a href=\"https://ttm.financial/S/IAU\">$iShares Gold Trust(IAU)$&nbsp;</a> ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","listText":"I closed <a href=\"https://ttm.financial/S/IAU\">$iShares Gold Trust(IAU)$&nbsp;</a> ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","text":"I closed $iShares Gold Trust(IAU)$ ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/354178194841856","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":65,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350941521244416,"gmtCreate":1726704661702,"gmtModify":1726704663735,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350941521244416","repostId":"1148881853","repostType":2,"repost":{"id":"1148881853","pubTimestamp":1726619369,"share":"https://ttm.financial/m/news/1148881853?lang=&edition=fundamental","pubTime":"2024-09-18 08:29","market":"us","language":"en","title":"All About Nvidia Chips, AI Hype and What Lies Ahead","url":"https://stock-news.laohu8.com/highlight/detail?id=1148881853","media":"Bloomberg","summary":"The current moneymaker is the Hopper H100, whose name is a nod to computer science pioneer Grace Hopper. It’s a beefier version of a graphics processing unit that normally lives in personal computers and helps video gamers get the most realistic visual experience. But it’s being replaced at the top of the lineup with the Blackwell range .Both Hopper and Blackwell include technology that turns clusters of Nvidia chips into single units that can process vast volumes of data and make computations a","content":"<html><head></head><body><p>The blistering stock rally that’s made Nvidia Corp. one of the world’s three most valuable companies is based on a number of assumptions. One is that artificial intelligence applications made possible by its semiconductors will become features of the modern economy. Another is that Nvidia, and the patchwork of subcontractors upon which it relies, can meet the exploding demand for its equipment without a hitch.</p><p style=\"text-align: start;\">The excitement surrounding AI has ebbed and flowed, but Nvidia remains the preeminent picks-and-shovels seller in an artificial intelligence gold rush. Revenue is still soaring, and the order book for the company’s Hopper chip lineup and its successor — Blackwell — is bulging.</p><p style=\"text-align: start;\">However, its continued success hinges on whether Microsoft Corp., Google and other tech firms will find enough commercial uses for AI to turn a profit on their massive investments in Nvidia chips. Meanwhile, antitrust authorities have zeroed in on Nvidia’s market dominance and are looking into whether it has been making it harder for customers to switch to other suppliers, Bloomberg has reported.</p><p style=\"text-align: start;\">Nvidia shares suffered their worst one-day decline in four weeks on Aug. 29 after it issued an underwhelming sales forecast. The company also confirmed earlier reports that Blackwell designs had required changes to make them easier to manufacture.</p><p style=\"text-align: start;\">The stock has since bounced back from its August low. And the company’s revenue will more than double this year, according to estimates, repeating a similar surge in 2023. Barring a currently unforeseen share collapse, Nvidia will end the year as the world’s most valuable chipmaker, by a wide margin.</p><p style=\"text-align: start;\">Here’s what’s driving the company’s spectacular growth, and more on the challenges that lie ahead.</p><h3 id=\"id_1031615070\" style=\"text-align: start;\">What are Nvidia’s most popular AI chips?</h3><p style=\"text-align: start;\">The current moneymaker is the Hopper H100, whose name is a nod to computer science pioneer Grace Hopper. It’s a beefier version of a graphics processing unit that normally lives in personal computers and helps video gamers get the most realistic visual experience. But it’s being replaced at the top of the lineup with the Blackwell range (named for mathematician David Blackwell).</p><p style=\"text-align: start;\">Both Hopper and Blackwell include technology that turns clusters of Nvidia chips into single units that can process vast volumes of data and make computations at high speeds. That makes them a perfect fit for the power-intensive task of training the neural networks that underpin the latest generation of AI products.</p><p style=\"text-align: start;\">The company, founded in 1993, pioneered this market with investments dating back almost two decades, when it bet that the ability to do work in parallel would one day make its chips valuable in applications outside of gaming.</p><p style=\"text-align: start;\">The Santa Clara, California-based company will sell the Blackwell in a variety of options, including as part of the GB200 superchip, which combines two Blackwell GPUs, or graphics processing units, with one Grace CPU, a general-purpose central processing unit.</p><h3 id=\"id_1780403871\" style=\"text-align: start;\">Why are Nvidia’s AI chips so special?</h3><p style=\"text-align: start;\">So-called generative AI platforms learn tasks such as translating text, summarizing reports and synthesizing images by ingesting vast quantities of preexisting material. The more they see, the better they become at things like recognizing human speech or writing job cover letters. They develop through trial and error, making billions of attempts to achieve proficiency and sucking up huge amounts of computing power along the way.</p><p style=\"text-align: start;\">Blackwell delivers 2.5 times Hopper’s performance in training AI, according to Nvidia. The new design has so many transistors — the tiny switches that give semiconductors their ability to process information — that it’s too big for conventional production techniques. It’s actually two chips married to each other through a connection that ensures they act seamlessly as one, the company said.</p><p style=\"text-align: start;\">For customers racing to train their AI platforms to perform new tasks, the performance edge offered by the Hopper and Blackwell chips is critical. The components are seen as so key to developing AI that the US government has restricted their sale to China.</p><h3 id=\"id_322594952\" style=\"text-align: start;\">How did Nvidia become a leader in AI?</h3><p style=\"text-align: start;\">The Santa Clara, California-based company was already the king of graphics chips, the bits of a computer that generate the images you see on the screen. The most powerful of those are built with thousands of processing cores that perform multiple simultaneous threads of computation, modeling complex 3D renderings like shadows and reflections.</p><p style=\"text-align: start;\">Nvidia’s engineers realized in the early 2000s that they could retool these graphics accelerators for other applications. AI researchers, meanwhile, discovered that their work could finally be made practical by using this type of chip.</p><h3 id=\"id_747874475\" style=\"text-align: start;\">What are Nvidia’s competitors doing?</h3><p style=\"text-align: start;\">Nvidia now controls about 90% of the market for data center GPUs, according to market research firm IDC. Dominant cloud computing providers such as Amazon.com Inc.’s AWS, Alphabet Inc.’s Google Cloud and Microsoft’s Azure are trying to develop their own chips, as are Nvidia rivals Advanced Micro Devices Inc. and Intel Corp.</p><p style=\"text-align: start;\">Those efforts have done little to erode Nvidia’s dominance for now. AMD is forecasting as much as $4.5 billion in AI accelerator-related sales for this year. That’s a remarkable growth spurt from next to nothing in 2023, but still pales in comparison with the more than $100 billion Nvidia will make in data center sales this year, according to analyst estimates.</p><h3 id=\"id_767662116\" style=\"text-align: start;\">How does Nvidia stay ahead of its competitors?</h3><p style=\"text-align: start;\">Nvidia has updated its offerings, including software to support the hardware, at a pace that no other firm has yet been able to match. The company has also devised various cluster systems that help its customers buy H100s in bulk and deploy them quickly. Chips like Intel’s Xeon processors are capable of more complex data crunching, but they have fewer cores and are slower at working through the mountains of information typically used to train AI software. The once-dominant provider of data center components has struggled so far to offer accelerators that customers are prepared to choose over Nvidia fare.</p><h3 id=\"id_3590602157\" style=\"text-align: start;\">How is AI chip demand holding up?</h3><p style=\"text-align: start;\">Nvidia Chief Executive Officer Jensen Huang has said customers are frustrated they can’t get enough chips. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he said at a Goldman Sachs Group Inc. technology conference in San Francisco on Sept. 11. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.”</p><p style=\"text-align: start;\">Demand for current products is strong and orders for the new Blackwell range are flowing in as supply improves, Huang said. Asked whether the massive AI spending is providing customers with a return on investment, he said companies have no choice other than to embrace “accelerated computing.”</p><h3 id=\"id_2152678134\" style=\"text-align: start;\">Why is Nvidia being investigated?</h3><p style=\"text-align: start;\">Nvidia’s growing dominance has become a concern for industry regulators. The US Justice Department sent subpoenas to Nvidia and other companies as it seeks evidence that the chipmaker violated antitrust laws, escalating an existing investigation, Bloomberg reported on Sept. 3. Nvidia subsequently denied that it had a subpoena, but the DOJ often sends requests for information in the form of what’s known as a civil investigative demand, which is commonly referred to as a subpoena. The Department of Justice has sent such a request seeking information about Nvidia’s acquisition of RunAI and aspects of its chip business, according to one person with direct knowledge of the matter. Nvidia has said its dominance of the AI accelerator market comes from the superiority of its products and that customers are free to choose.</p><h3 id=\"id_1134525483\" style=\"text-align: start;\">How do AMD and Intel compare with Nvidia in AI chips?</h3><p style=\"text-align: start;\">AMD, the second-largest maker of computer graphics chips, unveiled a version of its Instinct line last year aimed at the market that Nvidia’s products dominate. At the Computex show in Taiwan in early June, AMD CEO Lisa Su announced that an updated version of its MI300 AI processor would go on sale in the fourth quarter and outlined that further products will follow in 2025 and 2026, showing her company’s commitment to this business area. AMD and Intel, which is also designing chips geared for AI workloads, have said that their latest products compare favorably to the H100 and even its H200 successor in some scenarios.</p><p style=\"text-align: start;\">But none of Nvidia’s rivals has yet accounted for the leap forward that the company says Blackwell will deliver. Nvidia’s advantage isn’t just in the performance of its hardware. The company invented something called CUDA, a language for its graphics chips that allows them to be programmed for the type of work that underpins AI applications. Widespread use of that software tool has helped keep the industry tied to Nvidia’s hardware.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c1ede4e4522961b32f32bf8ad7eeab5f\" alt=\"Nvidia CEO Jensen Huang News Conference\" title=\"Nvidia CEO Jensen Huang News Conference\" tg-width=\"2000\" tg-height=\"1334\"/><span>Nvidia CEO Jensen Huang News Conference</span></p><h3 id=\"id_1931692897\" style=\"text-align: start;\">What is Nvidia planning on releasing next?</h3><p style=\"text-align: start;\">The most anticipated release is the Blackwell line, and Nvidia has said it expects to get “a lot” of revenue from the new product series this year. However, the company has hit engineering snags in its development that will slow the release of some products.</p><p style=\"text-align: start;\">Meanwhile, demand for the H series hardware continues to grow. Huang has acted as an ambassador for the technology and sought to entice governments, as well as private enterprise, to buy early or risk being left behind by those who embrace AI. Nvidia also knows that once customers choose its technology for their generative AI projects, it will have a much easier time selling them upgrades than competitors.</p></body></html>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>All About Nvidia Chips, AI Hype and What Lies Ahead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAll About Nvidia Chips, AI Hype and What Lies Ahead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-18 08:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2024-09-17/nvidia-h100-and-blackwell-chips-why-the-hype-and-what-happens-next?srnd=homepage-asia><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The blistering stock rally that’s made Nvidia Corp. one of the world’s three most valuable companies is based on a number of assumptions. One is that artificial intelligence applications made possible...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2024-09-17/nvidia-h100-and-blackwell-chips-why-the-hype-and-what-happens-next?srnd=homepage-asia\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NVDA":"英伟达"},"source_url":"https://www.bloomberg.com/news/articles/2024-09-17/nvidia-h100-and-blackwell-chips-why-the-hype-and-what-happens-next?srnd=homepage-asia","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1148881853","content_text":"The blistering stock rally that’s made Nvidia Corp. one of the world’s three most valuable companies is based on a number of assumptions. One is that artificial intelligence applications made possible by its semiconductors will become features of the modern economy. Another is that Nvidia, and the patchwork of subcontractors upon which it relies, can meet the exploding demand for its equipment without a hitch.The excitement surrounding AI has ebbed and flowed, but Nvidia remains the preeminent picks-and-shovels seller in an artificial intelligence gold rush. Revenue is still soaring, and the order book for the company’s Hopper chip lineup and its successor — Blackwell — is bulging.However, its continued success hinges on whether Microsoft Corp., Google and other tech firms will find enough commercial uses for AI to turn a profit on their massive investments in Nvidia chips. Meanwhile, antitrust authorities have zeroed in on Nvidia’s market dominance and are looking into whether it has been making it harder for customers to switch to other suppliers, Bloomberg has reported.Nvidia shares suffered their worst one-day decline in four weeks on Aug. 29 after it issued an underwhelming sales forecast. The company also confirmed earlier reports that Blackwell designs had required changes to make them easier to manufacture.The stock has since bounced back from its August low. And the company’s revenue will more than double this year, according to estimates, repeating a similar surge in 2023. Barring a currently unforeseen share collapse, Nvidia will end the year as the world’s most valuable chipmaker, by a wide margin.Here’s what’s driving the company’s spectacular growth, and more on the challenges that lie ahead.What are Nvidia’s most popular AI chips?The current moneymaker is the Hopper H100, whose name is a nod to computer science pioneer Grace Hopper. It’s a beefier version of a graphics processing unit that normally lives in personal computers and helps video gamers get the most realistic visual experience. But it’s being replaced at the top of the lineup with the Blackwell range (named for mathematician David Blackwell).Both Hopper and Blackwell include technology that turns clusters of Nvidia chips into single units that can process vast volumes of data and make computations at high speeds. That makes them a perfect fit for the power-intensive task of training the neural networks that underpin the latest generation of AI products.The company, founded in 1993, pioneered this market with investments dating back almost two decades, when it bet that the ability to do work in parallel would one day make its chips valuable in applications outside of gaming.The Santa Clara, California-based company will sell the Blackwell in a variety of options, including as part of the GB200 superchip, which combines two Blackwell GPUs, or graphics processing units, with one Grace CPU, a general-purpose central processing unit.Why are Nvidia’s AI chips so special?So-called generative AI platforms learn tasks such as translating text, summarizing reports and synthesizing images by ingesting vast quantities of preexisting material. The more they see, the better they become at things like recognizing human speech or writing job cover letters. They develop through trial and error, making billions of attempts to achieve proficiency and sucking up huge amounts of computing power along the way.Blackwell delivers 2.5 times Hopper’s performance in training AI, according to Nvidia. The new design has so many transistors — the tiny switches that give semiconductors their ability to process information — that it’s too big for conventional production techniques. It’s actually two chips married to each other through a connection that ensures they act seamlessly as one, the company said.For customers racing to train their AI platforms to perform new tasks, the performance edge offered by the Hopper and Blackwell chips is critical. The components are seen as so key to developing AI that the US government has restricted their sale to China.How did Nvidia become a leader in AI?The Santa Clara, California-based company was already the king of graphics chips, the bits of a computer that generate the images you see on the screen. The most powerful of those are built with thousands of processing cores that perform multiple simultaneous threads of computation, modeling complex 3D renderings like shadows and reflections.Nvidia’s engineers realized in the early 2000s that they could retool these graphics accelerators for other applications. AI researchers, meanwhile, discovered that their work could finally be made practical by using this type of chip.What are Nvidia’s competitors doing?Nvidia now controls about 90% of the market for data center GPUs, according to market research firm IDC. Dominant cloud computing providers such as Amazon.com Inc.’s AWS, Alphabet Inc.’s Google Cloud and Microsoft’s Azure are trying to develop their own chips, as are Nvidia rivals Advanced Micro Devices Inc. and Intel Corp.Those efforts have done little to erode Nvidia’s dominance for now. AMD is forecasting as much as $4.5 billion in AI accelerator-related sales for this year. That’s a remarkable growth spurt from next to nothing in 2023, but still pales in comparison with the more than $100 billion Nvidia will make in data center sales this year, according to analyst estimates.How does Nvidia stay ahead of its competitors?Nvidia has updated its offerings, including software to support the hardware, at a pace that no other firm has yet been able to match. The company has also devised various cluster systems that help its customers buy H100s in bulk and deploy them quickly. Chips like Intel’s Xeon processors are capable of more complex data crunching, but they have fewer cores and are slower at working through the mountains of information typically used to train AI software. The once-dominant provider of data center components has struggled so far to offer accelerators that customers are prepared to choose over Nvidia fare.How is AI chip demand holding up?Nvidia Chief Executive Officer Jensen Huang has said customers are frustrated they can’t get enough chips. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he said at a Goldman Sachs Group Inc. technology conference in San Francisco on Sept. 11. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.”Demand for current products is strong and orders for the new Blackwell range are flowing in as supply improves, Huang said. Asked whether the massive AI spending is providing customers with a return on investment, he said companies have no choice other than to embrace “accelerated computing.”Why is Nvidia being investigated?Nvidia’s growing dominance has become a concern for industry regulators. The US Justice Department sent subpoenas to Nvidia and other companies as it seeks evidence that the chipmaker violated antitrust laws, escalating an existing investigation, Bloomberg reported on Sept. 3. Nvidia subsequently denied that it had a subpoena, but the DOJ often sends requests for information in the form of what’s known as a civil investigative demand, which is commonly referred to as a subpoena. The Department of Justice has sent such a request seeking information about Nvidia’s acquisition of RunAI and aspects of its chip business, according to one person with direct knowledge of the matter. Nvidia has said its dominance of the AI accelerator market comes from the superiority of its products and that customers are free to choose.How do AMD and Intel compare with Nvidia in AI chips?AMD, the second-largest maker of computer graphics chips, unveiled a version of its Instinct line last year aimed at the market that Nvidia’s products dominate. At the Computex show in Taiwan in early June, AMD CEO Lisa Su announced that an updated version of its MI300 AI processor would go on sale in the fourth quarter and outlined that further products will follow in 2025 and 2026, showing her company’s commitment to this business area. AMD and Intel, which is also designing chips geared for AI workloads, have said that their latest products compare favorably to the H100 and even its H200 successor in some scenarios.But none of Nvidia’s rivals has yet accounted for the leap forward that the company says Blackwell will deliver. Nvidia’s advantage isn’t just in the performance of its hardware. The company invented something called CUDA, a language for its graphics chips that allows them to be programmed for the type of work that underpins AI applications. Widespread use of that software tool has helped keep the industry tied to Nvidia’s hardware.Nvidia CEO Jensen Huang News ConferenceWhat is Nvidia planning on releasing next?The most anticipated release is the Blackwell line, and Nvidia has said it expects to get “a lot” of revenue from the new product series this year. However, the company has hit engineering snags in its development that will slow the release of some products.Meanwhile, demand for the H series hardware continues to grow. Huang has acted as an ambassador for the technology and sought to entice governments, as well as private enterprise, to buy early or risk being left behind by those who embrace AI. Nvidia also knows that once customers choose its technology for their generative AI projects, it will have a much easier time selling them upgrades than competitors.","news_type":1},"isVote":1,"tweetType":1,"viewCount":19,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350940955988200,"gmtCreate":1726704502233,"gmtModify":1726704504202,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350940955988200","repostId":"2468535026","repostType":2,"isVote":1,"tweetType":1,"viewCount":14,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350938378563584,"gmtCreate":1726703786659,"gmtModify":1726703788561,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350938378563584","repostId":"1170222350","repostType":2,"repost":{"id":"1170222350","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings","home_visible":1,"media_name":"TigerNews SG","id":"1050470178","head_image":"https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709"},"pubTimestamp":1726621488,"share":"https://ttm.financial/m/news/1170222350?lang=&edition=fundamental","pubTime":"2024-09-18 09:04","market":"sg","language":"en","title":"SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy","url":"https://stock-news.laohu8.com/highlight/detail?id=1170222350","media":"TigerNews SG","summary":"Market SnapshotSingapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.Stocks to WatchSembcorp: The group’s subsidiary Sembcorp ","content":"<html><head></head><body><h2 id=\"id_2780928662\">Market Snapshot</h2><p>Singapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a750e0eccfc023557d8031d958a978b3\" tg-width=\"281\" tg-height=\"751\"/></p><h2 id=\"id_3813175564\">Stocks to Watch</h2><p><strong>Sembcorp:</strong> The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.</p><p><strong>Lippo Malls Indonesia Retail Trust (LMIRT):</strong> Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.</p><h2 id=\"id_3059161784\">SG Local News</h2><p><strong>Singapore labour market expands in Q2, with growth coming solely from non-residents</strong></p><p>Singapore&#39;s labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).</p><p>This comes as Singapore&#39;s resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.</p><p><strong>Isetan Singapore to delist on Sep 19</strong></p><p>Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).</p><p>Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.</p><p>To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1050470178\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">TigerNews SG </p>\n<p class=\"h-time\">2024-09-18 09:04</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><h2 id=\"id_2780928662\">Market Snapshot</h2><p>Singapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a750e0eccfc023557d8031d958a978b3\" tg-width=\"281\" tg-height=\"751\"/></p><h2 id=\"id_3813175564\">Stocks to Watch</h2><p><strong>Sembcorp:</strong> The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.</p><p><strong>Lippo Malls Indonesia Retail Trust (LMIRT):</strong> Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.</p><h2 id=\"id_3059161784\">SG Local News</h2><p><strong>Singapore labour market expands in Q2, with growth coming solely from non-residents</strong></p><p>Singapore&#39;s labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).</p><p>This comes as Singapore&#39;s resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.</p><p><strong>Isetan Singapore to delist on Sep 19</strong></p><p>Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).</p><p>Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.</p><p>To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"U96.SI":"胜科工业","STI.SI":"富时新加坡海峡指数","D5IU.SI":"力宝印尼零售信托"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1170222350","content_text":"Market SnapshotSingapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.Stocks to WatchSembcorp: The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.Lippo Malls Indonesia Retail Trust (LMIRT): Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.SG Local NewsSingapore labour market expands in Q2, with growth coming solely from non-residentsSingapore's labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).This comes as Singapore's resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.Isetan Singapore to delist on Sep 19Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.","news_type":1},"isVote":1,"tweetType":1,"viewCount":50,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350871399379000,"gmtCreate":1726703718557,"gmtModify":1726703720440,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350871399379000","repostId":"1129871803","repostType":2,"repost":{"id":"1129871803","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1726624576,"share":"https://ttm.financial/m/news/1129871803?lang=&edition=fundamental","pubTime":"2024-09-18 09:56","market":"us","language":"en","title":"24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%","url":"https://stock-news.laohu8.com/highlight/detail?id=1129871803","media":"Tiger Newspress","summary":"$Intuitive Machines$ said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.Power infrastructure developer $VivoPower$ said on Tuesday it has signed a non-binding agreement to merge with Canada's Future Automotive Solutions and Technologies , which would create a $1.13 billion combined co","content":"<html><head></head><body><p><strong><a href=\"https://laohu8.com/S/LUNR\">Intuitive Machines</a></strong> said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.</p><p>Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed12f628a0373c18ee815f692a946cd\" tg-width=\"882\" tg-height=\"626\"/></p><p>Power infrastructure developer <strong><a href=\"https://laohu8.com/S/VVPR\">VivoPower</a></strong> said on Tuesday it has signed a non-binding agreement to merge with Canada&#39;s Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.</p><p>VivoPower shares surged 29% in overnight trading.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aecf9097811ff6d31f152f40b6a9fc12\" tg-width=\"878\" tg-height=\"624\"/></p><p><strong><a href=\"https://laohu8.com/S/X\">U.S. Steel</a></strong> shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b2e6ff7e333137a943f2dc1f71386a4a\" tg-width=\"882\" tg-height=\"625\"/></p><h2 id=\"id_1428670322\">TOP10 gainers in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7999c0f06067584cf9b680b435a4114b\" tg-width=\"1279\" tg-height=\"2171\"/></p><h2 id=\"id_2329928591\">TOP10 decliners in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0b241c2145aef013ea630dd4559e95f\" tg-width=\"1279\" tg-height=\"2185\"/></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-09-18 09:56</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><strong><a href=\"https://laohu8.com/S/LUNR\">Intuitive Machines</a></strong> said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.</p><p>Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed12f628a0373c18ee815f692a946cd\" tg-width=\"882\" tg-height=\"626\"/></p><p>Power infrastructure developer <strong><a href=\"https://laohu8.com/S/VVPR\">VivoPower</a></strong> said on Tuesday it has signed a non-binding agreement to merge with Canada&#39;s Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.</p><p>VivoPower shares surged 29% in overnight trading.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aecf9097811ff6d31f152f40b6a9fc12\" tg-width=\"878\" tg-height=\"624\"/></p><p><strong><a href=\"https://laohu8.com/S/X\">U.S. Steel</a></strong> shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b2e6ff7e333137a943f2dc1f71386a4a\" tg-width=\"882\" tg-height=\"625\"/></p><h2 id=\"id_1428670322\">TOP10 gainers in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7999c0f06067584cf9b680b435a4114b\" tg-width=\"1279\" tg-height=\"2171\"/></p><h2 id=\"id_2329928591\">TOP10 decliners in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0b241c2145aef013ea630dd4559e95f\" tg-width=\"1279\" tg-height=\"2185\"/></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"VVPR":"VivoPower","LUNR":"Intuitive Machines","X":"美国钢铁"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129871803","content_text":"Intuitive Machines said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.Power infrastructure developer VivoPower said on Tuesday it has signed a non-binding agreement to merge with Canada's Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.VivoPower shares surged 29% in overnight trading.U.S. Steel shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.TOP10 gainers in overnight trading:TOP10 decliners in overnight trading:","news_type":1},"isVote":1,"tweetType":1,"viewCount":84,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350936778137800,"gmtCreate":1726703482722,"gmtModify":1726703484642,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350936778137800","repostId":"2468655392","repostType":2,"isVote":1,"tweetType":1,"viewCount":27,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350936241569992,"gmtCreate":1726703351724,"gmtModify":1726703355211,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350936241569992","repostId":"2468311042","repostType":2,"repost":{"id":"2468311042","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1726630890,"share":"https://ttm.financial/m/news/2468311042?lang=&edition=fundamental","pubTime":"2024-09-18 11:41","market":"fut","language":"en","title":"Gold Is Giving You a Once-in-A-Generation Buying Opportunity on Its Way to 4,400","url":"https://stock-news.laohu8.com/highlight/detail?id=2468311042","media":"Dow Jones","summary":"Now that gold prices  are reaching new highs, is there still a buying opportunity - or is this a bull trap?Let's begin with the reasons for caution. Conventional drivers of gold prices have lagged the yellow metal and are forming negative divergences that warn of excessive frothiness. Should investors be worried about these technical warnings of possible weakness?","content":"<html><head></head><body><p>Now that gold prices (GC00) are reaching new highs, is there still a buying opportunity - or is this a bull trap?</p><p>Let&#39;s begin with the reasons for caution. Conventional drivers of gold prices have lagged the yellow metal and are forming negative divergences that warn of excessive frothiness. Should investors be worried about these technical warnings of possible weakness?</p><p>Gold traditionally has moved opposite to the U.S. dollar <a href=\"https://laohu8.com/S/USD\">$(USD)$</a> (DX00). But the dollar&#39;s recent weakness doesn&#39;t explain why gold is at an all-time high. Gold is also considered a hedge against inflation, yet inflation-linked U.S. Treasury bonds, or TIPS, have been weaker as gold prices have advanced. A similar pattern can be seen in the ProShares Inflation Expectations ETF RINF, which is linked to the price of the FTSE 30-year TIPS Index.</p><p>The bull case can be summarized this way: Even as the conventional factors affecting gold prices have stumbled, other factors have emerged to support demand.</p><p>In particular, gold prices have soared because central banks have been buying to hedge against geopolitical risk and uncertainty. The most prominent buyers of gold have been Russia and China, in an effort to diversify away from dollar-based assets in case their conflict with the U.S. escalates. Chinese households have also been buying gold. Reuters reported that Chinese buyers are back after a brief two-month hiatus.</p><p>In addition, the conventional drivers of gold are also turning up. Central banks are cutting rates as inflation falls. This has the effect of reducing real rates, which is supportive of higher gold prices.</p><h2 id=\"id_2337189212\">Too frothy?</h2><p>Western investors have returned to gold, as evidenced by activity in the SPDR Gold Shares ETF GLD. This can be judged bullishly as either as the start of a momentum stampede or in a contrarian bearish fashion as the unsophisticated retail money piling in.</p><p>There is no question that gold prices have gone too far, too fast. As SentimenTrader observed in late August: &#34;It&#39;s rare to see sentiment toward gold more optimistic than other major markets. April 2020 is the only time in the past decade when sentiment toward gold was higher than that toward stocks, bonds, and crude oil.&#34;</p><p>On the other hand, my analysis of gold sentiment takes a more nuanced view. The bears will argue that gold mining stocks - using VanEck Gold Miners ETF GDX as a proxy - is overbought and a sign of a frothy market. The bulls will counter that the gold-miner-to-gold ratio is only in the middle of its three-year range. More importantly, junior gold mining stocks - represented by the VanEck Junior Gold Miners ETF GDXJ - are near the bottom of their range against the senior miners, which is hardly a sign of excessive speculation.</p><p>Here is my view. My gold-chart analysis indicates a measured objective of $2,826 per ounce, which is a rough indication of gold&#39;s potential value over a 12-to-18 month time frame. On a multi-year time frame, the charts point to a measured objective of $4,406 per ounce. Which means that the upside breakout in gold prices has more room to run, though the market currently is extended and could pull back at any time.</p><p>Cam Hui writes the investment blog Humble Student of the Markets, where this article first appeared. He is a former equity portfolio manager and sell-side analyst.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gold Is Giving You a Once-in-A-Generation Buying Opportunity on Its Way to 4,400</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGold Is Giving You a Once-in-A-Generation Buying Opportunity on Its Way to 4,400\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-09-18 11:41</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Now that gold prices (GC00) are reaching new highs, is there still a buying opportunity - or is this a bull trap?</p><p>Let&#39;s begin with the reasons for caution. Conventional drivers of gold prices have lagged the yellow metal and are forming negative divergences that warn of excessive frothiness. Should investors be worried about these technical warnings of possible weakness?</p><p>Gold traditionally has moved opposite to the U.S. dollar <a href=\"https://laohu8.com/S/USD\">$(USD)$</a> (DX00). But the dollar&#39;s recent weakness doesn&#39;t explain why gold is at an all-time high. Gold is also considered a hedge against inflation, yet inflation-linked U.S. Treasury bonds, or TIPS, have been weaker as gold prices have advanced. A similar pattern can be seen in the ProShares Inflation Expectations ETF RINF, which is linked to the price of the FTSE 30-year TIPS Index.</p><p>The bull case can be summarized this way: Even as the conventional factors affecting gold prices have stumbled, other factors have emerged to support demand.</p><p>In particular, gold prices have soared because central banks have been buying to hedge against geopolitical risk and uncertainty. The most prominent buyers of gold have been Russia and China, in an effort to diversify away from dollar-based assets in case their conflict with the U.S. escalates. Chinese households have also been buying gold. Reuters reported that Chinese buyers are back after a brief two-month hiatus.</p><p>In addition, the conventional drivers of gold are also turning up. Central banks are cutting rates as inflation falls. This has the effect of reducing real rates, which is supportive of higher gold prices.</p><h2 id=\"id_2337189212\">Too frothy?</h2><p>Western investors have returned to gold, as evidenced by activity in the SPDR Gold Shares ETF GLD. This can be judged bullishly as either as the start of a momentum stampede or in a contrarian bearish fashion as the unsophisticated retail money piling in.</p><p>There is no question that gold prices have gone too far, too fast. As SentimenTrader observed in late August: &#34;It&#39;s rare to see sentiment toward gold more optimistic than other major markets. April 2020 is the only time in the past decade when sentiment toward gold was higher than that toward stocks, bonds, and crude oil.&#34;</p><p>On the other hand, my analysis of gold sentiment takes a more nuanced view. The bears will argue that gold mining stocks - using VanEck Gold Miners ETF GDX as a proxy - is overbought and a sign of a frothy market. The bulls will counter that the gold-miner-to-gold ratio is only in the middle of its three-year range. More importantly, junior gold mining stocks - represented by the VanEck Junior Gold Miners ETF GDXJ - are near the bottom of their range against the senior miners, which is hardly a sign of excessive speculation.</p><p>Here is my view. My gold-chart analysis indicates a measured objective of $2,826 per ounce, which is a rough indication of gold&#39;s potential value over a 12-to-18 month time frame. On a multi-year time frame, the charts point to a measured objective of $4,406 per ounce. Which means that the upside breakout in gold prices has more room to run, though the market currently is extended and could pull back at any time.</p><p>Cam Hui writes the investment blog Humble Student of the Markets, where this article first appeared. He is a former equity portfolio manager and sell-side analyst.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4588":"碎股","BK4550":"红杉资本持仓","BK4585":"ETF&股票定投概念"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2468311042","content_text":"Now that gold prices (GC00) are reaching new highs, is there still a buying opportunity - or is this a bull trap?Let's begin with the reasons for caution. Conventional drivers of gold prices have lagged the yellow metal and are forming negative divergences that warn of excessive frothiness. Should investors be worried about these technical warnings of possible weakness?Gold traditionally has moved opposite to the U.S. dollar $(USD)$ (DX00). But the dollar's recent weakness doesn't explain why gold is at an all-time high. Gold is also considered a hedge against inflation, yet inflation-linked U.S. Treasury bonds, or TIPS, have been weaker as gold prices have advanced. A similar pattern can be seen in the ProShares Inflation Expectations ETF RINF, which is linked to the price of the FTSE 30-year TIPS Index.The bull case can be summarized this way: Even as the conventional factors affecting gold prices have stumbled, other factors have emerged to support demand.In particular, gold prices have soared because central banks have been buying to hedge against geopolitical risk and uncertainty. The most prominent buyers of gold have been Russia and China, in an effort to diversify away from dollar-based assets in case their conflict with the U.S. escalates. Chinese households have also been buying gold. Reuters reported that Chinese buyers are back after a brief two-month hiatus.In addition, the conventional drivers of gold are also turning up. Central banks are cutting rates as inflation falls. This has the effect of reducing real rates, which is supportive of higher gold prices.Too frothy?Western investors have returned to gold, as evidenced by activity in the SPDR Gold Shares ETF GLD. This can be judged bullishly as either as the start of a momentum stampede or in a contrarian bearish fashion as the unsophisticated retail money piling in.There is no question that gold prices have gone too far, too fast. As SentimenTrader observed in late August: \"It's rare to see sentiment toward gold more optimistic than other major markets. April 2020 is the only time in the past decade when sentiment toward gold was higher than that toward stocks, bonds, and crude oil.\"On the other hand, my analysis of gold sentiment takes a more nuanced view. The bears will argue that gold mining stocks - using VanEck Gold Miners ETF GDX as a proxy - is overbought and a sign of a frothy market. The bulls will counter that the gold-miner-to-gold ratio is only in the middle of its three-year range. More importantly, junior gold mining stocks - represented by the VanEck Junior Gold Miners ETF GDXJ - are near the bottom of their range against the senior miners, which is hardly a sign of excessive speculation.Here is my view. My gold-chart analysis indicates a measured objective of $2,826 per ounce, which is a rough indication of gold's potential value over a 12-to-18 month time frame. On a multi-year time frame, the charts point to a measured objective of $4,406 per ounce. Which means that the upside breakout in gold prices has more room to run, though the market currently is extended and could pull back at any time.Cam Hui writes the investment blog Humble Student of the Markets, where this article first appeared. He is a former equity portfolio manager and sell-side analyst.","news_type":1},"isVote":1,"tweetType":1,"viewCount":26,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":345056642085136,"gmtCreate":1725270428520,"gmtModify":1725270430900,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345056642085136","repostId":"2463708574","repostType":2,"isVote":1,"tweetType":1,"viewCount":111,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344426342248736,"gmtCreate":1725081238489,"gmtModify":1725081242167,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344426342248736","repostId":"2463986757","repostType":2,"repost":{"id":"2463986757","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1725067421,"share":"https://ttm.financial/m/news/2463986757?lang=&edition=fundamental","pubTime":"2024-08-31 09:23","market":"us","language":"en","title":"Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?","url":"https://stock-news.laohu8.com/highlight/detail?id=2463986757","media":"Dow Jones","summary":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $$ bought back nearly $15 billion in stock during the first half of its fiscal year, ","content":"<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-08-31 09:23</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4571":"数字音乐概念","BK4507":"流媒体概念","BK4576":"AR","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4575":"芯片概念","BK4566":"资本集团","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","BK4525":"远程办公概念","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","BK4524":"宅经济概念","BK4527":"明星科技股","BK4501":"段永平概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","LU0109392836.USD":"富兰克林科技股A","BK4503":"景林资产持仓","NVDA":"英伟达","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4551":"寇图资本持仓","BK4574":"无人驾驶","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4573":"虚拟现实","BK4561":"索罗斯持仓","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4505":"高瓴资本持仓","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4581":"高盛持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0215105999.USD":"SCHRODER ISF GLOBAL EQUITY \"A\" ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0971096721.USD":"富达环球金融服务 A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4529":"IDC概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463986757","content_text":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $(NVDA)$ bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.But is the upsized program a good signal for investors? There's some debate among analysts.When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.\"When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,\" S&P Visible Alpha TMT analyst Melissa Otto told MarketWatch.She likened Nvidia's move to ones made by Alphabet Inc. $(GOOG)$ $(GOOGL)$, which has announced $70 billion in buyback authorizations in recent years.\"They're two different companies, with two different business models, but they do play in the technology universe,\" she said. And given the big growth in both businesses, \"shareholders will start to ask questions about the law of big numbers,\" or how much more growth potential is out there for companies this large.In that sense, \"it's always good to see that a company acknowledges that it's doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,\" Otto added.Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a \"terrific platform\" but executives may have realized that it's time to \"think about...shareholders in a different way.\"Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research's Ben Reitzes noted that \"if shares fall,\" Nvidia now has \"a big buyback lever.\"Prior to Nvidia's report, he estimated that the company could churn out $270 billion in free cash flow within three years. \"Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,\" he wrote earlier in August.Nvidia's buyback announcement ties with Meta Platforms Inc.'s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. $(AAPL)$ ($110 billion) and Alphabet have unveiled bigger ones.Looking beyond the year, Nvidia's announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.The buyback authorization is 1.7% the size of Nvidia's market capitalization, which is about $2.91 trillion.StoneX senior strategist James Stanley noted that the buyback program wasn't enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.Stanley doesn't fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan \"just makes sense\" for the Nvidia CEO.\"But it also sounds a little bit different when you're using treasury funds to buy that same stock at or near all-time highs,\" he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.While some analysts see Nvidia's stock as cheap, Stanley thinks it's \"richly valued\" trading at a multiple of 37 times price to sales as of Thursday.At the same time, Stanley can see why Nvidia isn't pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company's artificial-intelligence hardware.\"We have a recent cautionary tale with Tesla,\" which \"essentially overbuilt with capacity.\" Tesla has now \" found themselves in this Catch-22 where if they cut production, they're also going to be taking hit on margins, because they have so much capacity,\" he said.In his view, it's \"almost justifiable\" for Nvidia to \"lean towards more demand than oversupply.\"In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. \"We assume most future deals will be rather small,\" he wrote.","news_type":1},"isVote":1,"tweetType":1,"viewCount":93,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410751127576,"gmtCreate":1725077526430,"gmtModify":1725077528325,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410751127576","repostId":"2463986757","repostType":2,"repost":{"id":"2463986757","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1725067421,"share":"https://ttm.financial/m/news/2463986757?lang=&edition=fundamental","pubTime":"2024-08-31 09:23","market":"us","language":"en","title":"Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?","url":"https://stock-news.laohu8.com/highlight/detail?id=2463986757","media":"Dow Jones","summary":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $$ bought back nearly $15 billion in stock during the first half of its fiscal year, ","content":"<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-08-31 09:23</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4571":"数字音乐概念","BK4507":"流媒体概念","BK4576":"AR","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4575":"芯片概念","BK4566":"资本集团","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","BK4525":"远程办公概念","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","BK4524":"宅经济概念","BK4527":"明星科技股","BK4501":"段永平概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","LU0109392836.USD":"富兰克林科技股A","BK4503":"景林资产持仓","NVDA":"英伟达","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4551":"寇图资本持仓","BK4574":"无人驾驶","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4573":"虚拟现实","BK4561":"索罗斯持仓","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4505":"高瓴资本持仓","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4581":"高盛持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0215105999.USD":"SCHRODER ISF GLOBAL EQUITY \"A\" ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0971096721.USD":"富达环球金融服务 A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4529":"IDC概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463986757","content_text":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $(NVDA)$ bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.But is the upsized program a good signal for investors? There's some debate among analysts.When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.\"When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,\" S&P Visible Alpha TMT analyst Melissa Otto told MarketWatch.She likened Nvidia's move to ones made by Alphabet Inc. $(GOOG)$ $(GOOGL)$, which has announced $70 billion in buyback authorizations in recent years.\"They're two different companies, with two different business models, but they do play in the technology universe,\" she said. And given the big growth in both businesses, \"shareholders will start to ask questions about the law of big numbers,\" or how much more growth potential is out there for companies this large.In that sense, \"it's always good to see that a company acknowledges that it's doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,\" Otto added.Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a \"terrific platform\" but executives may have realized that it's time to \"think about...shareholders in a different way.\"Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research's Ben Reitzes noted that \"if shares fall,\" Nvidia now has \"a big buyback lever.\"Prior to Nvidia's report, he estimated that the company could churn out $270 billion in free cash flow within three years. \"Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,\" he wrote earlier in August.Nvidia's buyback announcement ties with Meta Platforms Inc.'s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. $(AAPL)$ ($110 billion) and Alphabet have unveiled bigger ones.Looking beyond the year, Nvidia's announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.The buyback authorization is 1.7% the size of Nvidia's market capitalization, which is about $2.91 trillion.StoneX senior strategist James Stanley noted that the buyback program wasn't enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.Stanley doesn't fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan \"just makes sense\" for the Nvidia CEO.\"But it also sounds a little bit different when you're using treasury funds to buy that same stock at or near all-time highs,\" he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.While some analysts see Nvidia's stock as cheap, Stanley thinks it's \"richly valued\" trading at a multiple of 37 times price to sales as of Thursday.At the same time, Stanley can see why Nvidia isn't pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company's artificial-intelligence hardware.\"We have a recent cautionary tale with Tesla,\" which \"essentially overbuilt with capacity.\" Tesla has now \" found themselves in this Catch-22 where if they cut production, they're also going to be taking hit on margins, because they have so much capacity,\" he said.In his view, it's \"almost justifiable\" for Nvidia to \"lean towards more demand than oversupply.\"In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. \"We assume most future deals will be rather small,\" he wrote.","news_type":1},"isVote":1,"tweetType":1,"viewCount":109,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410751946784,"gmtCreate":1725077430895,"gmtModify":1725077433064,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410751946784","repostId":"2463421513","repostType":2,"repost":{"id":"2463421513","pubTimestamp":1725067525,"share":"https://ttm.financial/m/news/2463421513?lang=&edition=fundamental","pubTime":"2024-08-31 09:25","market":"hk","language":"en","title":"Microsoft's Share Price Is Still Not Justified","url":"https://stock-news.laohu8.com/highlight/detail?id=2463421513","media":"seekingalpha","summary":"Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering ","content":"<html><head></head><body><ul style=\"\"><li><p>Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.</p></li><li><p>Nevertheless, we should not ignore the risk of a potential recession, and considering the high growth rates necessary for Microsoft to be fairly valued, we should be rather cautious.</p></li><li><p>In my opinion, Microsoft remains a &#34;Hold&#34;</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/13e99f9f9438476230d926c211f5d198\" tg-width=\"750\" tg-height=\"563\"/></p><p>NguyenDucQuang/iStock Editorial via Getty Images</p><p></p><p>My last article about Microsoft Corporation (NASDAQ:MSFT) was published in December 2023, a few days before Christmas. And similar to previous articles about Microsoft, I rated the stock as a “Hold”. In the meantime, the stock increased about 11.5% while the S&amp;P 500 (SPY) increased 18.5% in the same timeframe. Hence, Microsoft would have not been the best investment, but it also wasn’t a terrible investment.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/469ab6ca09e9ff0a744523d2497e3d33\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p></p><p>In the last few weeks, Microsoft declined about 15% from its previous all-time high and while some other analysts are arguing this is a buying opportunity, I still think Microsoft is a “Hold” at best and in the following article I will explain why Microsoft is still not a great investment at this point.</p><h2 id=\"id_805714819\">Quarterly Results</h2><p>As usual, we start by looking at the quarterly and full-year results of fiscal 2024, which Microsoft reported on July 30, 2024. Microsoft did once again beat estimates, but only slightly. Revenue was $260 million higher than expectations (compared to $64 billion in quarterly revenue) and earnings per share did beat estimates by $0.02.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/76f39fc461f848f730a2c96e73a679ab\" tg-width=\"640\" tg-height=\"361\"/></p><p>Microsoft Q424 Presentation</p><p></p><p>Similar to the last few quarters and years, Microsoft reported great metrics and high year-over-year growth. Total revenue in Q4/24 was $64,727 million and compared to $56,189 million in Q4/23 this is resulting in 15.2% year-over-year growth. While revenue from products declined from $16,853 million in the same quarter last year to $13,217 million this quarter (resulting in a 21.6% YoY decline), revenue from “Service and other” increased 30.9% YoY from $39,336 million in Q4/23 to $51,510 million in Q4/24. And operating income increased from $24,254 million in the same quarter last year to $27,925 million this quarter – an increase of 15.1% YoY. Finally, diluted earnings per share increased 9.7% YoY from $2.69 in the same quarter last year to $2.95 this quarter.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/69d7a84badb62af5895ea889709db320\" tg-width=\"640\" tg-height=\"488\"/></p><p>Microsoft Q4/24 Earnings Release</p><p></p><p>And the picture for the full-year results is quite similar. Total revenue increased from $211,915 million to $245,122 million and growth was once again driven by “Service and Other” while revenue for “Products” stagnated year-over-year. And while the top line grew 15.7% year-over-year, operating income increased 23.6% YoY from $88,523 million in the same quarter last year to $109,443 million this quarter. Finally, diluted earnings per share increased from $9.68 to $11.80 – 21.9% YoY growth.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91276bd044263791954a17dba94db716\" tg-width=\"635\" tg-height=\"456\"/></p><p>Data by YCharts</p><p></p><p>Looking at the results of only a few quarters is seldom enough for a reasonable picture of a business. However, when looking at the results of the last five years we see some fluctuations for earnings per share and free cash flow, but overall, the company grew with a solid pace and high levels of consistency.</p><p>And while there are some differences in growth rates for the three business segments, all grew in the double digits, with <em>Productivity and Business Processes</em> growing only 11% YoY to $20.3 billion in Q4/24 and <em>Intelligent Cloud</em> increasing 19% YoY to $28.5 billion in revenue. The third business segment, <em>More Personal Computing,</em> was in-between these two with 14% year-over-year growth to $15.9 billion quarterly revenue.</p><h2 id=\"id_2415353957\">New Reporting Structure</h2><p>The above-mentioned quarterly results are still according to the old business structure. Last week, on August 21, 2024, Microsoft reported changes for its reporting segments and investor metric changes. The three major segments remain the same, but several subsegments have been restructured.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/56eeb86b6425a8512e2df5ba75baeb74\" tg-width=\"640\" tg-height=\"359\"/></p><p>Microsoft Fiscal 2025 Investor Metrics</p><p></p><p>Especially the new subsegment “Microsoft 365 commercial products and cloud services” has now several business parts included which were previously part of other segments: <em>Windows Commercial Cloud </em>was previously a part of “More Personal Computing” and <em>EMS &amp; Power BI per-use</em>r was previously a part of “Intelligent Cloud”.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ab003974a1ddf8bd1c6adc3587fc671c\" tg-width=\"640\" tg-height=\"358\"/></p><p>Microsoft Fiscal 2025 Investor Metrics</p><p></p><p>And as a consequence of the new reporting structure, Microsoft also updated its guidance for the first quarter of fiscal 2025. Overall revenue estimates remain the same, but of course, the estimates for the three different segments changed.</p><h2 id=\"id_991689993\">Outlook: Growth, Recession and Moat</h2><p>While Microsoft had its first quarter guidance remain the same, analysts actually lowered expectations for the coming quarters constantly in the last few months. Estimates for revenue were lowered a little bit, and estimates for earnings per share were lowered a little bit more. And the changes are hardly visible in the chart, but I still think it is worth mentioning at this point. In the last three months we saw 27 down revisions for revenue (and not a singe up revision) and in the case of earnings per share, 5 analysts increased EPS estimates while 17 lowered estimates.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/31c5a91065f8de2a4e0462d129b65f23\" tg-width=\"640\" tg-height=\"355\"/></p><p>Microsoft Quarterly EPS Estimates Revisions (Seeking Alpha)</p><p></p><p>On the other hand, we should not ignore that analysts are still extremely optimistic for the years to come. Over the next ten years, analysts are expecting revenue to increase with a CAGR of 11.50% and revenue will increase from about $245 billion right now to almost $730 billion in fiscal 2034. And when looking at estimates for earnings per share, analysts are expecting the bottom line to grow with a CAGR of 12.90% over the next ten years.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5ecb3a025f8c9eadbbecd35af8d3c1d\" tg-width=\"640\" tg-height=\"358\"/></p><p>Microsoft Consensus EPS Estimates (Seeking Alpha)</p><p></p><p>While estimates were slightly lowered for the next few quarters, the core message is that analysts are extremely optimistic for the next few years and expect 12% growth in fiscal 2025, 16% growth in fiscal 2026 and 17% growth in fiscal 2027. But as I have pointed out in several articles in the last few weeks (see for example my article about Simon Property Group (SPG) and Amazon.com (AMZN) as well as Alphabet (GOOG)) I see the United States on its way into a recession. The yield curve, initial claims for unemployment, housing permits, bankruptcies and Sahm Rule are giving us strong warning signals (once again, see previous articles mentioned above).</p><p>And Microsoft certainly has a wide economic moat around its business that will protect the company against competitors and probably lead to stable revenue. But I certainly don’t think Microsoft can continue to grow with a similar pace as in the last few years.</p><p>We can still be very optimistic about the cloud infrastructure market growing with a high pace in the years to come. But we don’t really know how this market will perform during a recession as this market is a rather young market, which did not exist during a previous recession – aside from the 2020 COVID recession (a recession that was different in many ways). We can assume that revenue will be rather stable (or maybe even continue to grow slightly) but I think the following estimates might be too optimistic.</p><p>But as long as we are talking about the cloud business, we should also point out that Microsoft constantly increased its market share. While Amazon remains market leader with a market share slightly above 30%, Microsoft Azure improved its market share from slightly above 15% in 2018 to about 25% right now.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/dec22adeded40551d8cf1a06998ec506\" tg-width=\"640\" tg-height=\"407\"/></p><p>Global Cloud Market Shares (Statista)</p><p></p><p>When combining an overall growing market with Microsoft’s ability to gain market shares, we can be quite optimistic for the future – but maybe not for the next few years.</p><p>While the cloud business is certainly important and one of the drivers of growth, Microsoft is a much more diversified business, and we should not ignore its bread-and-butter business – Windows or Office products for example. And Microsoft is such a great business as almost every business segment has a wide economic moat built around the business. Aside from the brand name, we are especially talking about switching costs. Almost every product is deeply embedded in the personal life or business structure and switching to the products of a competitor is extremely difficult. Retraining the staff of an entire company to use iOS instead of Windows is not only expensive but will impact the everyday working life probably for several weeks. Moving applications and data from one cloud provider to another will also not only take a lot of time, but once again impact everyday working life for many employees. And in case of LinkedIn, the company can rely on strong network effects – only gaming revenue might suffer during a recession as this can be seen as a leisure product and rather cyclical.</p><p>In case of a recession, we can assume that Microsoft won’t be able to gain new customers, or existing customers won’t switch to better and more expensive products, but it might be able to keep its existing customers and keep revenue at least stable. But as we will see in the following section, Microsoft must grow with a very high pace in the next few years to be fairly valued right now.</p><h2 id=\"id_1769483706\">Intrinsic Value Calculation</h2><p>One of the major reasons for me being rather cautious in the last few quarters was the stock price we must pay for Microsoft and the valuation multiples the stock was trading for. And when looking at the valuation multiples right now, the picture did not really improve. At the time of writing, Microsoft is still trading for 35 times earnings as well as 42 times free cash flow. Both metrics are not only above the 10-year average (32.23 for the P/E ratio and 28.01 for the P/FCF ratio) but are high valuation multiples on an absolute basis.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/facb1cebca93973b3f72c2de88b39758\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p></p><p>And as we saw above, Microsoft constantly improved earnings per share and free cash flow in the last few years and therefore the high valuation multiples are not the result of a declining bottom line.</p><p>To get a better picture and maybe more precise intrinsic value for Microsoft, we can use a discount cash flow calculation. As always, we are calculating with a 10% discount rate, as this is the return we like to achieve at least. And we are calculating with the last reported number of outstanding diluted shares (7,472 million). Now we must make some estimates for free cash flow in the next few years and growth rates that are realistic for Microsoft. As a starting point, we can use the free cash flow of the last four quarters, which was $74 billion and instead of making estimates about free cash flow and growth rates, let’s look at the share price from a different perspective. In order to be fairly valued right now, Microsoft must grow free cash flow 18% annually for the next ten years, followed by 4% growth till perpetuity.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/427d47675a94e197fa060753c448e555\" tg-width=\"635\" tg-height=\"486\"/></p><p>Data by YCharts</p><p></p><p>Now, let’s provide a little more context to these numbers. For starters, the free cash flow is the highest it has ever been. And in the case of Microsoft, free cash flow is constantly increasing, but there is some risk we are close to a cycle peak and lower free cash flow in the next few quarters is certainly a possibility.</p><p>Additionally, 18% growth for the next 10 years is very ambitious. When looking at the last 10 years, which have certainly been successful years for Microsoft, earnings per share increased “only” with a CAGR of 16.20% and – as mentioned above – analysts expect earnings per share to grow with a CAGR of 13% in the next ten years. Overall, I would not bet on Microsoft growing 18% annually in the next ten years – especially considering a potential recession and free cash flow already being extremely high. On the other hand, we should point out that free cash flow conversion has been pretty stable in the last few years.</p><p>And finally, we can look at the growth rate until perpetuity. In the past, I often calculated with 6% growth until perpetuity (and I still think it is possible to justify these higher terminal growth rates for high quality businesses). Nevertheless, it also seems reasonable to be a little more cautious and follow the recommendations of the CFI (and others) and use a lower terminal growth rate, but due to the high-quality business, 4% seems certainly reasonable.</p><h2 id=\"id_2737621473\">Conclusion</h2><p>I still see Microsoft as a “Hold” at this point. Microsoft is undoubtedly a great business and probably will be able to perform well even in times of a recession. However, considering the current share price, we can’t see Microsoft as a good investment at this point.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microsoft's Share Price Is Still Not Justified</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrosoft's Share Price Is Still Not Justified\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-31 09:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4592":"伊斯兰概念","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","MSFT":"微软","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0080751232.USD":"富达环球多元动力基金A","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4077":"互动媒体与服务","BK4579":"人工智能","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0203201768.USD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"AX\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","BK4581":"高盛持仓","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE000YTNTUN2.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG)INC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","IE000KEQY171.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) INC","BK4514":"搜索引擎","BK4516":"特朗普概念"},"source_url":"https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2463421513","content_text":"Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering the high growth rates necessary for Microsoft to be fairly valued, we should be rather cautious.In my opinion, Microsoft remains a \"Hold\"NguyenDucQuang/iStock Editorial via Getty ImagesMy last article about Microsoft Corporation (NASDAQ:MSFT) was published in December 2023, a few days before Christmas. And similar to previous articles about Microsoft, I rated the stock as a “Hold”. In the meantime, the stock increased about 11.5% while the S&P 500 (SPY) increased 18.5% in the same timeframe. Hence, Microsoft would have not been the best investment, but it also wasn’t a terrible investment.Data by YChartsIn the last few weeks, Microsoft declined about 15% from its previous all-time high and while some other analysts are arguing this is a buying opportunity, I still think Microsoft is a “Hold” at best and in the following article I will explain why Microsoft is still not a great investment at this point.Quarterly ResultsAs usual, we start by looking at the quarterly and full-year results of fiscal 2024, which Microsoft reported on July 30, 2024. Microsoft did once again beat estimates, but only slightly. Revenue was $260 million higher than expectations (compared to $64 billion in quarterly revenue) and earnings per share did beat estimates by $0.02.Microsoft Q424 PresentationSimilar to the last few quarters and years, Microsoft reported great metrics and high year-over-year growth. Total revenue in Q4/24 was $64,727 million and compared to $56,189 million in Q4/23 this is resulting in 15.2% year-over-year growth. While revenue from products declined from $16,853 million in the same quarter last year to $13,217 million this quarter (resulting in a 21.6% YoY decline), revenue from “Service and other” increased 30.9% YoY from $39,336 million in Q4/23 to $51,510 million in Q4/24. And operating income increased from $24,254 million in the same quarter last year to $27,925 million this quarter – an increase of 15.1% YoY. Finally, diluted earnings per share increased 9.7% YoY from $2.69 in the same quarter last year to $2.95 this quarter.Microsoft Q4/24 Earnings ReleaseAnd the picture for the full-year results is quite similar. Total revenue increased from $211,915 million to $245,122 million and growth was once again driven by “Service and Other” while revenue for “Products” stagnated year-over-year. And while the top line grew 15.7% year-over-year, operating income increased 23.6% YoY from $88,523 million in the same quarter last year to $109,443 million this quarter. Finally, diluted earnings per share increased from $9.68 to $11.80 – 21.9% YoY growth.Data by YChartsLooking at the results of only a few quarters is seldom enough for a reasonable picture of a business. However, when looking at the results of the last five years we see some fluctuations for earnings per share and free cash flow, but overall, the company grew with a solid pace and high levels of consistency.And while there are some differences in growth rates for the three business segments, all grew in the double digits, with Productivity and Business Processes growing only 11% YoY to $20.3 billion in Q4/24 and Intelligent Cloud increasing 19% YoY to $28.5 billion in revenue. The third business segment, More Personal Computing, was in-between these two with 14% year-over-year growth to $15.9 billion quarterly revenue.New Reporting StructureThe above-mentioned quarterly results are still according to the old business structure. Last week, on August 21, 2024, Microsoft reported changes for its reporting segments and investor metric changes. The three major segments remain the same, but several subsegments have been restructured.Microsoft Fiscal 2025 Investor MetricsEspecially the new subsegment “Microsoft 365 commercial products and cloud services” has now several business parts included which were previously part of other segments: Windows Commercial Cloud was previously a part of “More Personal Computing” and EMS & Power BI per-user was previously a part of “Intelligent Cloud”.Microsoft Fiscal 2025 Investor MetricsAnd as a consequence of the new reporting structure, Microsoft also updated its guidance for the first quarter of fiscal 2025. Overall revenue estimates remain the same, but of course, the estimates for the three different segments changed.Outlook: Growth, Recession and MoatWhile Microsoft had its first quarter guidance remain the same, analysts actually lowered expectations for the coming quarters constantly in the last few months. Estimates for revenue were lowered a little bit, and estimates for earnings per share were lowered a little bit more. And the changes are hardly visible in the chart, but I still think it is worth mentioning at this point. In the last three months we saw 27 down revisions for revenue (and not a singe up revision) and in the case of earnings per share, 5 analysts increased EPS estimates while 17 lowered estimates.Microsoft Quarterly EPS Estimates Revisions (Seeking Alpha)On the other hand, we should not ignore that analysts are still extremely optimistic for the years to come. Over the next ten years, analysts are expecting revenue to increase with a CAGR of 11.50% and revenue will increase from about $245 billion right now to almost $730 billion in fiscal 2034. And when looking at estimates for earnings per share, analysts are expecting the bottom line to grow with a CAGR of 12.90% over the next ten years.Microsoft Consensus EPS Estimates (Seeking Alpha)While estimates were slightly lowered for the next few quarters, the core message is that analysts are extremely optimistic for the next few years and expect 12% growth in fiscal 2025, 16% growth in fiscal 2026 and 17% growth in fiscal 2027. But as I have pointed out in several articles in the last few weeks (see for example my article about Simon Property Group (SPG) and Amazon.com (AMZN) as well as Alphabet (GOOG)) I see the United States on its way into a recession. The yield curve, initial claims for unemployment, housing permits, bankruptcies and Sahm Rule are giving us strong warning signals (once again, see previous articles mentioned above).And Microsoft certainly has a wide economic moat around its business that will protect the company against competitors and probably lead to stable revenue. But I certainly don’t think Microsoft can continue to grow with a similar pace as in the last few years.We can still be very optimistic about the cloud infrastructure market growing with a high pace in the years to come. But we don’t really know how this market will perform during a recession as this market is a rather young market, which did not exist during a previous recession – aside from the 2020 COVID recession (a recession that was different in many ways). We can assume that revenue will be rather stable (or maybe even continue to grow slightly) but I think the following estimates might be too optimistic.But as long as we are talking about the cloud business, we should also point out that Microsoft constantly increased its market share. While Amazon remains market leader with a market share slightly above 30%, Microsoft Azure improved its market share from slightly above 15% in 2018 to about 25% right now.Global Cloud Market Shares (Statista)When combining an overall growing market with Microsoft’s ability to gain market shares, we can be quite optimistic for the future – but maybe not for the next few years.While the cloud business is certainly important and one of the drivers of growth, Microsoft is a much more diversified business, and we should not ignore its bread-and-butter business – Windows or Office products for example. And Microsoft is such a great business as almost every business segment has a wide economic moat built around the business. Aside from the brand name, we are especially talking about switching costs. Almost every product is deeply embedded in the personal life or business structure and switching to the products of a competitor is extremely difficult. Retraining the staff of an entire company to use iOS instead of Windows is not only expensive but will impact the everyday working life probably for several weeks. Moving applications and data from one cloud provider to another will also not only take a lot of time, but once again impact everyday working life for many employees. And in case of LinkedIn, the company can rely on strong network effects – only gaming revenue might suffer during a recession as this can be seen as a leisure product and rather cyclical.In case of a recession, we can assume that Microsoft won’t be able to gain new customers, or existing customers won’t switch to better and more expensive products, but it might be able to keep its existing customers and keep revenue at least stable. But as we will see in the following section, Microsoft must grow with a very high pace in the next few years to be fairly valued right now.Intrinsic Value CalculationOne of the major reasons for me being rather cautious in the last few quarters was the stock price we must pay for Microsoft and the valuation multiples the stock was trading for. And when looking at the valuation multiples right now, the picture did not really improve. At the time of writing, Microsoft is still trading for 35 times earnings as well as 42 times free cash flow. Both metrics are not only above the 10-year average (32.23 for the P/E ratio and 28.01 for the P/FCF ratio) but are high valuation multiples on an absolute basis.Data by YChartsAnd as we saw above, Microsoft constantly improved earnings per share and free cash flow in the last few years and therefore the high valuation multiples are not the result of a declining bottom line.To get a better picture and maybe more precise intrinsic value for Microsoft, we can use a discount cash flow calculation. As always, we are calculating with a 10% discount rate, as this is the return we like to achieve at least. And we are calculating with the last reported number of outstanding diluted shares (7,472 million). Now we must make some estimates for free cash flow in the next few years and growth rates that are realistic for Microsoft. As a starting point, we can use the free cash flow of the last four quarters, which was $74 billion and instead of making estimates about free cash flow and growth rates, let’s look at the share price from a different perspective. In order to be fairly valued right now, Microsoft must grow free cash flow 18% annually for the next ten years, followed by 4% growth till perpetuity.Data by YChartsNow, let’s provide a little more context to these numbers. For starters, the free cash flow is the highest it has ever been. And in the case of Microsoft, free cash flow is constantly increasing, but there is some risk we are close to a cycle peak and lower free cash flow in the next few quarters is certainly a possibility.Additionally, 18% growth for the next 10 years is very ambitious. When looking at the last 10 years, which have certainly been successful years for Microsoft, earnings per share increased “only” with a CAGR of 16.20% and – as mentioned above – analysts expect earnings per share to grow with a CAGR of 13% in the next ten years. Overall, I would not bet on Microsoft growing 18% annually in the next ten years – especially considering a potential recession and free cash flow already being extremely high. On the other hand, we should point out that free cash flow conversion has been pretty stable in the last few years.And finally, we can look at the growth rate until perpetuity. In the past, I often calculated with 6% growth until perpetuity (and I still think it is possible to justify these higher terminal growth rates for high quality businesses). Nevertheless, it also seems reasonable to be a little more cautious and follow the recommendations of the CFI (and others) and use a lower terminal growth rate, but due to the high-quality business, 4% seems certainly reasonable.ConclusionI still see Microsoft as a “Hold” at this point. Microsoft is undoubtedly a great business and probably will be able to perform well even in times of a recession. However, considering the current share price, we can’t see Microsoft as a good investment at this point.","news_type":1},"isVote":1,"tweetType":1,"viewCount":105,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410226815104,"gmtCreate":1725077303175,"gmtModify":1725077306755,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410226815104","repostId":"2463821795","repostType":2,"repost":{"id":"2463821795","pubTimestamp":1724986833,"share":"https://ttm.financial/m/news/2463821795?lang=&edition=fundamental","pubTime":"2024-08-30 11:00","market":"sg","language":"en","title":"Singapore's Top 10 Most Important REITs","url":"https://stock-news.laohu8.com/highlight/detail?id=2463821795","media":"The Smart Investor","summary":"There are over 40 REITs and property trusts in Singapore. The top 10 REITs account for close to 70% of the S-REIT index, giving the group an outsized influence over the index’s movements.","content":"<html><head></head><body><p>Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).</p><p>As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the Lion City’s total stock market capitalisation. </p><p>This figure is significantly higher than other Asian countries, such as Japan (3.5%),  Hong Kong (3.3%), China (3.2%), Malaysia (2.4%), and India (1.8%), highlighting the importance of the S-REITs sector to the local bourse.</p><p>The most closely watched REIT index in Singapore is the iEdge S-REIT index. </p><p>This index tracks the performance of a basket of S-REITs and is regarded as Singapore’s benchmark for the sector.</p><h2 id=\"id_2946570724\">The heavyweights of the S-REIT sector</h2><p>The iEdge S-REIT Index is weighted by market capitalization. </p><p>While the index comprises 31 REITs, the top 10 largest companies exert a disproportionate influence due to their substantial market value.</p><p>Let’s delve into the 10 biggest constituents of the index.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7a78e4273d2ac85bd00700ba9a35bf87\" alt=\"Source: iEdge S-REIT Indices factsheet, as of 31 July 2024\" title=\"Source: iEdge S-REIT Indices factsheet, as of 31 July 2024\" tg-width=\"1024\" tg-height=\"784\"/><span>Source: iEdge S-REIT Indices factsheet, as of 31 July 2024</span></p><h2 id=\"id_3613652925\">The Big 10 REITs in Singapore</h2><p>The top 10 REITs make up the lion’s share of the iEdge S-REIT index, accounting for nearly 70% of its weightage.  </p><p>Notably, the two largest REITs, namely <a href=\"https://laohu8.com/S/C38U.SI\">CapitaLand Integrated Commercial Trust</a>, or CICT, and <a href=\"https://laohu8.com/S/A17U.SI\">CapitaLand Ascendas REIT</a>, or CLAR, share a common sponsor, <a href=\"https://laohu8.com/S/9CI.SI\">CapitaLand Investment Limited</a>.</p><p>As of 31 July 2024, CICT sports a market capitalisation of S$13.5 billion while CLAR weighed in at S$11.9 billion. Together, they account for over a fifth of the iEdge S-REIT index. </p><p>Incidentally, both are also key components in Singapore’s Straits Times Index.</p><p>Another CapitaLand-affiliated REIT, <a href=\"https://laohu8.com/S/HMN.SI\">CapitaLand Ascott Trust</a>, accounts for 4.32% of the index’s weightage.  </p><p>Beyond CapitaLand, Beyond CapitaLand, the Mapletree group also significantly contributes to the index with three REITs: <a href=\"https://laohu8.com/S/ME8U.SI\">Mapletree Industrial Trust</a>, <a href=\"https://laohu8.com/S/M44U.SI\">Mapletree Logistics Trust</a> and <a href=\"https://laohu8.com/S/N2IU.SI\">Mapletree Pan Asia Commercial Trust</a>.</p><p>Collectively, these Mapletree REITs contribute more than a quarter of the index’s weightage and boast a combined market capitalization of nearly S$20 billion. </p><p>Like CICT and CLAR, all three Mapletree REITs are also part of Singapore’s STI. </p><p>Joining the CapitaLand and Mapletree REITs in the top 10 are the Frasers pair, <a href=\"https://laohu8.com/S/J69U.SI\">Frasers Centrepoint Trust</a>, or FCT, and <a href=\"https://laohu8.com/S/BUOU.SI\">Frasers Logistics and Commercial Trust</a>, or FLCT. </p><p>Together, they are valued at around S$7.5 billion, account for close to 10% of the index’s weightage and are also part of the STI.</p><p>Rounding out the list is another pair from Keppel, namely <a href=\"https://laohu8.com/S/AJBU.SI\">Keppel DC REIT</a> and <a href=\"https://laohu8.com/S/K71U.SI\">Keppel REIT</a>. The two REITs contribute roughly 9.6% of the index weight and sport a combined market cap of around S$6.8 billion. </p><h2 id=\"id_246507244\">The hope and pain of interest rates </h2><p>As a whole, the Top 10 REITs in the iEdge S-REIT index provides investors with exposure to the traditional property sectors such as industrial, retail and commercial. </p><p>Interest rates have been a bane to the industry since late 2022.</p><p>However, there could be light at the end of the tunnel with the US Federal Reserve signalling a possible interest rate cut soon.</p><p>Attention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.</p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore's Top 10 Most Important REITs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore's Top 10 Most Important REITs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-30 11:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU2088748020.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC A","SG9999001135.SGD":"United ASEAN Fund SGD","SG9999014302.SGD":"RHB Singapore Income Fund SGD","C38U.SI":"凯德商用新加坡信托","BUOU.SI":"星狮物流工业信托","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","BK6089":"酒店及度假村房地产投资信托","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","9CI.SI":"凯德投资","LU2088748376.SGD":"Eastspring Investments - Asia Real Estate Multi Asset Income Cl ASDM SGD-H","BK6505":"周期性消费品与消费者服务","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","ME8U.SI":"丰树工业信托","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","BK6110":"房地产经营公司","K71U.SI":"吉宝房地产信托","AJBU.SI":"吉宝数据中心房地产信托","J69U.SI":"星狮地产信托","LU1316543674.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A3 SGD","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","LU0918141887.USD":"安联亚洲实际收益股票基金","SG9999001127.SGD":"United Singapore Growth Fund SGD","BN4.SI":"吉宝有限公司","SG9999002406.SGD":"利安新加坡信托基金","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","STI.SI":"富时新加坡海峡指数","LU2226123227.USD":"Janus Henderson Horizon Asia-Pacific Property Income A5m USD","A17U.SI":"凯德腾飞房产信托","LU2226123490.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A5m SGD","HMN.SI":"凯德雅诗阁信托","BK6011":"零售业房地产投资信托","M44U.SI":"丰树物流信托","LU0229494975.USD":"骏利亨德森亚太地产股票基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","BK6099":"办公房地产投资信托","LU2088748293.HKD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"AHD\" (HKD) INC","SG9999013478.USD":"利安新加坡股息基金","N2IU.SI":"丰树商业信托","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","BK6111":"工业集团企业","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD"},"source_url":"https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463821795","content_text":"Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the Lion City’s total stock market capitalisation. This figure is significantly higher than other Asian countries, such as Japan (3.5%),  Hong Kong (3.3%), China (3.2%), Malaysia (2.4%), and India (1.8%), highlighting the importance of the S-REITs sector to the local bourse.The most closely watched REIT index in Singapore is the iEdge S-REIT index. This index tracks the performance of a basket of S-REITs and is regarded as Singapore’s benchmark for the sector.The heavyweights of the S-REIT sectorThe iEdge S-REIT Index is weighted by market capitalization. While the index comprises 31 REITs, the top 10 largest companies exert a disproportionate influence due to their substantial market value.Let’s delve into the 10 biggest constituents of the index.Source: iEdge S-REIT Indices factsheet, as of 31 July 2024The Big 10 REITs in SingaporeThe top 10 REITs make up the lion’s share of the iEdge S-REIT index, accounting for nearly 70% of its weightage.  Notably, the two largest REITs, namely CapitaLand Integrated Commercial Trust, or CICT, and CapitaLand Ascendas REIT, or CLAR, share a common sponsor, CapitaLand Investment Limited.As of 31 July 2024, CICT sports a market capitalisation of S$13.5 billion while CLAR weighed in at S$11.9 billion. Together, they account for over a fifth of the iEdge S-REIT index. Incidentally, both are also key components in Singapore’s Straits Times Index.Another CapitaLand-affiliated REIT, CapitaLand Ascott Trust, accounts for 4.32% of the index’s weightage.  Beyond CapitaLand, Beyond CapitaLand, the Mapletree group also significantly contributes to the index with three REITs: Mapletree Industrial Trust, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust.Collectively, these Mapletree REITs contribute more than a quarter of the index’s weightage and boast a combined market capitalization of nearly S$20 billion. Like CICT and CLAR, all three Mapletree REITs are also part of Singapore’s STI. Joining the CapitaLand and Mapletree REITs in the top 10 are the Frasers pair, Frasers Centrepoint Trust, or FCT, and Frasers Logistics and Commercial Trust, or FLCT. Together, they are valued at around S$7.5 billion, account for close to 10% of the index’s weightage and are also part of the STI.Rounding out the list is another pair from Keppel, namely Keppel DC REIT and Keppel REIT. The two REITs contribute roughly 9.6% of the index weight and sport a combined market cap of around S$6.8 billion. The hope and pain of interest rates As a whole, the Top 10 REITs in the iEdge S-REIT index provides investors with exposure to the traditional property sectors such as industrial, retail and commercial. Interest rates have been a bane to the industry since late 2022.However, there could be light at the end of the tunnel with the US Federal Reserve signalling a possible interest rate cut soon.Attention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.","news_type":1},"isVote":1,"tweetType":1,"viewCount":18,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":343261198012616,"gmtCreate":1724822450565,"gmtModify":1724822452598,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/343261198012616","repostId":"2462196068","repostType":2,"repost":{"id":"2462196068","pubTimestamp":1724814215,"share":"https://ttm.financial/m/news/2462196068?lang=&edition=fundamental","pubTime":"2024-08-28 11:03","market":"fut","language":"en","title":"Amazon: This Could Be The Top","url":"https://stock-news.laohu8.com/highlight/detail?id=2462196068","media":"seekingalpha","summary":"Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro","content":"<html><head></head><body><ul style=\"\"><li><p>Amazon&#39;s shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.</p></li><li><p>Amazon has growth catalysts across the world, but faces macro risks and competition from Chinese marketplaces.</p></li><li><p>Despite potential for growth, Amazon&#39;s stock offers little margin of safety, making it a HOLD at best for investors.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/996a6ca53d678e82b3c1c9499d447ba1\" tg-width=\"750\" tg-height=\"500\"/></p><p>HJBC</p><p></p><p>After briefly reaching the $200 per share level, Amazon’s (NASDAQ:AMZN) shares have been mostly depreciating since the middle of July, primarily due to the overall market correction and the mixed earnings report that the company released a few weeks ago. While shares have recently started to gradually recover after finding a support level of around $160 per share, they are still far away from reaching the all-time levels anytime soon. Even though the company has several major growth catalysts going for it, the rising macro and China-related risks coupled with the minimal margin of safety make Amazon only a HOLD at this stage.</p><h2 id=\"id_2922773680\">The Growth Story Is Not Over Yet</h2><p>Last month before the earnings report for Q2 came in, I published an article about Amazon with a HOLD rating where I noted that even though the company is likely to continue to perform well in the foreseeable future, the rising macro risks could suppress the business’s overall upside. Since that time, Amazon’s shares have slightly depreciated and underperformed the broader market.</p><p>The poor performance of the company’s shares could be attributed to the overall market selloff that happened a few weeks ago due to the rising recession fears and also due to a mixed earnings report that Amazon released earlier this month. While the company managed to increase its revenues by 10.2% Y/Y to $148 billion in Q2, they were below the expectations by $760 million. At the same time, the guidance was weaker than expected and resulted in a major drop in Amazon’s share price earlier this month.</p><p>The good news, though, is that Amazon has several growth catalysts, which should make it possible for the company to continue to grow its business at a decent rate. In Q2, Amazon’s North America segment sales were up 9% Y/Y to $90 billion, and given the fact that the U.S. retail sales were up in July, it’s likely that we’ll see further growth in Q3 as well. At the same time, the improving macro environment should also help Amazon deliver a decent performance beyond Q3.</p><p>If we look at the recent CPI report, we’ll see that the headline inflation increased only by 2.9% Y/Y last month, which indicates that a return to normalcy is likely around the corner. The Federal Reserve is already planning to cut interest rates next month, while Goldman Sachs (GS) recently decreased the odds of the American recession, which signals that the U.S. economy remains robust. All of this should help Amazon perform well in North America in the foreseeable future.</p><p>On top of that, Amazon also has a chance to continue to perform well in foreign markets. In Q2, the company’s international segment sales were already up 7% Y/Y to $31.7 billion. Given the fact the GDP of the euro area and the GDP of the countries that are part of the OECD were on the rise in recent quarters, it makes sense to assume that the global economy also remains healthy and should help Amazon grow its international sales in the future as consumer confidence is slowly being restored.</p><p>In addition to all of that, Amazon’s businesses that are not related to eCommerce have everything going for them to create additional shareholder value as well. In Q2, Amazon’s AWS segment sales were up 19% Y/Y to $26.3 billion. Given the fact that the cloud market is expected to grow at a double-digit CAGR, it makes sense to assume that the company’s cloud revenues are likely to increase in Q3 and beyond.</p><p>At the same time, Amazon’s advertising services revenue was up 20% Y/Y to $12.8 billion. Since the digital advertising market is expected to grow at a double-digit rate as well, it would be safe to say that Amazon’s advertising revenues will be on the rise as well.</p><p>Considering all of this, it makes sense to assume that Amazon’s growth story is not over yet. While the guidance for Q3 was below expectations, the company nevertheless is forecasted to grow its sales at a double-digit rate in the upcoming years, which indicates that there are plenty of opportunities for Amazon to improve its performance in the future.</p><h2 id=\"id_3465350541\">Major Macro Risks Still Remain</h2><p>Although Amazon has several macro tailwinds going for it, it nevertheless faces numerous challenges that could undermine its growth story. First of all, even though the stock market has recovered from the selloff that happened earlier this month due to the higher unemployment numbers, there are fears that the Federal Reserve could be too late in changing its policy. There’s a possibility that the central bank held rates high for too long, which could have negative near-term consequences for the economy and undermine Amazon’s growth story in the future.</p><p>In addition to that, Amazon faces tougher competition within the eCommerce market as Chinese marketplaces such as Temu (PDD), Shein, AliExpress (BABA), and others have been actively penetrating North America. At the same time, TikTok (BDNCE) is also aiming to capture a portion of the market share thanks to its TikTok Shop features, which give merchants the ability to sell their goods directly to consumers via the platform.</p><p>To counter the rise of its Chinese counterparts, Amazon is now planning on directly shipping goods from China, which should undermine the advantage that its foreign peers have. However, the potential escalation of the Sino-American trade war and the potential worsening of relationships between the two biggest economies in the world could make it harder for Amazon to properly monetize its China-related initiatives.</p><p>On top of all of that, it also appears that Amazon offers little margin of safety at this stage. Last month before the Q2 earnings results came in, my DCF model showed that Amazon’s fair value was $173.35 per share, which at that time meant that the stock was relatively overvalued. That’s why when the overall market tumbled earlier this month, it was no surprise that the shares depreciated as well.</p><p>Since the new earnings report came out and new numbers were revealed, I decided to update my model, which can be seen below. Considering that Amazon’s revenue in Q2 came in below the consensus and the company itself received dozens of revenue downward revisions recently, I have slightly decreased the revenue growth rate in FY24 in the updated model. This is in-line with the overall consensus for the year right now, but I also did not change the revenue growth rate for FY25 and beyond, since the favorable environment coupled with numerous growth catalysts make it possible for Amazon to continue to scale its business at a double-digit rate.</p><p>The EBIT assumptions are also closely correlated with the overall expectations and are expected to gradually increase thanks to the potential improvement of margins as a result of the utilization of the company’s dominant position in the eCommerce and cloud fields. The CapEx is also expected to significantly increase in the following years, primarily to support the AWS infrastructure and the company’s generative AI projects. During the recent earnings call, Amazon’s management said that the expenditures in the first half of the year were $30.5 billion and are expected to be higher in the second half of the year. This has been reflected in the updated model. The assumptions for all the other main metrics mostly remained the same, and they closely mirror Amazon’s historical performance.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d2618543c5d5862c4926a8387c258b5f\" tg-width=\"640\" tg-height=\"319\"/></p><p>Amazon&#39;s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)</p><p></p><p>The updated model shows that Amazon’s fair value is $169.33 per share. It’s slightly below the previous calculations, but not that significant.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/541fbc7d34b08689c011aceece286d1c\" tg-width=\"640\" tg-height=\"137\"/></p><p>Amazon&#39;s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)</p><p></p><p>The most important thing to understand here is that the company’s shares offer little margin of safety for investors. While it’s likely that if the macro environment continues to improve and positively affects the broader market, then Amazon’s shares will be able to regain their momentum and appreciate further. However, if we see a potential repeat of the situation that happened at the beginning of this month when the overall market tumbled, then the depreciation of Amazon’s shares could lose significant value as there would be no fundamental reasons for it to trade higher from the current levels.</p><h2 id=\"id_2321124821\">The Bottom Line</h2><p>Amazon remains a decent company that is likely going to continue to grow at a double-digit rate if the macro environment remains stable. However, the rising macro and China-related risks could nevertheless diminish its upside, while the relatively non-existent margin of safety makes its stock a HOLD at best.</p><p>Editor&#39;s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Could Be The Top</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Could Be The Top\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-28 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro...</p>\n\n<a href=\"https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4554":"元宇宙及AR概念","LU0052750758.USD":"富兰克林中国基金A Acc","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","BK4565":"NFT概念","AMZN":"亚马逊","BK4548":"巴美列捷福持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","LU0231483743.USD":"abrdn SICAV I - ALL CHINA SUSTAINABLE EQUITY \"A\" (USD) ACC","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4526":"热门中概股","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4538":"云计算","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0080751232.USD":"富达环球多元动力基金A","BK4535":"淡马锡持仓","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0605514214.HKD":"FIDELITY CHINA CONSUMER \"A\" (HKD) ACC","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0048580855.USD":"富达大中华区A","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0329678170.USD":"FIDELITY EMERGING ASIA \"A\" (USD) INC","BK4531":"中概回港概念","LU0051755006.USD":"摩根大通中国A (dist)","LU0594300419.USD":"富达中国消费基金A","BK4553":"喜马拉雅资本持仓","BK4532":"文艺复兴科技持仓","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","LU0329678337.USD":"FIDELITY EMERGING ASIA \"A\" (USD)","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD"},"source_url":"https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2462196068","content_text":"Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro risks and competition from Chinese marketplaces.Despite potential for growth, Amazon's stock offers little margin of safety, making it a HOLD at best for investors.HJBCAfter briefly reaching the $200 per share level, Amazon’s (NASDAQ:AMZN) shares have been mostly depreciating since the middle of July, primarily due to the overall market correction and the mixed earnings report that the company released a few weeks ago. While shares have recently started to gradually recover after finding a support level of around $160 per share, they are still far away from reaching the all-time levels anytime soon. Even though the company has several major growth catalysts going for it, the rising macro and China-related risks coupled with the minimal margin of safety make Amazon only a HOLD at this stage.The Growth Story Is Not Over YetLast month before the earnings report for Q2 came in, I published an article about Amazon with a HOLD rating where I noted that even though the company is likely to continue to perform well in the foreseeable future, the rising macro risks could suppress the business’s overall upside. Since that time, Amazon’s shares have slightly depreciated and underperformed the broader market.The poor performance of the company’s shares could be attributed to the overall market selloff that happened a few weeks ago due to the rising recession fears and also due to a mixed earnings report that Amazon released earlier this month. While the company managed to increase its revenues by 10.2% Y/Y to $148 billion in Q2, they were below the expectations by $760 million. At the same time, the guidance was weaker than expected and resulted in a major drop in Amazon’s share price earlier this month.The good news, though, is that Amazon has several growth catalysts, which should make it possible for the company to continue to grow its business at a decent rate. In Q2, Amazon’s North America segment sales were up 9% Y/Y to $90 billion, and given the fact that the U.S. retail sales were up in July, it’s likely that we’ll see further growth in Q3 as well. At the same time, the improving macro environment should also help Amazon deliver a decent performance beyond Q3.If we look at the recent CPI report, we’ll see that the headline inflation increased only by 2.9% Y/Y last month, which indicates that a return to normalcy is likely around the corner. The Federal Reserve is already planning to cut interest rates next month, while Goldman Sachs (GS) recently decreased the odds of the American recession, which signals that the U.S. economy remains robust. All of this should help Amazon perform well in North America in the foreseeable future.On top of that, Amazon also has a chance to continue to perform well in foreign markets. In Q2, the company’s international segment sales were already up 7% Y/Y to $31.7 billion. Given the fact the GDP of the euro area and the GDP of the countries that are part of the OECD were on the rise in recent quarters, it makes sense to assume that the global economy also remains healthy and should help Amazon grow its international sales in the future as consumer confidence is slowly being restored.In addition to all of that, Amazon’s businesses that are not related to eCommerce have everything going for them to create additional shareholder value as well. In Q2, Amazon’s AWS segment sales were up 19% Y/Y to $26.3 billion. Given the fact that the cloud market is expected to grow at a double-digit CAGR, it makes sense to assume that the company’s cloud revenues are likely to increase in Q3 and beyond.At the same time, Amazon’s advertising services revenue was up 20% Y/Y to $12.8 billion. Since the digital advertising market is expected to grow at a double-digit rate as well, it would be safe to say that Amazon’s advertising revenues will be on the rise as well.Considering all of this, it makes sense to assume that Amazon’s growth story is not over yet. While the guidance for Q3 was below expectations, the company nevertheless is forecasted to grow its sales at a double-digit rate in the upcoming years, which indicates that there are plenty of opportunities for Amazon to improve its performance in the future.Major Macro Risks Still RemainAlthough Amazon has several macro tailwinds going for it, it nevertheless faces numerous challenges that could undermine its growth story. First of all, even though the stock market has recovered from the selloff that happened earlier this month due to the higher unemployment numbers, there are fears that the Federal Reserve could be too late in changing its policy. There’s a possibility that the central bank held rates high for too long, which could have negative near-term consequences for the economy and undermine Amazon’s growth story in the future.In addition to that, Amazon faces tougher competition within the eCommerce market as Chinese marketplaces such as Temu (PDD), Shein, AliExpress (BABA), and others have been actively penetrating North America. At the same time, TikTok (BDNCE) is also aiming to capture a portion of the market share thanks to its TikTok Shop features, which give merchants the ability to sell their goods directly to consumers via the platform.To counter the rise of its Chinese counterparts, Amazon is now planning on directly shipping goods from China, which should undermine the advantage that its foreign peers have. However, the potential escalation of the Sino-American trade war and the potential worsening of relationships between the two biggest economies in the world could make it harder for Amazon to properly monetize its China-related initiatives.On top of all of that, it also appears that Amazon offers little margin of safety at this stage. Last month before the Q2 earnings results came in, my DCF model showed that Amazon’s fair value was $173.35 per share, which at that time meant that the stock was relatively overvalued. That’s why when the overall market tumbled earlier this month, it was no surprise that the shares depreciated as well.Since the new earnings report came out and new numbers were revealed, I decided to update my model, which can be seen below. Considering that Amazon’s revenue in Q2 came in below the consensus and the company itself received dozens of revenue downward revisions recently, I have slightly decreased the revenue growth rate in FY24 in the updated model. This is in-line with the overall consensus for the year right now, but I also did not change the revenue growth rate for FY25 and beyond, since the favorable environment coupled with numerous growth catalysts make it possible for Amazon to continue to scale its business at a double-digit rate.The EBIT assumptions are also closely correlated with the overall expectations and are expected to gradually increase thanks to the potential improvement of margins as a result of the utilization of the company’s dominant position in the eCommerce and cloud fields. The CapEx is also expected to significantly increase in the following years, primarily to support the AWS infrastructure and the company’s generative AI projects. During the recent earnings call, Amazon’s management said that the expenditures in the first half of the year were $30.5 billion and are expected to be higher in the second half of the year. This has been reflected in the updated model. The assumptions for all the other main metrics mostly remained the same, and they closely mirror Amazon’s historical performance.Amazon's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)The updated model shows that Amazon’s fair value is $169.33 per share. It’s slightly below the previous calculations, but not that significant.Amazon's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)The most important thing to understand here is that the company’s shares offer little margin of safety for investors. While it’s likely that if the macro environment continues to improve and positively affects the broader market, then Amazon’s shares will be able to regain their momentum and appreciate further. However, if we see a potential repeat of the situation that happened at the beginning of this month when the overall market tumbled, then the depreciation of Amazon’s shares could lose significant value as there would be no fundamental reasons for it to trade higher from the current levels.The Bottom LineAmazon remains a decent company that is likely going to continue to grow at a double-digit rate if the macro environment remains stable. However, the rising macro and China-related risks could nevertheless diminish its upside, while the relatively non-existent margin of safety makes its stock a HOLD at best.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":63,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333028701171864,"gmtCreate":1722333866768,"gmtModify":1722333868878,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333028701171864","repostId":"2455362551","repostType":2,"repost":{"id":"2455362551","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1722306575,"share":"https://ttm.financial/m/news/2455362551?lang=&edition=fundamental","pubTime":"2024-07-30 10:29","market":"us","language":"en","title":"Investors on Alert for Fed Signals of September Rate Cut","url":"https://stock-news.laohu8.com/highlight/detail?id=2455362551","media":"Dow Jones","summary":"The big question going into the Federal Reserve's meeting Wednesday comes down to how strongly officials signal their desire to cut rates.The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conf","content":"<html><head></head><body><p>The big question going into the Federal Reserve&#39;s meeting Wednesday comes down to how strongly officials signal their desire to cut rates.</p><p>The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.</p><p>The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here&#39;s a look at the four most important questions ahead of the decision:</p><p><strong>Where do officials set the bar for a September interest-rate cut?</strong></p><p>Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed&#39;s rate-setting committee.</p><p>Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including:</p><p> -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed&#39;s 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.</p><p>Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell&#39;s press conference. There, he can elaborate on how officials are approaching the question of rate cuts.</p><p>Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. &#34;If the inflation news is OK between now and September, then they can say, OK, now we&#39;re confident that we&#39;re on track, and we&#39;re going to start cutting rates,&#34; said William English, a former senior Fed adviser.</p><p><strong>Why are officials moving closer to cutting rates?</strong></p><p>Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.</p><p>But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.</p><p>&#34;The Fed knows the medicine it&#39;s administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,&#34; said Raghuram Rajan, a former governor of India&#39;s central bank.</p><p>&#34;There will be a temptation to say, &#39;Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,&#39; and even after the Fed cuts, policy may remain restrictive,&#34; said Rajan.</p><p><strong>Why not cut rates now?</strong></p><p>Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.</p><p>Still, top Fed officials have signaled they aren&#39;t yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed&#39;s June meeting, Powell said the first cut will be a &#34;consequential decision&#34; that &#34;you want to get right.&#34;</p><p>Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn&#39;t warranted yet. As a result, a rate reduction on Wednesday &#34;looks panicky, and I think it&#39;s likely to be unhelpful,&#34; said English, a professor at Yale School of Management.</p><p><strong>What happens after the first cut?</strong></p><p>Powell isn&#39;t likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials&#39; private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.</p><p>Since last year, Fed officials&#39; quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.</p><p>Fed officials won&#39;t present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.</p><p>&#34;If they have enough confidence to go in September, then that&#39;s got to make November live as well as December,&#34; said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.</p><p>The near-term outlook faces an awkward complication: November&#39;s two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.</p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investors on Alert for Fed Signals of September Rate Cut</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvestors on Alert for Fed Signals of September Rate Cut\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-30 10:29</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>The big question going into the Federal Reserve&#39;s meeting Wednesday comes down to how strongly officials signal their desire to cut rates.</p><p>The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.</p><p>The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here&#39;s a look at the four most important questions ahead of the decision:</p><p><strong>Where do officials set the bar for a September interest-rate cut?</strong></p><p>Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed&#39;s rate-setting committee.</p><p>Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including:</p><p> -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed&#39;s 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.</p><p>Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell&#39;s press conference. There, he can elaborate on how officials are approaching the question of rate cuts.</p><p>Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. &#34;If the inflation news is OK between now and September, then they can say, OK, now we&#39;re confident that we&#39;re on track, and we&#39;re going to start cutting rates,&#34; said William English, a former senior Fed adviser.</p><p><strong>Why are officials moving closer to cutting rates?</strong></p><p>Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.</p><p>But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.</p><p>&#34;The Fed knows the medicine it&#39;s administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,&#34; said Raghuram Rajan, a former governor of India&#39;s central bank.</p><p>&#34;There will be a temptation to say, &#39;Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,&#39; and even after the Fed cuts, policy may remain restrictive,&#34; said Rajan.</p><p><strong>Why not cut rates now?</strong></p><p>Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.</p><p>Still, top Fed officials have signaled they aren&#39;t yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed&#39;s June meeting, Powell said the first cut will be a &#34;consequential decision&#34; that &#34;you want to get right.&#34;</p><p>Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn&#39;t warranted yet. As a result, a rate reduction on Wednesday &#34;looks panicky, and I think it&#39;s likely to be unhelpful,&#34; said English, a professor at Yale School of Management.</p><p><strong>What happens after the first cut?</strong></p><p>Powell isn&#39;t likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials&#39; private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.</p><p>Since last year, Fed officials&#39; quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.</p><p>Fed officials won&#39;t present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.</p><p>&#34;If they have enough confidence to go in September, then that&#39;s got to make November live as well as December,&#34; said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.</p><p>The near-term outlook faces an awkward complication: November&#39;s two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.</p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite","SQQQ":"纳指三倍做空ETF","QQQ":"纳指100ETF",".SPX":"S&P 500 Index","TQQQ":"纳指三倍做多ETF",".DJI":"道琼斯"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2455362551","content_text":"The big question going into the Federal Reserve's meeting Wednesday comes down to how strongly officials signal their desire to cut rates.The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here's a look at the four most important questions ahead of the decision:Where do officials set the bar for a September interest-rate cut?Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed's rate-setting committee.Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including: -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed's 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell's press conference. There, he can elaborate on how officials are approaching the question of rate cuts.Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. \"If the inflation news is OK between now and September, then they can say, OK, now we're confident that we're on track, and we're going to start cutting rates,\" said William English, a former senior Fed adviser.Why are officials moving closer to cutting rates?Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.\"The Fed knows the medicine it's administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,\" said Raghuram Rajan, a former governor of India's central bank.\"There will be a temptation to say, 'Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,' and even after the Fed cuts, policy may remain restrictive,\" said Rajan.Why not cut rates now?Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.Still, top Fed officials have signaled they aren't yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed's June meeting, Powell said the first cut will be a \"consequential decision\" that \"you want to get right.\"Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn't warranted yet. As a result, a rate reduction on Wednesday \"looks panicky, and I think it's likely to be unhelpful,\" said English, a professor at Yale School of Management.What happens after the first cut?Powell isn't likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials' private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.Since last year, Fed officials' quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.Fed officials won't present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.\"If they have enough confidence to go in September, then that's got to make November live as well as December,\" said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.The near-term outlook faces an awkward complication: November's two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.","news_type":1},"isVote":1,"tweetType":1,"viewCount":85,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333028512989336,"gmtCreate":1722333820825,"gmtModify":1722333822743,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333028512989336","repostId":"2455697789","repostType":2,"repost":{"id":"2455697789","pubTimestamp":1722311030,"share":"https://ttm.financial/m/news/2455697789?lang=&edition=fundamental","pubTime":"2024-07-30 11:43","market":"nz","language":"en","title":"Meta Q2 Earnings Preview: Best AI Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2455697789","media":"seekingalpha","summary":"Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage ad","content":"<html><head></head><body><ul style=\"\"><li><p><a href=\"https://laohu8.com/S/META\">Meta Platforms</a>, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.</p></li><li><p>The Llama 3.1 405B model allows developers to leverage advanced AI capabilities, leading to industry-standard adoption with key partners like Amazon and Nvidia.</p></li><li><p>Despite investor concerns over CapEx, Meta&#39;s open-source strategy is expected to democratize AI access and drive innovation, making them a strong AI stock investment.</p></li><li><p>Their AI strategy allows Meta to benefit from market innovations without having to pay for expensive R&amp;D.</p></li><li><p>I think the stock is set up well going into Q2 earnings Wednesday.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/60ead5ada46ec1bca135133b521f97c5\" tg-width=\"750\" tg-height=\"500\"/></p><p>Anna Moneymaker/Getty Images News</p><p></p><h2 id=\"id_3694910815\">Investment Thesis</h2><p>As the AI revolution approaches its two-year mark (kicked-off with the launch of ChatGPT), I believe the real winners and losers are now starting to stand out. <strong>Meta Platforms, Inc.</strong> (NASDAQ:META), in my opinion, has emerged as a notable leader by betting heavily on their open-source AI models. Their Llama 3.1 model family, unveiled in this month, is touted to lead the industry because of their performance, open-source nature, and cost-efficiency, according to the company. I believe Meta has paved the way for a broader trend where enterprises can benefit from open-source, allowing collaboration to compete against closed, proprietary systems like OpenAI.</p><p>The Llama 3.1 405B model is the first frontier-level open-source AI model (meaning it also beats closed models like OpenAI’s GPT 4o). It allows developers to leverage AI capabilities at a new level in various use cases, including for synthetic data generation and model distillation, which were previously unattainable at this scale in the open-source community.</p><p>Their collaborations with key industry partners like Amazon (AMZN)’s AWS, Nvidia (NVDA), Databricks, and others has facilitated the integration of the model across platforms. It’s a wise ecosystem approach, in my opinion, because it ensures that Llama models become the industry standard. With Llama being the industry standard for those who want to control the weights of their models, this brings exceptional benefits to Meta.</p><p>Heading into earnings on July 31st, I believe this new version of Llama is expected to democratize the public’s access to AI technology, especially for more developers and organizations to benefit from Meta’s advancements. The benefits for Meta themselves will be even greater than the benefits to developers.</p><p>As the company encourages widespread adoption and model customization, the improvements and innovations that feed back into Meta’s own development pipeline. CEO Mark Zuckerberg has a history of open-sourcing software tools to have the marketplace refine them, and for his company to use them. His strategy mirrors the historical success of open-source software like Linux, which became an industry standard due to its modifiability and ecosystem.</p><p>I am still a strong buy on Meta going into earnings. I believe this new strategy actually makes them the best AI stock investors can buy. Zuckerberg is playing a long game and leveraging the marketplace to accelerate innovation. I’m incredibly bullish.</p><h2 id=\"id_812244070\">Why I&#39;m Doing Follow-Up Coverage</h2><p>Since my last update, Meta&#39;s shares have underperformed the market due to growing investor concerns over their substantial capital expenditures (CapEx). Despite reporting a record 1Q 2024 revenue of $36.5 billion in April 2024, a 27% increase year-over-year, shares fell by more than 15% following the announcement of increased spending on AI infrastructure. I think this is incredibly misguided.</p><p>Meta&#39;s aggressive CapEx plans, projected to reach $35-40 billion, aim to enhance their AI capabilities and support the development of advanced models like Llama 3.1.</p><p>After last quarter, Investors became uneasy, fearing that the high costs might not yield immediate returns. The market&#39;s swift reaction reflects skepticism about the long-term payoffs of these investments. I think investors need to actually understand that the way Meta will benefit from these models is not through direct AI monetization like other AI giants are trying to do. They are trying to use the market to get free innovation. Meta is cutting their effective R&amp;D costs for tools they know they need internally, and they know will make them money if they are created and leveraged to make the world&#39;s largest social media company bigger. This is genius.</p><p>Zuckerberg has defended the heightened CapEx, and emphasized that massive investments in AI are crucial for maintaining competitive edge and driving innovation across Meta’s platforms, including Facebook, Instagram, and WhatsApp. He acknowledged the necessity of these expenditures to support AI advancements that could eventually enhance ad targeting and user engagement.</p><p>Zuckerberg’s strategy to enhance Meta’s AI infrastructure involves perfecting every layer of their stack, as Meta itself has reported. This helps ensure that Meta can handle the demands of large-scale model training to keep their AI services highly efficient and market leading. I’m writing this follow-up to show how the company is really one of the best AI plays through this open-source strategy and what it means for investors.</p><h2 id=\"id_1189981013\">What Is Meta&#39;s AI Strategy?</h2><p>Meta&#39;s open-source AI strategy has enabled the Llama 3.1 model series to outperform many closed-source models, according to the company. By expanding the context length to 128K and supporting eight languages, the Llama 3.1 models cater to a broader range of advanced use cases such as long-form text summarization, multilingual conversational agents, and coding assistants. It’s clear that Meta capitalizes on the growing demand for more capable and versatile AI tools.</p><p>Zuckerberg has a history of open-sourcing AI tools, which has accelerated the development and adoption of these technologies. For example, the release of the DINOv2 model, which performs advanced visual tasks, and the open-source animated drawings dataset have provided valuable resources for researchers and developers. As these tools were refined and placed back into the public, so others could leverage them, Meta has been able to use these refined tools (refined by millions of developers with new, cutting-edge perspectives).</p><p>While most businesses are trying to expand their business lines and break into new industries, Zuckerberg already commands this highly profitable ad placement system through Meta’s family of social media platforms. I often referred to as a “money printer,” due to its ability to generate exceptional returns for customers who place ads on the platform and for Meta itself through their targeted advertising.</p><p>Zuckerberg does not need another business line to get into. He is solely focused on making this current business model stronger. With this, he’s using the open-source community to carefully open-source the technology he needs to refine but does not want to pay to refine on his own. He knows what tools he needs to mine better gold (ad dollars) but requires the market to help bring them into existence.</p><p>Vox did a great piece on this last year when Meta released one of their first open-source models. Keep in mind, they have not open-sourced all of their data or algorithms. Meta did not open-source the training data they used for these models. They also have not open sourced the core ad-tech algorithm they use at Meta. This is intentional. They open-source the stuff they need refined, yet keep the tools they use to maintain an edge private. Genius.</p><h2 id=\"id_2663304143\">Earnings Expectations</h2><p>While the market was bearish after the last quarter, I believe Meta’s upcoming earnings expectations reveal low expectations. For the upcoming quarter (earnings come after the bell on Wednesday), the consensus EPS estimate stands at $4.78, reflecting a 60.27% year-over-year growth. Revenue projections for 2Q 2024 are expected to be around $38.28 billion, showing a 19.65% increase. Looking forward, revenue growth for the next few years is projected to maintain a conservative 10-12% year-over-year increase, with some years anticipated to be lower. I think this (in hindsight) will look really conservative.</p><p>While the market has started to revise up earnings expectations after the last quarter CapEx raise, I actually think that&#39;s a good thing. Some analysts are starting to understand what this open-source strategy can do for the company. I think once this becomes more obvious, the market will price it in, creating upward pressure on shares.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44ee506e4c868599a30dc68f6db50b66\" tg-width=\"1280\" tg-height=\"577\"/></p><p>Meta EPS Revisions (Seeking Alpha)</p><p></p><h2 id=\"id_2817764606\">Valuation</h2><p>The company&#39;s forward PEG ratio stands at 1.16, far below the sector median of 1.42, reflecting an -18.55% discount. I believe this indicates that some investors are skeptical about Meta&#39;s ability to achieve their projected EPS growth rates, despite strong historical performance. Some investors believe that these large CapEx projects will drag performance more than the analyst numbers indicate. I think this means the market hasn’t priced in the AI strategy.</p><p>Despite these reservations, I believe Meta is well-positioned to exceed these growth expectations. The company&#39;s open-source strategy is anticipated by the developer community so they can enhance their technological capabilities. It’s cost-effective and can better accelerate innovation on Meta&#39;s behalf. It’s a win-win.</p><p>If Meta were to be valued at the sector median forward PEG ratio of 1.42, their stock would reflect a more accurate valuation based on their forward growth potential. Specifically, recalibrating Meta&#39;s stock to align with the sector median forward PEG ratio represents an approximate 22.41% increase from current levels. It’s a good upside for a company that, I think, has a best-in-class AI strategy.</p><h2 id=\"id_3392520678\">Risks</h2><p>Meta’s business model is based mainly on ad sales on their platforms. Ad sales are dependent on the economy. I believe the U.S. economy has shown signs of slowing down, with GDP growth decelerating and consumer spending tightening (the earnings report today from McDonald&#39;s also shows this).</p><p>When consumers cut back on spending, companies typically reduce their advertising budgets to conserve cash, which results in a downturn in ad revenue for platforms reliant on advertising, such as Meta, despite their strong positioning and innovative strategies. The company is not immune to these macroeconomic trends, as revenue slumped in 2022 as ad dollars got tighter. The cautious economic environment, coupled with higher interest rates and tighter consumer budgets, may hammer Meta as they meet these economic headwinds.</p><p>The company’s heavy reliance on an advertising-based revenue model also exposes the company to risks. As economic conditions fluctuate, so does consumer spending, which directly impacts advertising budgets. During economic slowdowns, companies often reduce their ad expenditures, which can lead to substantial revenue shortfalls for Meta.</p><p>Meta also continues to face antitrust risks, particularly from the European Union. Earlier this month, the European Commission signaled their intent to issue a substantial fine against Meta for allegedly abusing their market dominance by tying their Facebook Marketplace service to the Facebook platform.</p><p>I think Meta&#39;s open-source strategy actually provides a strong defense against both of these headwinds. Open-source is a good way to show that they foster innovation and transparency, which can counteract claims of market dominance and unfair practices.</p><p>Their ad network also benefits from their open-source AI strategy, as these model innovations help them serve ads far better than other ad networks, meaning they can grab market share even in a hypothetical ad market slowdown.</p><h2 id=\"id_2361789377\">Bottom Line</h2><p>Meta has emerged as a strong leader in AI, driven by their open-source strategy with models like Llama 3.1. While shares have underperformed due to investor concerns over substantial CapEx, these investments are already yielding innovations that won’t translate into dollars directly, but help the company do what they do best. Given the company&#39;s forward PEG ratio is below the sector median, I believe this indicates market skepticism about future EPS growth. This presents an opportunity.</p><p>Given the company&#39;s robust open-source strategy, AI advancements, and potential for exceeding growth expectations, I think Meta&#39;s shares remain a strong buy going into earnings.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meta Q2 Earnings Preview: Best AI Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeta Q2 Earnings Preview: Best AI Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-30 11:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0234572021.USD":"高盛美国核心股票组合Acc","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A","BK4561":"索罗斯持仓","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4581":"高盛持仓","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4529":"IDC概念","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4592":"伊斯兰概念","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","BK4585":"ETF&股票定投概念","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4507":"流媒体概念","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","META":"Meta Platforms, Inc.","BK4587":"ChatGPT概念","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","BK4524":"宅经济概念","LU0072462426.USD":"贝莱德全球配置 A2","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","BK4543":"AI","BK4527":"明星科技股","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","BK4077":"互动媒体与服务","LU0056508442.USD":"贝莱德世界科技基金A2","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0080751232.USD":"富达环球多元动力基金A","BK4588":"碎股","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","BK4141":"半导体产品","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","BK4503":"景林资产持仓"},"source_url":"https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455697789","content_text":"Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage advanced AI capabilities, leading to industry-standard adoption with key partners like Amazon and Nvidia.Despite investor concerns over CapEx, Meta's open-source strategy is expected to democratize AI access and drive innovation, making them a strong AI stock investment.Their AI strategy allows Meta to benefit from market innovations without having to pay for expensive R&D.I think the stock is set up well going into Q2 earnings Wednesday.Anna Moneymaker/Getty Images NewsInvestment ThesisAs the AI revolution approaches its two-year mark (kicked-off with the launch of ChatGPT), I believe the real winners and losers are now starting to stand out. Meta Platforms, Inc. (NASDAQ:META), in my opinion, has emerged as a notable leader by betting heavily on their open-source AI models. Their Llama 3.1 model family, unveiled in this month, is touted to lead the industry because of their performance, open-source nature, and cost-efficiency, according to the company. I believe Meta has paved the way for a broader trend where enterprises can benefit from open-source, allowing collaboration to compete against closed, proprietary systems like OpenAI.The Llama 3.1 405B model is the first frontier-level open-source AI model (meaning it also beats closed models like OpenAI’s GPT 4o). It allows developers to leverage AI capabilities at a new level in various use cases, including for synthetic data generation and model distillation, which were previously unattainable at this scale in the open-source community.Their collaborations with key industry partners like Amazon (AMZN)’s AWS, Nvidia (NVDA), Databricks, and others has facilitated the integration of the model across platforms. It’s a wise ecosystem approach, in my opinion, because it ensures that Llama models become the industry standard. With Llama being the industry standard for those who want to control the weights of their models, this brings exceptional benefits to Meta.Heading into earnings on July 31st, I believe this new version of Llama is expected to democratize the public’s access to AI technology, especially for more developers and organizations to benefit from Meta’s advancements. The benefits for Meta themselves will be even greater than the benefits to developers.As the company encourages widespread adoption and model customization, the improvements and innovations that feed back into Meta’s own development pipeline. CEO Mark Zuckerberg has a history of open-sourcing software tools to have the marketplace refine them, and for his company to use them. His strategy mirrors the historical success of open-source software like Linux, which became an industry standard due to its modifiability and ecosystem.I am still a strong buy on Meta going into earnings. I believe this new strategy actually makes them the best AI stock investors can buy. Zuckerberg is playing a long game and leveraging the marketplace to accelerate innovation. I’m incredibly bullish.Why I'm Doing Follow-Up CoverageSince my last update, Meta's shares have underperformed the market due to growing investor concerns over their substantial capital expenditures (CapEx). Despite reporting a record 1Q 2024 revenue of $36.5 billion in April 2024, a 27% increase year-over-year, shares fell by more than 15% following the announcement of increased spending on AI infrastructure. I think this is incredibly misguided.Meta's aggressive CapEx plans, projected to reach $35-40 billion, aim to enhance their AI capabilities and support the development of advanced models like Llama 3.1.After last quarter, Investors became uneasy, fearing that the high costs might not yield immediate returns. The market's swift reaction reflects skepticism about the long-term payoffs of these investments. I think investors need to actually understand that the way Meta will benefit from these models is not through direct AI monetization like other AI giants are trying to do. They are trying to use the market to get free innovation. Meta is cutting their effective R&D costs for tools they know they need internally, and they know will make them money if they are created and leveraged to make the world's largest social media company bigger. This is genius.Zuckerberg has defended the heightened CapEx, and emphasized that massive investments in AI are crucial for maintaining competitive edge and driving innovation across Meta’s platforms, including Facebook, Instagram, and WhatsApp. He acknowledged the necessity of these expenditures to support AI advancements that could eventually enhance ad targeting and user engagement.Zuckerberg’s strategy to enhance Meta’s AI infrastructure involves perfecting every layer of their stack, as Meta itself has reported. This helps ensure that Meta can handle the demands of large-scale model training to keep their AI services highly efficient and market leading. I’m writing this follow-up to show how the company is really one of the best AI plays through this open-source strategy and what it means for investors.What Is Meta's AI Strategy?Meta's open-source AI strategy has enabled the Llama 3.1 model series to outperform many closed-source models, according to the company. By expanding the context length to 128K and supporting eight languages, the Llama 3.1 models cater to a broader range of advanced use cases such as long-form text summarization, multilingual conversational agents, and coding assistants. It’s clear that Meta capitalizes on the growing demand for more capable and versatile AI tools.Zuckerberg has a history of open-sourcing AI tools, which has accelerated the development and adoption of these technologies. For example, the release of the DINOv2 model, which performs advanced visual tasks, and the open-source animated drawings dataset have provided valuable resources for researchers and developers. As these tools were refined and placed back into the public, so others could leverage them, Meta has been able to use these refined tools (refined by millions of developers with new, cutting-edge perspectives).While most businesses are trying to expand their business lines and break into new industries, Zuckerberg already commands this highly profitable ad placement system through Meta’s family of social media platforms. I often referred to as a “money printer,” due to its ability to generate exceptional returns for customers who place ads on the platform and for Meta itself through their targeted advertising.Zuckerberg does not need another business line to get into. He is solely focused on making this current business model stronger. With this, he’s using the open-source community to carefully open-source the technology he needs to refine but does not want to pay to refine on his own. He knows what tools he needs to mine better gold (ad dollars) but requires the market to help bring them into existence.Vox did a great piece on this last year when Meta released one of their first open-source models. Keep in mind, they have not open-sourced all of their data or algorithms. Meta did not open-source the training data they used for these models. They also have not open sourced the core ad-tech algorithm they use at Meta. This is intentional. They open-source the stuff they need refined, yet keep the tools they use to maintain an edge private. Genius.Earnings ExpectationsWhile the market was bearish after the last quarter, I believe Meta’s upcoming earnings expectations reveal low expectations. For the upcoming quarter (earnings come after the bell on Wednesday), the consensus EPS estimate stands at $4.78, reflecting a 60.27% year-over-year growth. Revenue projections for 2Q 2024 are expected to be around $38.28 billion, showing a 19.65% increase. Looking forward, revenue growth for the next few years is projected to maintain a conservative 10-12% year-over-year increase, with some years anticipated to be lower. I think this (in hindsight) will look really conservative.While the market has started to revise up earnings expectations after the last quarter CapEx raise, I actually think that's a good thing. Some analysts are starting to understand what this open-source strategy can do for the company. I think once this becomes more obvious, the market will price it in, creating upward pressure on shares.Meta EPS Revisions (Seeking Alpha)ValuationThe company's forward PEG ratio stands at 1.16, far below the sector median of 1.42, reflecting an -18.55% discount. I believe this indicates that some investors are skeptical about Meta's ability to achieve their projected EPS growth rates, despite strong historical performance. Some investors believe that these large CapEx projects will drag performance more than the analyst numbers indicate. I think this means the market hasn’t priced in the AI strategy.Despite these reservations, I believe Meta is well-positioned to exceed these growth expectations. The company's open-source strategy is anticipated by the developer community so they can enhance their technological capabilities. It’s cost-effective and can better accelerate innovation on Meta's behalf. It’s a win-win.If Meta were to be valued at the sector median forward PEG ratio of 1.42, their stock would reflect a more accurate valuation based on their forward growth potential. Specifically, recalibrating Meta's stock to align with the sector median forward PEG ratio represents an approximate 22.41% increase from current levels. It’s a good upside for a company that, I think, has a best-in-class AI strategy.RisksMeta’s business model is based mainly on ad sales on their platforms. Ad sales are dependent on the economy. I believe the U.S. economy has shown signs of slowing down, with GDP growth decelerating and consumer spending tightening (the earnings report today from McDonald's also shows this).When consumers cut back on spending, companies typically reduce their advertising budgets to conserve cash, which results in a downturn in ad revenue for platforms reliant on advertising, such as Meta, despite their strong positioning and innovative strategies. The company is not immune to these macroeconomic trends, as revenue slumped in 2022 as ad dollars got tighter. The cautious economic environment, coupled with higher interest rates and tighter consumer budgets, may hammer Meta as they meet these economic headwinds.The company’s heavy reliance on an advertising-based revenue model also exposes the company to risks. As economic conditions fluctuate, so does consumer spending, which directly impacts advertising budgets. During economic slowdowns, companies often reduce their ad expenditures, which can lead to substantial revenue shortfalls for Meta.Meta also continues to face antitrust risks, particularly from the European Union. Earlier this month, the European Commission signaled their intent to issue a substantial fine against Meta for allegedly abusing their market dominance by tying their Facebook Marketplace service to the Facebook platform.I think Meta's open-source strategy actually provides a strong defense against both of these headwinds. Open-source is a good way to show that they foster innovation and transparency, which can counteract claims of market dominance and unfair practices.Their ad network also benefits from their open-source AI strategy, as these model innovations help them serve ads far better than other ad networks, meaning they can grab market share even in a hypothetical ad market slowdown.Bottom LineMeta has emerged as a strong leader in AI, driven by their open-source strategy with models like Llama 3.1. While shares have underperformed due to investor concerns over substantial CapEx, these investments are already yielding innovations that won’t translate into dollars directly, but help the company do what they do best. Given the company's forward PEG ratio is below the sector median, I believe this indicates market skepticism about future EPS growth. This presents an opportunity.Given the company's robust open-source strategy, AI advancements, and potential for exceeding growth expectations, I think Meta's shares remain a strong buy going into earnings.","news_type":1},"isVote":1,"tweetType":1,"viewCount":178,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333027582419072,"gmtCreate":1722333452407,"gmtModify":1722333454544,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333027582419072","repostId":"2455578296","repostType":2,"repost":{"id":"2455578296","pubTimestamp":1722241987,"share":"https://ttm.financial/m/news/2455578296?lang=&edition=fundamental","pubTime":"2024-07-29 16:33","market":"us","language":"en","title":"CrowdStrike: Here's The Price I Will Buy After Major Outage","url":"https://stock-news.laohu8.com/highlight/detail?id=2455578296","media":"Seeking Alpha","summary":"I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash else","content":"<html><head></head><body><ul style=\"\"><li><p>CrowdStrike caused major disruptions last week in several industries.</p></li><li><p>Flights, surgeries, and banks were affected, highlighting CrowdStrike&#39;s importance.</p></li><li><p>The drop in the stock price is an opportunity, but patience could be rewarded as fallout may continue.</p></li><li><p>Below, I outline the long-term case and my short-term target price for initiating a large position.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5f4bee6c935e86c8d9891d0e876d9724\" alt=\"baona/iStock via Getty Images\" title=\"baona/iStock via Getty Images\" tg-width=\"750\" tg-height=\"592\"/><span>baona/iStock via Getty Images</span></p><p>Flights were postponed, surgeries canceled, and banks disrupted. In all, 8.5 million Microsoft (MSFT) Windows devices were affected. This was all because of what CrowdStrike (NASDAQ:CRWD) called a “defect in a single content update.” Congress is calling on CEO George Kurtz to testify before a subcommittee, although we don&#39;t know when.</p><p>This was easily the worst week in CrowdStrike&#39;s history.</p><p>The stock dropped off a cliff, going from a record high near $400 to $250 per share, an epic 38% drop. The price-to-sales ratio fell from a nosebleed level to a more modest valuation, as shown below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4192606d75c6421ccc6705e52b638287\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"491\"/><span>Data by YCharts</span></p><p><strong>The question for investors is significant: Is this a terrific opportunity to buy shares or a stock doomed to continue falling?</strong></p><h2 id=\"id_431956589\">Is CrowdStrike&#39;s epic rise over?</h2><p>I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.</p><p>I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash elsewhere when the stock reached what I considered fair value.</p><p>With the Nasdaq bumping against all-time highs, CrowdStrike&#39;s price-to-sales ratio crept near 30. This is high even for a terrific company running on all cylinders. Especially as CrowdStrike exhausted the large corporate market and turned its strategy to small and medium-sized businesses ((SMBs)). SMBs are a fertile market but likely less profitable than Fortune 500 customers.</p><p>There is panic in the air after last week&#39;s disaster. But those panicking out of the stock may be missing something important: If a single ill-advised CrowdStrike software update can wreak such havoc, CrowdStrike must be an extremely important company.</p><h2 id=\"id_3470447983\">Is CrowdStrike going to recover?</h2><p>The same thing that made CrowdStrike attractive before the current problem is what makes it attractive now: Excellent results.</p><p>CrowdStrike is a global leader in the critical market of endpoint security. According to <a href=\"https://laohu8.com/S/IBM\">IBM</a> (IBM), most damaging cyberattacks result from endpoint protection failures. CrowdStrike&#39;s Falcon platform is entirely cloud-based and modular, and revenue is recurring through subscriptions - all positives for CrowdStrike investors.</p><p>Annual recurring revenue (ARR) tripled over the last three years and grew 33% in Q1 FY25, year-over-year (YOY), as depicted below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/0449acb6121246f4dd8c712ac64677c4\" alt=\"Source: CrowdStrike. Chart by the author.\" title=\"Source: CrowdStrike. Chart by the author.\" tg-width=\"640\" tg-height=\"254\"/><span>Source: CrowdStrike. Chart by the author.</span></p><p>Its land-and-expand strategy is working, with 65% of customers using at least five modules, 44% using six or more, and eight-module deals growing 95% YOY in Q1 FY25. When existing customers purchase additional modules, operating leverage (profitability) increases, which shows up in long-term trends.</p><p>On a non-GAAP basis, CrowdStrike reported an operating margin of 22% in Q1 FY, up from 17% the prior year. The non-GAAP results eliminate stock-based compensation and amortization of intangible assets like patents and goodwill.</p><p>The company also achieved GAAP operating income recently, as shown below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed8a2f1dea934d6d39723cb019d5232\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"491\"/><span>Data by YCharts</span></p><p>More importantly, free cash flow (FCF) continues to flourish, rising 42% in Q1 FY25 on an impressive 35% margin. CrowdStrike reported more than $1 billion FCF and a margin of over 30% over the past twelve months.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/181779ee127474435e79303d37b4c3b6\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"439\"/><span>Data by YCharts</span></p><p>Because of the prolific cash generation, CrowdStrike amassed a cash hoard of $3.7 billion against $740 million in long-term debt. This allows the company to fund growth and make strategic acquisitions. The company should also consider a share buyback program now that the stock has cratered, although not until the fervor dies down. This will shore up investor confidence and offset the effects of stock-based compensation.</p><h2 id=\"id_2394619571\">Is CrowdStrike stock a buy now?</h2><p>The financial effects of the shutdown will affect CrowdStrike&#39;s results in Q3 FY25 since Q2 FY25, which ends July 31st, was mostly in books when it took place. The company could see fewer deals close now as companies could be reluctant to sign contracts so soon after a major breakdown. Testifying before Congress could also damage CrowdStrike&#39;s reputation; however, I expect both to be short-lived. This was not a breach, and memories are short in the era of the 24-hour news cycle.</p><p>Still, the stock trades near 20 times sales with a $62 billion market cap, which isn&#39;t a significant discount given the short-term risks. When CrowdStrike reports Q2 results, all eyes will be on guidance to determine the extent of the damage.</p><p>While I have nibbled around $250 per share, I will only initiate a significant position if the valuation reaches 16 times sales, a $53 billion market cap, and a share price near $215. Given the company&#39;s focus on achieving $5 billion in ARR by the end of fiscal 2026, this will be an absolute steal.</p><p>Investors should consider the flip side of last week&#39;s failure: CrowdStrike is essential to many systems; few can replace it, and the switching costs are high. For this reason, the massive drop could be a tremendous opportunity for investors - but perhaps not quite yet.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CrowdStrike: Here's The Price I Will Buy After Major Outage</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCrowdStrike: Here's The Price I Will Buy After Major Outage\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-29 16:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CrowdStrike caused major disruptions last week in several industries.Flights, surgeries, and banks were affected, highlighting CrowdStrike's importance.The drop in the stock price is an opportunity, ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","BK4592":"伊斯兰概念","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU1880398471.USD":"AMUNDI FUNDS GLOBAL EQUITY \"A2\" (USD) ACC","BK4534":"瑞士信贷持仓","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","LU1883839398.USD":"AMUNDI FUNDS INCOME OPPORTUNITIES \"A2\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","BK4587":"ChatGPT概念","BK4525":"远程办公概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU2272731782.SGD":"Allianz Global Intelligent Cities AM Dis H2-SGD","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4550":"红杉资本持仓","BK4579":"人工智能","LU2272731600.USD":"Allianz Global Intelligent Cities AM Dis USD","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","LU1992135472.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES \"AT\" (HKD) ACC","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4097":"系统软件","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","BK4581":"高盛持仓","BK4504":"桥水持仓","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","CRWD":"CrowdStrike Holdings, Inc.","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H"},"source_url":"https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455578296","content_text":"CrowdStrike caused major disruptions last week in several industries.Flights, surgeries, and banks were affected, highlighting CrowdStrike's importance.The drop in the stock price is an opportunity, but patience could be rewarded as fallout may continue.Below, I outline the long-term case and my short-term target price for initiating a large position.baona/iStock via Getty ImagesFlights were postponed, surgeries canceled, and banks disrupted. In all, 8.5 million Microsoft (MSFT) Windows devices were affected. This was all because of what CrowdStrike (NASDAQ:CRWD) called a “defect in a single content update.” Congress is calling on CEO George Kurtz to testify before a subcommittee, although we don't know when.This was easily the worst week in CrowdStrike's history.The stock dropped off a cliff, going from a record high near $400 to $250 per share, an epic 38% drop. The price-to-sales ratio fell from a nosebleed level to a more modest valuation, as shown below.Data by YChartsThe question for investors is significant: Is this a terrific opportunity to buy shares or a stock doomed to continue falling?Is CrowdStrike's epic rise over?I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash elsewhere when the stock reached what I considered fair value.With the Nasdaq bumping against all-time highs, CrowdStrike's price-to-sales ratio crept near 30. This is high even for a terrific company running on all cylinders. Especially as CrowdStrike exhausted the large corporate market and turned its strategy to small and medium-sized businesses ((SMBs)). SMBs are a fertile market but likely less profitable than Fortune 500 customers.There is panic in the air after last week's disaster. But those panicking out of the stock may be missing something important: If a single ill-advised CrowdStrike software update can wreak such havoc, CrowdStrike must be an extremely important company.Is CrowdStrike going to recover?The same thing that made CrowdStrike attractive before the current problem is what makes it attractive now: Excellent results.CrowdStrike is a global leader in the critical market of endpoint security. According to IBM (IBM), most damaging cyberattacks result from endpoint protection failures. CrowdStrike's Falcon platform is entirely cloud-based and modular, and revenue is recurring through subscriptions - all positives for CrowdStrike investors.Annual recurring revenue (ARR) tripled over the last three years and grew 33% in Q1 FY25, year-over-year (YOY), as depicted below.Source: CrowdStrike. Chart by the author.Its land-and-expand strategy is working, with 65% of customers using at least five modules, 44% using six or more, and eight-module deals growing 95% YOY in Q1 FY25. When existing customers purchase additional modules, operating leverage (profitability) increases, which shows up in long-term trends.On a non-GAAP basis, CrowdStrike reported an operating margin of 22% in Q1 FY, up from 17% the prior year. The non-GAAP results eliminate stock-based compensation and amortization of intangible assets like patents and goodwill.The company also achieved GAAP operating income recently, as shown below.Data by YChartsMore importantly, free cash flow (FCF) continues to flourish, rising 42% in Q1 FY25 on an impressive 35% margin. CrowdStrike reported more than $1 billion FCF and a margin of over 30% over the past twelve months.Data by YChartsBecause of the prolific cash generation, CrowdStrike amassed a cash hoard of $3.7 billion against $740 million in long-term debt. This allows the company to fund growth and make strategic acquisitions. The company should also consider a share buyback program now that the stock has cratered, although not until the fervor dies down. This will shore up investor confidence and offset the effects of stock-based compensation.Is CrowdStrike stock a buy now?The financial effects of the shutdown will affect CrowdStrike's results in Q3 FY25 since Q2 FY25, which ends July 31st, was mostly in books when it took place. The company could see fewer deals close now as companies could be reluctant to sign contracts so soon after a major breakdown. Testifying before Congress could also damage CrowdStrike's reputation; however, I expect both to be short-lived. This was not a breach, and memories are short in the era of the 24-hour news cycle.Still, the stock trades near 20 times sales with a $62 billion market cap, which isn't a significant discount given the short-term risks. When CrowdStrike reports Q2 results, all eyes will be on guidance to determine the extent of the damage.While I have nibbled around $250 per share, I will only initiate a significant position if the valuation reaches 16 times sales, a $53 billion market cap, and a share price near $215. Given the company's focus on achieving $5 billion in ARR by the end of fiscal 2026, this will be an absolute steal.Investors should consider the flip side of last week's failure: CrowdStrike is essential to many systems; few can replace it, and the switching costs are high. For this reason, the massive drop could be a tremendous opportunity for investors - but perhaps not quite yet.","news_type":1},"isVote":1,"tweetType":1,"viewCount":114,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333026029539464,"gmtCreate":1722333075243,"gmtModify":1722333077230,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333026029539464","repostId":"2455696357","repostType":2,"repost":{"id":"2455696357","pubTimestamp":1722311234,"share":"https://ttm.financial/m/news/2455696357?lang=&edition=fundamental","pubTime":"2024-07-30 11:47","market":"sh","language":"en","title":"Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated","url":"https://stock-news.laohu8.com/highlight/detail?id=2455696357","media":"seekingalpha","summary":"Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up de","content":"<html><head></head><body><ul style=\"\"><li><p>Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.</p></li><li><p>The market focused on declining vehicle shipments, which may be an indication of pent-up demand as Tesla looks to release its Robotaxi in October and the next-gen Model 3 in 2025.</p></li><li><p>Meanwhile, the energy business doubled y/y in Q3 as sales of Powerwall and Megapack took off, and is contributing generously to the company&#39;s gross profit and overall profitability.</p></li><li><p>Tesla remains modestly valued at the mid-30s adjusted EBITDA multiple, considering it still represents a very low market share of global vehicle sales.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/de56f24fb1f9cb925118398f30446d4c\" tg-width=\"750\" tg-height=\"500\"/></p><p>ollo</p><p></p><p>Q2 earnings season is well underway, and <strong>Tesla, Inc.</strong> (NASDAQ:TSLA) has been one of the biggest disappointments so far. The world&#39;s largest electric vehicle maker remains down double-digits year to date, with shares falling nearly 20% from near-term peaks after posting lackluster Q2 results.</p><p>Investors focused on one thing and one thing only: declining vehicle production and deliveries, and weaker automotive revenue. But in my view, investors who have a longer-term perspective on Tesla have the opportunity to buy this dip at an attractive discount.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f6999c5d42da6b225d6b1995e47006e2\" tg-width=\"635\" tg-height=\"424\"/></p><p>Data by YCharts</p><p></p><p>I last wrote a bullish note on Tesla in June, before the company&#39;s Q2 results and when the stock was trading at ~$175 per share. Despite the weaker production statistics in Q2 and the slightly higher share price since my last note, I am retaining my <strong>buy</strong> call on this stock. Tesla remains one of my core long-term holdings and a stock that I think still has plenty of runway to go. Investors who are stuck on the company&#39;s latest quarterly results and the volatility of its shipment metrics, in my view, are &#34;missing the point&#34; of this transformational company that is set to not only electrify global driving, but automate it as well.</p><h2 id=\"id_4182039805\">Decline in vehicle deliveries are less meaningful when Tesla is approaching major product releases</h2><p>Let&#39;s start with the biggest elephant in the room: declining vehicle shipments, which is the main reason that Tesla slid sharply after reporting Q2 results.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/54065cf69253531112f8848ba42e2997\" tg-width=\"640\" tg-height=\"274\"/></p><p>Tesla vehicle metrics (Tesla Q2 earnings deck)</p><p></p><p>Total production in Q2 declined -14% y/y to 410.8k units, while total deliveries declined -5% y/y to 444.0k units. Model 3/Y deliveries declined -5% y/y, while the other models (S and X) grew 12% y/y.</p><p>To me, these volatile intra-quarter shipment figures are not indicative of Tesla&#39;s long-term potential, <strong>especially when it&#39;s approaching two major product launches.</strong> The company pushed back its Robotaxi product announcement to October 10th of this year (the fully self-driving version of its vehicle, a wholly integrated car whose software represents a vast improvement over current FSD capabilities which are currently available as a software add-on to existing vehicles). At the same time, it also pulled in the announcement of its next-gen mass-market vehicles sometime in the first half of 2025.</p><p>The fact that it was Model 3 and Y deliveries that fell y/y is especially telling. Unlike smartphones, Tesla is not on a predictable, every-year product cadence. Thus, it makes plenty of sense that <strong>buyers are holding out and waiting for the next model to be released, especially as Elon Musk has strongly hinted that the newer vehicles will be even more affordable than the current generation.</strong></p><p>So, in other words, we shouldn&#39;t penalize Tesla too harshly for weaker near-term results that may be building anticipation for the next wave of vehicles.</p><h2 id=\"id_883917672\">Gross margin continues to recover</h2><p>Another major positive point that was largely overlooked in Tesla&#39;s second-quarter earnings in light of the deliveries decline: the company continued to see stabilization in gross margins.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8aa8826400393d44ea734a6a905f7ba9\" tg-width=\"640\" tg-height=\"330\"/></p><p>Tesla trended financials (Tesla Q2 earnings deck)</p><p></p><p>As shown in the chart above, Tesla&#39;s GAAP gross margins slid up to 18.0%, <strong>an improvement of 0.6% sequentially (though down -0.2% y/y).</strong> It&#39;s the highest GAAP gross margin in four quarters, which is a major relief after so much negative press over Tesla&#39;s ongoing price cuts.</p><p>We note as well that operating margins <strong>improved 0.8%</strong> sequentially versus Q1, even better than the gross margin improvement. In my view, if we&#39;re looking ahead to revenue growth in FY25 powered by new vehicles and pent-up demand, we may have reached Tesla&#39;s trough in profitability.</p><h2 id=\"id_1949681011\">Energy is driving fantastic growth</h2><p>For much of Tesla&#39;s history as a public company, investors have largely treated the company&#39;s non-automotive segments as non-core, the same way that investors barely care about Alphabet Inc.&#39;s (GOOG) (GOOGL) &#34;Other Bets.&#34;</p><p>But in Q2, Tesla&#39;s energy subsidiary (which consists of its Powerwall at-home energy storage station, and its commercial Megapack) was a much more meaningful contributor. Despite a -5% y/y decline in vehicle shipments and a -7% y/y decline in automotive revenue, <strong>Tesla&#39;s total revenue grew 2% y/y to $25.50 billion, beating Wall Street&#39;s expectations of $24.76 (-1% y/y).</strong></p><p>The contributor behind the beat was the energy segment, which achieved <strong>100% y/y growth in revenue</strong> to $3.0 billion, or 12% of Tesla&#39;s total.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/379d04408134cf0d4c3dc1ed7d784f87\" tg-width=\"640\" tg-height=\"348\"/></p><p>Tesla energy segment highlights (Tesla Q2 earnings deck)</p><p></p><p>The company notes that Megapack and Powerwall have reached a record 9.4 GWh of deployments. Gross profit from the non-automotive segment also reached nearly $1 billion, as shown in the chart above (versus $4.6 billion in total Tesla gross profit dollars), which is a much more meaningful share than revenue. Moreover, the company notes that Energy still has a strong backlog of open orders. Per CFO Vaibhav Taneja&#39;s remarks on the Q2 earnings call:</p><blockquote><p>We previously talked about the potential of the energy business and now feel excited that the foundation that was made over time is bearing the expected results. Energy storage deployments more than doubled with contributions not just from Megapack but also Powerwall, resulting in record revenues and profit for the energy business.</p><p>Energy storage backlog is strong. As discussed before, deployments will fluctuate from period to period with some quarters seeing large increases and others seeing a decline. Recognition of storage gigawatt hours is dependent on a variety of factors, including logistics timing, as we send units from a single factory to markets across the world, customer readiness, and in the case of EPC projects on construction activities. Moving on to the other parts of the business, service and other gross profits also improved sequentially from the improvement in service utilization and growth in our collision repair business.&#34;</p></blockquote><p>Again, I think the massive growth in energy revenue and sharp improvements in profitability were vastly overlooked by investors in light of weaker vehicle shipments - but longer term, this business will continue to drive incredible operating leverage for Tesla.</p><h2 id=\"id_2107811449\">Risks, valuation, and key takeaways</h2><p>Of course, Tesla is not without its risks. The global macroeconomy, particularly in markets like Europe and Asia, continues to send weak signals that are delaying many big-ticket purchases like cars; and moreover, Tesla&#39;s rivals continue to multiply overseas.</p><p>At the same time, however, it&#39;s difficult to argue against Tesla, which is the leader in the EV pack with the greatest installed market share and still tremendous greenfield market opportunity to convert gas vehicle drivers into Tesla owners.</p><p>From a valuation perspective: at current share prices near $220, Tesla trades at a market cap of $688.74 billion. After we net off the $30.72 billion of cash and $7.75 billion of debt on Tesla&#39;s most recent balance sheet, its resulting <strong>enterprise value is $665.77 billion.</strong></p><p>Tesla&#39;s TTM adjusted EBITDA margin has clocked in at 15.5%. If we conservatively assume no margin leverage going forward on FY25 consensus revenue expectations of $116.1 billion (+17% y/y), FY25 adjusted EBITDA would be $18.00 billion - putting Tesla&#39;s valuation at <strong>37.0x EV/FY25 adjusted EBITDA.</strong></p><p>This is certainly no value stock. But, for a company that is set to release major market-leading products this year and next, and when electric vehicles are still less than 20% of the global vehicle market, I&#39;d still say Tesla is at a very reasonable entry point.</p><p>Stay long here and use the dip as a buying opportunity.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-30 11:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0251142724.SGD":"Fidelity America A-SGD","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0203202063.USD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"A2X\" (USD) ACC","BK4527":"明星科技股","BK4538":"云计算","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","BK4579":"人工智能","BK4588":"碎股","BK4550":"红杉资本持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4503":"景林资产持仓","BK4574":"无人驾驶","LU0861579265.USD":"联博低波幅策略股票基金A","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4551":"寇图资本持仓","BK4573":"虚拟现实","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","BK4581":"高盛持仓","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4099":"汽车制造商","BK4511":"特斯拉概念","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0056508442.USD":"贝莱德世界科技基金A2","TSLA":"特斯拉","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","BK4507":"流媒体概念","BK4555":"新能源车","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4566":"资本集团","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4587":"ChatGPT概念"},"source_url":"https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455696357","content_text":"Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up demand as Tesla looks to release its Robotaxi in October and the next-gen Model 3 in 2025.Meanwhile, the energy business doubled y/y in Q3 as sales of Powerwall and Megapack took off, and is contributing generously to the company's gross profit and overall profitability.Tesla remains modestly valued at the mid-30s adjusted EBITDA multiple, considering it still represents a very low market share of global vehicle sales.olloQ2 earnings season is well underway, and Tesla, Inc. (NASDAQ:TSLA) has been one of the biggest disappointments so far. The world's largest electric vehicle maker remains down double-digits year to date, with shares falling nearly 20% from near-term peaks after posting lackluster Q2 results.Investors focused on one thing and one thing only: declining vehicle production and deliveries, and weaker automotive revenue. But in my view, investors who have a longer-term perspective on Tesla have the opportunity to buy this dip at an attractive discount.Data by YChartsI last wrote a bullish note on Tesla in June, before the company's Q2 results and when the stock was trading at ~$175 per share. Despite the weaker production statistics in Q2 and the slightly higher share price since my last note, I am retaining my buy call on this stock. Tesla remains one of my core long-term holdings and a stock that I think still has plenty of runway to go. Investors who are stuck on the company's latest quarterly results and the volatility of its shipment metrics, in my view, are \"missing the point\" of this transformational company that is set to not only electrify global driving, but automate it as well.Decline in vehicle deliveries are less meaningful when Tesla is approaching major product releasesLet's start with the biggest elephant in the room: declining vehicle shipments, which is the main reason that Tesla slid sharply after reporting Q2 results.Tesla vehicle metrics (Tesla Q2 earnings deck)Total production in Q2 declined -14% y/y to 410.8k units, while total deliveries declined -5% y/y to 444.0k units. Model 3/Y deliveries declined -5% y/y, while the other models (S and X) grew 12% y/y.To me, these volatile intra-quarter shipment figures are not indicative of Tesla's long-term potential, especially when it's approaching two major product launches. The company pushed back its Robotaxi product announcement to October 10th of this year (the fully self-driving version of its vehicle, a wholly integrated car whose software represents a vast improvement over current FSD capabilities which are currently available as a software add-on to existing vehicles). At the same time, it also pulled in the announcement of its next-gen mass-market vehicles sometime in the first half of 2025.The fact that it was Model 3 and Y deliveries that fell y/y is especially telling. Unlike smartphones, Tesla is not on a predictable, every-year product cadence. Thus, it makes plenty of sense that buyers are holding out and waiting for the next model to be released, especially as Elon Musk has strongly hinted that the newer vehicles will be even more affordable than the current generation.So, in other words, we shouldn't penalize Tesla too harshly for weaker near-term results that may be building anticipation for the next wave of vehicles.Gross margin continues to recoverAnother major positive point that was largely overlooked in Tesla's second-quarter earnings in light of the deliveries decline: the company continued to see stabilization in gross margins.Tesla trended financials (Tesla Q2 earnings deck)As shown in the chart above, Tesla's GAAP gross margins slid up to 18.0%, an improvement of 0.6% sequentially (though down -0.2% y/y). It's the highest GAAP gross margin in four quarters, which is a major relief after so much negative press over Tesla's ongoing price cuts.We note as well that operating margins improved 0.8% sequentially versus Q1, even better than the gross margin improvement. In my view, if we're looking ahead to revenue growth in FY25 powered by new vehicles and pent-up demand, we may have reached Tesla's trough in profitability.Energy is driving fantastic growthFor much of Tesla's history as a public company, investors have largely treated the company's non-automotive segments as non-core, the same way that investors barely care about Alphabet Inc.'s (GOOG) (GOOGL) \"Other Bets.\"But in Q2, Tesla's energy subsidiary (which consists of its Powerwall at-home energy storage station, and its commercial Megapack) was a much more meaningful contributor. Despite a -5% y/y decline in vehicle shipments and a -7% y/y decline in automotive revenue, Tesla's total revenue grew 2% y/y to $25.50 billion, beating Wall Street's expectations of $24.76 (-1% y/y).The contributor behind the beat was the energy segment, which achieved 100% y/y growth in revenue to $3.0 billion, or 12% of Tesla's total.Tesla energy segment highlights (Tesla Q2 earnings deck)The company notes that Megapack and Powerwall have reached a record 9.4 GWh of deployments. Gross profit from the non-automotive segment also reached nearly $1 billion, as shown in the chart above (versus $4.6 billion in total Tesla gross profit dollars), which is a much more meaningful share than revenue. Moreover, the company notes that Energy still has a strong backlog of open orders. Per CFO Vaibhav Taneja's remarks on the Q2 earnings call:We previously talked about the potential of the energy business and now feel excited that the foundation that was made over time is bearing the expected results. Energy storage deployments more than doubled with contributions not just from Megapack but also Powerwall, resulting in record revenues and profit for the energy business.Energy storage backlog is strong. As discussed before, deployments will fluctuate from period to period with some quarters seeing large increases and others seeing a decline. Recognition of storage gigawatt hours is dependent on a variety of factors, including logistics timing, as we send units from a single factory to markets across the world, customer readiness, and in the case of EPC projects on construction activities. Moving on to the other parts of the business, service and other gross profits also improved sequentially from the improvement in service utilization and growth in our collision repair business.\"Again, I think the massive growth in energy revenue and sharp improvements in profitability were vastly overlooked by investors in light of weaker vehicle shipments - but longer term, this business will continue to drive incredible operating leverage for Tesla.Risks, valuation, and key takeawaysOf course, Tesla is not without its risks. The global macroeconomy, particularly in markets like Europe and Asia, continues to send weak signals that are delaying many big-ticket purchases like cars; and moreover, Tesla's rivals continue to multiply overseas.At the same time, however, it's difficult to argue against Tesla, which is the leader in the EV pack with the greatest installed market share and still tremendous greenfield market opportunity to convert gas vehicle drivers into Tesla owners.From a valuation perspective: at current share prices near $220, Tesla trades at a market cap of $688.74 billion. After we net off the $30.72 billion of cash and $7.75 billion of debt on Tesla's most recent balance sheet, its resulting enterprise value is $665.77 billion.Tesla's TTM adjusted EBITDA margin has clocked in at 15.5%. If we conservatively assume no margin leverage going forward on FY25 consensus revenue expectations of $116.1 billion (+17% y/y), FY25 adjusted EBITDA would be $18.00 billion - putting Tesla's valuation at 37.0x EV/FY25 adjusted EBITDA.This is certainly no value stock. But, for a company that is set to release major market-leading products this year and next, and when electric vehicles are still less than 20% of the global vehicle market, I'd still say Tesla is at a very reasonable entry point.Stay long here and use the dip as a buying opportunity.","news_type":1},"isVote":1,"tweetType":1,"viewCount":144,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333019958116464,"gmtCreate":1722331850025,"gmtModify":1722331852062,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3582868904979568","idStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333019958116464","repostId":"2455751146","repostType":2,"repost":{"id":"2455751146","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1722320389,"share":"https://ttm.financial/m/news/2455751146?lang=&edition=fundamental","pubTime":"2024-07-30 14:19","market":"us","language":"en","title":"Ignore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market","url":"https://stock-news.laohu8.com/highlight/detail?id=2455751146","media":"Dow Jones","summary":"It's been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market's new, more stable posture could set up investors for further gains later this year.Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies' ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.Fortunately, for investors that big stumble hasn","content":"<html><head></head><body><p>It&#39;s been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market&#39;s new, more stable posture could set up investors for further gains later this year.</p><p>Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&amp;P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.</p><p>One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies&#39; ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.</p><p>Fortunately, for investors that big stumble hasn&#39;t led to talk of a bear market or even a correction. Instead, the word on Wall Street&#39;s lips has been &#34;rotation.&#34;</p><p>While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. &#34;A full-fledged bear market is unlikely,&#34; concluded a Bank of America Securities research note Monday. &#34;Rotation is where the action is.&#34;</p><p>The market&#39;s overall resilience shouldn&#39;t necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.</p><p>Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.</p><p>That&#39;s already started to happen. Just this month the Magnificent 7&#39;s share of the S&amp;P 500&#39;s total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that&#39;s much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.</p><p>A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps&#39;s share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.</p><p>How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&amp;P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&amp;P 500 option.</p><p>The lesson may seem obvious but it seems plenty of investors haven&#39;t learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&amp;P 500 funds that collectively hold more than $1.5 trillion. (To be fair it&#39;s likely some, although not all, investors who own S&amp;P 500 funds are institutions or pair them with separate small-cap ETFs.)</p><p>Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&amp;P 500 Equal Weight ETF, which downplays tech&#39;s role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like <a href=\"https://laohu8.com/S/VTWO\">Vanguard Russell 2000 ETF</a> or the <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Core S&amp;P Small-Cap ETF, which screens holdings for profitability.</p><p>Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it&#39;s unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren&#39;t too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ignore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIgnore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-30 14:19</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>It&#39;s been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market&#39;s new, more stable posture could set up investors for further gains later this year.</p><p>Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&amp;P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.</p><p>One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies&#39; ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.</p><p>Fortunately, for investors that big stumble hasn&#39;t led to talk of a bear market or even a correction. Instead, the word on Wall Street&#39;s lips has been &#34;rotation.&#34;</p><p>While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. &#34;A full-fledged bear market is unlikely,&#34; concluded a Bank of America Securities research note Monday. &#34;Rotation is where the action is.&#34;</p><p>The market&#39;s overall resilience shouldn&#39;t necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.</p><p>Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.</p><p>That&#39;s already started to happen. Just this month the Magnificent 7&#39;s share of the S&amp;P 500&#39;s total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that&#39;s much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.</p><p>A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps&#39;s share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.</p><p>How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&amp;P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&amp;P 500 option.</p><p>The lesson may seem obvious but it seems plenty of investors haven&#39;t learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&amp;P 500 funds that collectively hold more than $1.5 trillion. (To be fair it&#39;s likely some, although not all, investors who own S&amp;P 500 funds are institutions or pair them with separate small-cap ETFs.)</p><p>Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&amp;P 500 Equal Weight ETF, which downplays tech&#39;s role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like <a href=\"https://laohu8.com/S/VTWO\">Vanguard Russell 2000 ETF</a> or the <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Core S&amp;P Small-Cap ETF, which screens holdings for profitability.</p><p>Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it&#39;s unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren&#39;t too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"OEX":"标普100",".SPX":"S&P 500 Index","BK4559":"巴菲特持仓","BK4550":"红杉资本持仓","BK4588":"碎股","SSO":"两倍做多标普500ETF","SH":"标普500反向ETF","IVV":"标普500指数ETF","SPXU":"三倍做空标普500ETF","BK4581":"高盛持仓","BK4504":"桥水持仓","SPY":"标普500ETF","VOO":"Vanguard标普500ETF","OEF":"标普100指数ETF-iShares","UPRO":"三倍做多标普500ETF","SDS":"两倍做空标普500ETF","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2455751146","content_text":"It's been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market's new, more stable posture could set up investors for further gains later this year.Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies' ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.Fortunately, for investors that big stumble hasn't led to talk of a bear market or even a correction. Instead, the word on Wall Street's lips has been \"rotation.\"While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. \"A full-fledged bear market is unlikely,\" concluded a Bank of America Securities research note Monday. \"Rotation is where the action is.\"The market's overall resilience shouldn't necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.That's already started to happen. Just this month the Magnificent 7's share of the S&P 500's total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that's much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps's share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&P 500 option.The lesson may seem obvious but it seems plenty of investors haven't learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&P 500 funds that collectively hold more than $1.5 trillion. (To be fair it's likely some, although not all, investors who own S&P 500 funds are institutions or pair them with separate small-cap ETFs.)Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&P 500 Equal Weight ETF, which downplays tech's role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like Vanguard Russell 2000 ETF or the iShares Core S&P Small-Cap ETF, which screens holdings for profitability.Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it's unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren't too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.","news_type":1},"isVote":1,"tweetType":1,"viewCount":36,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":360673871736928,"gmtCreate":1729080964554,"gmtModify":1729080966822,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360673871736928","repostId":"2475658496","repostType":2,"repost":{"id":"2475658496","pubTimestamp":1729067271,"share":"https://ttm.financial/m/news/2475658496?lang=&edition=fundamental","pubTime":"2024-10-16 16:27","market":"us","language":"en","title":"Alphabet Stock Looks Cheap - Analysts Raising Price Targets","url":"https://stock-news.laohu8.com/highlight/detail?id=2475658496","media":"Barchart","summary":"Despite its recent rise, Alphabet Inc. stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.GOOG is at $167.27, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” I argued that GOOG was worth at least $193 per share based on its strong free cash flow  and FCF margins.Here is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month  FCF margin, Alphabet could generate $71.593 billion in 2025.In other words, it provides a good yield - 1.1% for the next 3 weeks - with over 8.3% downside protection.That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stoc","content":"<html><head></head><body><p><strong>Despite its recent rise, Alphabet Inc. (GOOG)</strong> stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.</p><p>GOOG is at <strong>$167.27</strong>, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.</p><p>On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “<strong>Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” </strong>I argued that GOOG was worth at least $193 per share based on its strong free cash flow (FCF) and FCF margins.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44d5b0afa5a02933432f5225d6dd6c8b\" tg-width=\"930\" tg-height=\"525\"/></p><p> GOOG - Barchart - As of Oct. 15, 2024</p><p>Moreover, I showed that shorting out-of-the-money (OTM) puts was one way to play this. This play also works today. First, let&#39;s look at the price targets.</p><h3 id=\"id_1623892895\">Price Target Update</h3><p>Here is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month (LTM) FCF margin, Alphabet could generate $71.593 billion in 2025.</p><p>That implies that its valuation could be substantially higher. For example, using a 3.0% FCF yield metric, its historical valuation, the stock could end up with a market cap of $2.386 trillion (i.e., $71.593b/0.03 = $2,386 billion).</p><p>That represents a potential 16.3% rise in GOOG&#39;s market value of $2.052 trillion today. So, GOOG stock is worth <strong>$194.53</strong> per share (i.e., 1.163 x $167.27 today).</p><p>That is close to what other analysts have as their price targets. For example, AnaChart reports that 43 analysts have an average price target of $193.57. In fact, these same analysts upgraded their prior average of $173.90 as I noted in my prior article.</p><p>The bottom line is that GOOG stock still looks cheap here. One way to play this is to both own the stock and also short out-of-the-money puts.</p><h3 id=\"id_2848584233\">Shorting OTM Puts</h3><p>For example, look at the Nov. 8 put option expiry chain - a little over three weeks from today (24 days). It shows that the $155.00 strike price, which is over 7.4% below today&#39;s trading price, has a price of $1.74 in the midprice.</p><p>That represents an immediate short-put play yield of 1.12% (i.e., $1.74/155.00).</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c6e318c4f14bea12a39e768f2b395ddb\" tg-width=\"1138\" tg-height=\"596\"/></p><p> GOOG Puts - expiring Nov 8 - Barchart - As of Oct. 15, 2024</p><p>That means that an investor who secures $15,500 in cash or buying power with their brokerage firm can enter a trade to “Sell to Open” 1 put contract at $155.00 for expiry on Nov. 8. The account will then immediately receive $174 if the midprice is obtained.</p><p>So, as long as GOOG stays over $155.00 for the next 24 days, the account will not be assigned to buy 100 shares at $155.00. Moreover, even if that happens, the investor&#39;s breakeven price is $155.00-$1.74, or $153.26. That is 8.37% below today&#39;s trading price.</p><p>In other words, it provides a good yield - 1.1% for the next 3 weeks  - with over 8.3% downside protection. That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stock as well as additional income. The worst that can happen is that they buy more shares.</p><p>One interesting point to note here is that the delta is about 20% - which is ideal for shorting OTM puts. That implies that for every $1.00 move in the underlying stock, the put will move 20 cents. In other words, if the stock falls $10, the put will rise by $2.00. But in this case, the option is over $12 out-of-the-money (OTM), so there is still a good chance of making money.</p><p>The bottom line is GOOG stock looks cheap here. One way to play this is to both own GOOG shares and short OTM puts in nearby expiry periods.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alphabet Stock Looks Cheap - Analysts Raising Price Targets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlphabet Stock Looks Cheap - Analysts Raising Price Targets\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-16 16:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Despite its recent rise, Alphabet Inc. (GOOG) stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts...</p>\n\n<a href=\"https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","GOOG":"谷歌"},"source_url":"https://www.barchart.com/story/news/29047649/alphabet-stock-looks-cheap-analysts-raising-price-targets","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2475658496","content_text":"Despite its recent rise, Alphabet Inc. (GOOG) stock could still be undervalued. Analysts have been raising their price targets ahead of earnings at the end of the month. Shorting out-of-the-money puts can yield 1% over the next 3 weeks.GOOG is at $167.27, up substantially from a recent low about a month ago. It hit a trough of $149.54 on Sept. 9.On Sept. 10, I wrote in Barchart that GOOG stock was cheap: “Alphabet Stock Is Down, But Not Out - GOOGL Could Be Worth 29% More.” I argued that GOOG was worth at least $193 per share based on its strong free cash flow (FCF) and FCF margins. GOOG - Barchart - As of Oct. 15, 2024Moreover, I showed that shorting out-of-the-money (OTM) puts was one way to play this. This play also works today. First, let's look at the price targets.Price Target UpdateHere is an update. Analysts project revenue will reach $386.99 billion next year. Using an 18.5% FCF margin, which is its last 12-month (LTM) FCF margin, Alphabet could generate $71.593 billion in 2025.That implies that its valuation could be substantially higher. For example, using a 3.0% FCF yield metric, its historical valuation, the stock could end up with a market cap of $2.386 trillion (i.e., $71.593b/0.03 = $2,386 billion).That represents a potential 16.3% rise in GOOG's market value of $2.052 trillion today. So, GOOG stock is worth $194.53 per share (i.e., 1.163 x $167.27 today).That is close to what other analysts have as their price targets. For example, AnaChart reports that 43 analysts have an average price target of $193.57. In fact, these same analysts upgraded their prior average of $173.90 as I noted in my prior article.The bottom line is that GOOG stock still looks cheap here. One way to play this is to both own the stock and also short out-of-the-money puts.Shorting OTM PutsFor example, look at the Nov. 8 put option expiry chain - a little over three weeks from today (24 days). It shows that the $155.00 strike price, which is over 7.4% below today's trading price, has a price of $1.74 in the midprice.That represents an immediate short-put play yield of 1.12% (i.e., $1.74/155.00). GOOG Puts - expiring Nov 8 - Barchart - As of Oct. 15, 2024That means that an investor who secures $15,500 in cash or buying power with their brokerage firm can enter a trade to “Sell to Open” 1 put contract at $155.00 for expiry on Nov. 8. The account will then immediately receive $174 if the midprice is obtained.So, as long as GOOG stays over $155.00 for the next 24 days, the account will not be assigned to buy 100 shares at $155.00. Moreover, even if that happens, the investor's breakeven price is $155.00-$1.74, or $153.26. That is 8.37% below today's trading price.In other words, it provides a good yield - 1.1% for the next 3 weeks  - with over 8.3% downside protection. That makes it ideal for existing shareholders to do this trade. That way they gain all the potential upside in GOOG stock as well as additional income. The worst that can happen is that they buy more shares.One interesting point to note here is that the delta is about 20% - which is ideal for shorting OTM puts. That implies that for every $1.00 move in the underlying stock, the put will move 20 cents. In other words, if the stock falls $10, the put will rise by $2.00. But in this case, the option is over $12 out-of-the-money (OTM), so there is still a good chance of making money.The bottom line is GOOG stock looks cheap here. One way to play this is to both own GOOG shares and short OTM puts in nearby expiry periods.","news_type":1},"isVote":1,"tweetType":1,"viewCount":38,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":360666908942512,"gmtCreate":1729079356117,"gmtModify":1729079359834,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360666908942512","repostId":"360296743768192","repostType":1,"repost":{"id":360296743768192,"gmtCreate":1728967538286,"gmtModify":1729092001976,"author":{"id":"3572212908677301","authorId":"3572212908677301","name":"TigerOptions","avatar":"https://community-static.tradeup.com/news/20925853481806adc78dcdfe25f2fe89","crmLevel":6,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3572212908677301","authorIdStr":"3572212908677301"},"themes":[],"title":"Why Palantir Could Retrace Here","htmlText":"As a long-time <a href=\"https://ttm.financial/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a> bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","listText":"As a long-time <a href=\"https://ttm.financial/S/PLTR\">$Palantir Technologies Inc.(PLTR)$</a> bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","text":"As a long-time $Palantir Technologies Inc.(PLTR)$ bull, I’ve been accumulating shares throughout the year, taking advantage of its growth and future potential. However, after the recent explosive breakout from an ascending channel, I believe a retracement could be on the horizon. Tiger Broker App Don’t get me wrong—I’m still bullish on PLTR for the long term, but from a technical perspective, the current price action suggests a short-term pullback is increasingly likely. Here’s why I think now might be the time to prepare for a potential retracement. PLTR Weekly Chart Palantir recently experienced a strong breakout, one that shot the price up after following an ascending channel pattern. This kind of movement is incredibly bullish, signaling that","images":[{"img":"https://community-static.tradeup.com/news/1a01babae0e1197404e367227dec22c0","width":"340","height":"567"}],"top":1,"highlighted":2,"essential":2,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360296743768192","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":5,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":8,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":355033658675520,"gmtCreate":1727680224516,"gmtModify":1727680228594,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/355033658675520","repostId":"354178194841856","repostType":1,"repost":{"id":354178194841856,"gmtCreate":1727477376832,"gmtModify":1727484379007,"author":{"id":"4089501973615070","authorId":"4089501973615070","name":"Optionspuppy","avatar":"https://static.tigerbbs.com/caf34258aff8afe478620b82647f1199","crmLevel":6,"crmLevelSwitch":1,"followedFlag":false,"idStr":"4089501973615070","authorIdStr":"4089501973615070"},"themes":[],"htmlText":"I closed <a href=\"https://ttm.financial/S/IAU\">$iShares Gold Trust(IAU)$&nbsp;</a> ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","listText":"I closed <a href=\"https://ttm.financial/S/IAU\">$iShares Gold Trust(IAU)$&nbsp;</a> ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","text":"I closed $iShares Gold Trust(IAU)$ ,My Successful Trade: Selling iShares Gold Trust (IAU) Today, Friday, September 27, 2024, I decided to take profit on my IAU position. I initially bought IAU at $48, and with the price reaching $50, I've decided to sell and lock in my profit. This trade has been a successful one for me, and I'm happy to have made a gain. Using a Take-Profit Order I used a take-profit order to automatically sell my position when the price reached my target level, which helped me to avoid second-guessing myself and ensured that I didn't miss out on the opportunity to take profit. A Slightly Higher Price After Close Although gold went up to $50.20 after the close, I'm still satisfied with my decision to sell at $50. I made a pr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/354178194841856","isVote":1,"tweetType":1,"viewCount":0,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},"isVote":1,"tweetType":1,"viewCount":65,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350941521244416,"gmtCreate":1726704661702,"gmtModify":1726704663735,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350941521244416","repostId":"1148881853","repostType":2,"isVote":1,"tweetType":1,"viewCount":19,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350940955988200,"gmtCreate":1726704502233,"gmtModify":1726704504202,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350940955988200","repostId":"2468535026","repostType":2,"isVote":1,"tweetType":1,"viewCount":14,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350938378563584,"gmtCreate":1726703786659,"gmtModify":1726703788561,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350938378563584","repostId":"1170222350","repostType":2,"repost":{"id":"1170222350","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings","home_visible":1,"media_name":"TigerNews SG","id":"1050470178","head_image":"https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709"},"pubTimestamp":1726621488,"share":"https://ttm.financial/m/news/1170222350?lang=&edition=fundamental","pubTime":"2024-09-18 09:04","market":"sg","language":"en","title":"SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy","url":"https://stock-news.laohu8.com/highlight/detail?id=1170222350","media":"TigerNews SG","summary":"Market SnapshotSingapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.Stocks to WatchSembcorp: The group’s subsidiary Sembcorp ","content":"<html><head></head><body><h2 id=\"id_2780928662\">Market Snapshot</h2><p>Singapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a750e0eccfc023557d8031d958a978b3\" tg-width=\"281\" tg-height=\"751\"/></p><h2 id=\"id_3813175564\">Stocks to Watch</h2><p><strong>Sembcorp:</strong> The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.</p><p><strong>Lippo Malls Indonesia Retail Trust (LMIRT):</strong> Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.</p><h2 id=\"id_3059161784\">SG Local News</h2><p><strong>Singapore labour market expands in Q2, with growth coming solely from non-residents</strong></p><p>Singapore&#39;s labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).</p><p>This comes as Singapore&#39;s resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.</p><p><strong>Isetan Singapore to delist on Sep 19</strong></p><p>Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).</p><p>Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.</p><p>To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSG Morning Call | Singapore Stocks Opened Lower on Wednesday; Sembcorp to Acquire 30% Interest in Senoko Energy\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1050470178\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/f17a9a7b68c877792d5e556261e9e709);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">TigerNews SG </p>\n<p class=\"h-time\">2024-09-18 09:04</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><h2 id=\"id_2780928662\">Market Snapshot</h2><p>Singapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a750e0eccfc023557d8031d958a978b3\" tg-width=\"281\" tg-height=\"751\"/></p><h2 id=\"id_3813175564\">Stocks to Watch</h2><p><strong>Sembcorp:</strong> The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.</p><p><strong>Lippo Malls Indonesia Retail Trust (LMIRT):</strong> Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.</p><h2 id=\"id_3059161784\">SG Local News</h2><p><strong>Singapore labour market expands in Q2, with growth coming solely from non-residents</strong></p><p>Singapore&#39;s labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).</p><p>This comes as Singapore&#39;s resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.</p><p><strong>Isetan Singapore to delist on Sep 19</strong></p><p>Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).</p><p>Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.</p><p>To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"U96.SI":"胜科工业","STI.SI":"富时新加坡海峡指数","D5IU.SI":"力宝印尼零售信托"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1170222350","content_text":"Market SnapshotSingapore stocks opened lower on Wednesday. STI fell 0.5%; Sembcorp rose 1.4%; LMIRT fell 4.4%; SIA rose 0.6%; SingPost fell 1%.Stocks to WatchSembcorp: The group’s subsidiary Sembcorp Utilities agreed to acquire a 30 per cent interest in energy supplier Senoko Energy for an undisclosed sum in a purchase agreement signed with energy solutions provider Engie Global Developments, said Sembcorp on Tuesday. The acquisition will not have a material impact on Sembcorp’s net tangible assets per share for the current fiscal year ending Dec 31. Shares of Sembcorp closed S$0.06 or 1.2 per cent higher at S$5.19, before the announcement.Lippo Malls Indonesia Retail Trust (LMIRT): Two rating agencies, Moody’s Investor Service and Fitch, withdrew the real estate investment trust’s credit ratings, as well as ratings on notes issued by its wholly owned subsidiary LMIRT Capital. Prior to the withdrawal, the outlook on all of LMIRT’s ratings were stable. Units of LMIRT closed flat at S$0.023 on Tuesday, before the announcement.SG Local NewsSingapore labour market expands in Q2, with growth coming solely from non-residentsSingapore's labour market continued to expand in the second quarter of 2024, with the growth attributed solely to non-residents, according to latest data released on Tuesday (Sep 17).This comes as Singapore's resident employment growth rate is expected to slow down in the longer term, said Manpower Minister Tan See Leng.Isetan Singapore to delist on Sep 19Department store operator Isetan Singapore will delist from the Singapore Exchange on Thursday (Sep 19).Its shares were suspended on Aug 29 after the Singapore High Court sanctioned a scheme of arrangement that allowed Japan’s Isetan Mitsukoshi to take the company private.To recap, Isetan Mitsukoshi in April proposed to fully purchase all the shares of Isetan Singapore it does not own, at a consideration of S$7.20 for each target share.","news_type":1},"isVote":1,"tweetType":1,"viewCount":50,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350871399379000,"gmtCreate":1726703718557,"gmtModify":1726703720440,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350871399379000","repostId":"1129871803","repostType":2,"repost":{"id":"1129871803","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1726624576,"share":"https://ttm.financial/m/news/1129871803?lang=&edition=fundamental","pubTime":"2024-09-18 09:56","market":"us","language":"en","title":"24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%","url":"https://stock-news.laohu8.com/highlight/detail?id=1129871803","media":"Tiger Newspress","summary":"$Intuitive Machines$ said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.Power infrastructure developer $VivoPower$ said on Tuesday it has signed a non-binding agreement to merge with Canada's Future Automotive Solutions and Technologies , which would create a $1.13 billion combined co","content":"<html><head></head><body><p><strong><a href=\"https://laohu8.com/S/LUNR\">Intuitive Machines</a></strong> said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.</p><p>Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed12f628a0373c18ee815f692a946cd\" tg-width=\"882\" tg-height=\"626\"/></p><p>Power infrastructure developer <strong><a href=\"https://laohu8.com/S/VVPR\">VivoPower</a></strong> said on Tuesday it has signed a non-binding agreement to merge with Canada&#39;s Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.</p><p>VivoPower shares surged 29% in overnight trading.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aecf9097811ff6d31f152f40b6a9fc12\" tg-width=\"878\" tg-height=\"624\"/></p><p><strong><a href=\"https://laohu8.com/S/X\">U.S. Steel</a></strong> shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b2e6ff7e333137a943f2dc1f71386a4a\" tg-width=\"882\" tg-height=\"625\"/></p><h2 id=\"id_1428670322\">TOP10 gainers in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7999c0f06067584cf9b680b435a4114b\" tg-width=\"1279\" tg-height=\"2171\"/></p><h2 id=\"id_2329928591\">TOP10 decliners in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0b241c2145aef013ea630dd4559e95f\" tg-width=\"1279\" tg-height=\"2185\"/></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n24H｜Intuitive Machines Soars 57%; U.S. Steel Gains 4%\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2024-09-18 09:56</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p><strong><a href=\"https://laohu8.com/S/LUNR\">Intuitive Machines</a></strong> said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.</p><p>Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed12f628a0373c18ee815f692a946cd\" tg-width=\"882\" tg-height=\"626\"/></p><p>Power infrastructure developer <strong><a href=\"https://laohu8.com/S/VVPR\">VivoPower</a></strong> said on Tuesday it has signed a non-binding agreement to merge with Canada&#39;s Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.</p><p>VivoPower shares surged 29% in overnight trading.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/aecf9097811ff6d31f152f40b6a9fc12\" tg-width=\"878\" tg-height=\"624\"/></p><p><strong><a href=\"https://laohu8.com/S/X\">U.S. Steel</a></strong> shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b2e6ff7e333137a943f2dc1f71386a4a\" tg-width=\"882\" tg-height=\"625\"/></p><h2 id=\"id_1428670322\">TOP10 gainers in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7999c0f06067584cf9b680b435a4114b\" tg-width=\"1279\" tg-height=\"2171\"/></p><h2 id=\"id_2329928591\">TOP10 decliners in overnight trading:</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a0b241c2145aef013ea630dd4559e95f\" tg-width=\"1279\" tg-height=\"2185\"/></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"VVPR":"VivoPower","LUNR":"Intuitive Machines","X":"美国钢铁"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129871803","content_text":"Intuitive Machines said on Tuesday it has bagged a navigation and communication services contract of up to $4.82 billion from NASA for missions in the near space region.Shares of the space exploration company soared 57% in overnight trading and have more than doubled so far this year.Power infrastructure developer VivoPower said on Tuesday it has signed a non-binding agreement to merge with Canada's Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company.VivoPower shares surged 29% in overnight trading.U.S. Steel shares rose 4% in overnight trading on reports that it won an extension to the U.S. national security review of its planned $14 billion sale to Nippon Steel.TOP10 gainers in overnight trading:TOP10 decliners in overnight trading:","news_type":1},"isVote":1,"tweetType":1,"viewCount":84,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350936778137800,"gmtCreate":1726703482722,"gmtModify":1726703484642,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350936778137800","repostId":"2468655392","repostType":2,"repost":{"id":"2468655392","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1726618357,"share":"https://ttm.financial/m/news/2468655392?lang=&edition=fundamental","pubTime":"2024-09-18 08:12","market":"us","language":"en","title":"Stocks Flirt with Record Even as Fed Considers Extra-Large Interest-Rate Cut","url":"https://stock-news.laohu8.com/highlight/detail?id=2468655392","media":"Dow Jones","summary":"A half-point interest-rate cut by the Fed on Wednesday wouldn't necessarily signal the U.S. is heading into recession, according to BlackRock's Rick RiederIt's a scenario that may strike some investor","content":"<html><head></head><body><p>A half-point interest-rate cut by the Fed on Wednesday wouldn&#39;t necessarily signal the U.S. is heading into recession, according to BlackRock&#39;s Rick Rieder</p><p>It&#39;s a scenario that may strike some investors as unnerving. The stock market is trading near an all-time high while the Federal Reserve is contemplating an extra-large interest-rate cut that raises questions over whether policymakers may see something troubling about the economy.</p><p>&#34;I don&#39;t believe a recession is anywhere near in sight,&#34; said Rick Rieder, BlackRock&#39;s chief investment officer of global fixed income and head of the firm&#39;s global allocation investment team, in a phone interview. &#34;The economy is moderating, but still in pretty good shape.&#34;</p><p>The Fed is getting ready to cut rates after holding them higher to tame inflation that had surged in the U.S. during the COVID-19 pandemic. Inflation has since cooled, and although the Fed has in the past started its easing cycle with a large half-point cut on worries over a recession or financial crisis, Rieder says a cut of that magnitude wouldn&#39;t necessarily reflect that one is looming now.</p><p>Investors are bracing for the Fed&#39;s decision Wednesday on where to set rates, after recently shifting back and forth between expectations for a cut of a quarter percentage point or half point. So far this week, the market has priced in a higher probability of a 50 basis-point cut.</p><p>&#34;I think it&#39;s a toss-up whether they do 25 or 50 - despite the fact I think they should do 50,&#34; said Rieder. But the market&#39;s latest pricing of rate-cut expectations might make it &#34;easier for the Fed to just do it,&#34; he said. &#34;It will be disappointing to the markets now if it&#39;s only a 25-basis-point cut.&#34;</p><p>The U.S. stock market ended Monday with the Dow Jones Industrial Average DJIA at a fresh-all high. On Tuesday, the S&amp;P 500 SPX briefly traded above its record closing high notched July 16, before closing nearly flat, according to FactSet data.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/62c6f7eb8a8b32bc43925b19acdc76d1\" tg-width=\"643\" tg-height=\"443\"/></p><p>Fed-funds futures on Tuesday showed traders pricing in a 65% chance the Fed will decide to lower its policy rate by 50 basis points, and a 35% probability of a 25 basis-point cut, according to the CME FedWatch Tool, at last check. Looking further out, traders saw potentially 125 basis points of rate cuts by year-end, or 1.25 percentage points.</p><p>&#34;The market has moved very aggressively,&#34; said Rieder, of its rate-cut expectations.</p><p>More important than whether the Fed on Wednesday decides to cut rates by 25 or 50 basis points will be its communication on how quickly it may move its federal-funds rate to 4% or below, according to Rieder. The market is probably pricing in deeper rate cuts through 2024 than Fed officials may be penciling based on the most recent economic data, he said.</p><p>A &#34;big focus for the markets&#34; will be any changes the Fed makes in its policy statement informing the speed of potential rate cuts, including how it describes the balance of risks to its inflation and employment goals, according to Rieder.</p><p>He said markets will be watching for how worried Fed Chair Jerome Powell seems about the labor market after the U.S. unemployment rate&#39;s rise in recent months, with heightened concern potentially indicating a faster pace of rate cuts by the Fed.</p><p>The central bank&#39;s so-called dot plot in its summary of economic projections, which plots the rate forecasts of individual Fed officials, will be released Wednesday along with its policy statement.</p><p>The previous summary of economic projections, released in June, showed the median forecast for the fed-funds rate was 5.1% by the end of 2024. The Fed currently holds its benchmark rate at a target range of 5.25% to 5.5%, an elevated level maintained since July 2023 following a series of rate hikes aimed at combating high inflation.</p><p>&#34;There&#39;s going to be a keen focus on how much they move their dots down,&#34; said Rieder. Clarification around the amount of rate cuts Fed officials are anticipating - and how quickly the central bank now sees getting to the point - &#34;is going to be really important,&#34; he said.</p><p>Interest rates in the bond market have dropped this month in expectation of Fed rate cuts.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3e3d3df4835f52ed1df6912001d83b80\" tg-width=\"642\" tg-height=\"450\"/></p><p>The yield on the 10-year Treasury note BX:TMUBMUSD10Y fell Monday to 3.622%, the lowest level since June 2023 based on 3 p.m. Eastern time levels, according to Dow Jones Market Data. The two-year Treasury rate BX:TMUBMUSD02Y declined to 3.554%, its lowest yield since September 2022.</p><p>The Fed&#39;s current benchmark rate is the &#34;wrong price,&#34; or too high, when considering inflation in the U.S. is &#34;certainly&#34; trending towards, if not at or through, its 2% target, according to Rieder.</p><p>For example, he cited core data from the personal-consumption-expenditures price index, the Fed&#39;s favored gauge. Core PCE, which excludes food and energy prices, is down to 1.7% on a three-month annualized basis, he said.</p><p>In Rieder&#39;s view, a half-point rate cut by the Fed on Wednesday would reflect a &#34;recalibration&#34; of its monetary policy after a significant easing in inflation left its policy rate too elevated relative to what &#34;equilibrium&#34; should be. &#34;If you were setting the fed-funds rate for today&#39;s economic conditions, it would easily be&#34; 100 to 200 basis points lower than it is today, he said.</p><p>Rieder has positioned the BlackRock Flexible Income ETF BINC, an exchange-traded fund that he actively manages to invest in fixed-income markets globally, with significant exposure to high-yield bonds, as he is not currently anticipating a recession.</p><p>&#34;I love high-yield,&#34; Rieder said, referring to corporate bonds rated below investment grade. &#34;We&#39;re extremely active in managing our high-yield exposure both in the U.S. and Europe,&#34; seeking to avoid parts of the market that either are undergoing restructurings or trading at &#34;rich&#34; valuations, he said.</p><p>Rieder has been steering the fund - which also holds securitized assets, some agency mortgages and investment-grade corporate credit - to buy assets in the &#34;belly,&#34; or three -to-five-year portion, of the yield curve. The ETF&#39;s portfolio is running at an annual yield of more than 6%, he said.</p><h2 id=\"id_2223647756\">S&amp;P 500 trades near record high</h2><p>Meanwhile, the U.S. stock market has posted double-digit gains so far this year, as it faces the conclusion of the Fed&#39;s two-day policy meeting on Wednesday.</p><p>The S&amp;P 500 eked out a less than 0.1% gain Tuesday to close at 5,634.58, finishing the trading session up 18.1% in 2024 and just 0.6% below its all-time closing high, according to Dow Jones Market Data.</p><p>The S&amp;P 500 looks relatively expensive, trading at 21 times forward earnings versus a 10-year average of 18 times, according to Adam Turnquist, chief technical strategist for LPL Financial.</p><p>Valuations aren&#39;t a good timing tool in the short-term, but when they&#39;re high it can raise the bar for buyers considering buying stocks after a pullback, he said in a phone interview.</p><p>The outcome of the Fed&#39;s meeting may turn out to be a &#34;make-or-break moment&#34; for U.S. stocks, &#34;considering we&#39;re right near this inflection point for the market&#34; from a technical standpoint, according to Turnquist.</p><p>The U.S. stock market has stumbled in September, with the S&amp;P 500 posting a monthly decline of 0.2% through Tuesday. FactSet data show.</p><p>&#34;There&#39;s pretty high expectations not just for a 50 basis point rate cut,&#34; Turnquist said, &#34;but a consistent series of rate cuts all the way into next year.&#34;</p><p>All eyes will be on Powell on Wednesday, when he is scheduled to host a press conference at 2:30 p.m. Eastern time. That&#39;s 30 minutes after the Fed is due to release its decision on rates, marking the expected start of the Fed&#39;s rate-cutting cycle.</p><p>&#34;Fifty is the usual amount kicking off an easing cycle, but the economic circumstances are different this time: There&#39;s no recession clearly barreling toward us,&#34; Yardeni Research said in a note Monday. &#34;Nevertheless, recession fears undoubtedly are influencing Fed officials more now that they&#39;re much less worried about inflation than over the past two and a half years.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Stocks Flirt with Record Even as Fed Considers Extra-Large Interest-Rate Cut</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nStocks Flirt with Record Even as Fed Considers Extra-Large Interest-Rate Cut\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-09-18 08:12</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>A half-point interest-rate cut by the Fed on Wednesday wouldn&#39;t necessarily signal the U.S. is heading into recession, according to BlackRock&#39;s Rick Rieder</p><p>It&#39;s a scenario that may strike some investors as unnerving. The stock market is trading near an all-time high while the Federal Reserve is contemplating an extra-large interest-rate cut that raises questions over whether policymakers may see something troubling about the economy.</p><p>&#34;I don&#39;t believe a recession is anywhere near in sight,&#34; said Rick Rieder, BlackRock&#39;s chief investment officer of global fixed income and head of the firm&#39;s global allocation investment team, in a phone interview. &#34;The economy is moderating, but still in pretty good shape.&#34;</p><p>The Fed is getting ready to cut rates after holding them higher to tame inflation that had surged in the U.S. during the COVID-19 pandemic. Inflation has since cooled, and although the Fed has in the past started its easing cycle with a large half-point cut on worries over a recession or financial crisis, Rieder says a cut of that magnitude wouldn&#39;t necessarily reflect that one is looming now.</p><p>Investors are bracing for the Fed&#39;s decision Wednesday on where to set rates, after recently shifting back and forth between expectations for a cut of a quarter percentage point or half point. So far this week, the market has priced in a higher probability of a 50 basis-point cut.</p><p>&#34;I think it&#39;s a toss-up whether they do 25 or 50 - despite the fact I think they should do 50,&#34; said Rieder. But the market&#39;s latest pricing of rate-cut expectations might make it &#34;easier for the Fed to just do it,&#34; he said. &#34;It will be disappointing to the markets now if it&#39;s only a 25-basis-point cut.&#34;</p><p>The U.S. stock market ended Monday with the Dow Jones Industrial Average DJIA at a fresh-all high. On Tuesday, the S&amp;P 500 SPX briefly traded above its record closing high notched July 16, before closing nearly flat, according to FactSet data.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/62c6f7eb8a8b32bc43925b19acdc76d1\" tg-width=\"643\" tg-height=\"443\"/></p><p>Fed-funds futures on Tuesday showed traders pricing in a 65% chance the Fed will decide to lower its policy rate by 50 basis points, and a 35% probability of a 25 basis-point cut, according to the CME FedWatch Tool, at last check. Looking further out, traders saw potentially 125 basis points of rate cuts by year-end, or 1.25 percentage points.</p><p>&#34;The market has moved very aggressively,&#34; said Rieder, of its rate-cut expectations.</p><p>More important than whether the Fed on Wednesday decides to cut rates by 25 or 50 basis points will be its communication on how quickly it may move its federal-funds rate to 4% or below, according to Rieder. The market is probably pricing in deeper rate cuts through 2024 than Fed officials may be penciling based on the most recent economic data, he said.</p><p>A &#34;big focus for the markets&#34; will be any changes the Fed makes in its policy statement informing the speed of potential rate cuts, including how it describes the balance of risks to its inflation and employment goals, according to Rieder.</p><p>He said markets will be watching for how worried Fed Chair Jerome Powell seems about the labor market after the U.S. unemployment rate&#39;s rise in recent months, with heightened concern potentially indicating a faster pace of rate cuts by the Fed.</p><p>The central bank&#39;s so-called dot plot in its summary of economic projections, which plots the rate forecasts of individual Fed officials, will be released Wednesday along with its policy statement.</p><p>The previous summary of economic projections, released in June, showed the median forecast for the fed-funds rate was 5.1% by the end of 2024. The Fed currently holds its benchmark rate at a target range of 5.25% to 5.5%, an elevated level maintained since July 2023 following a series of rate hikes aimed at combating high inflation.</p><p>&#34;There&#39;s going to be a keen focus on how much they move their dots down,&#34; said Rieder. Clarification around the amount of rate cuts Fed officials are anticipating - and how quickly the central bank now sees getting to the point - &#34;is going to be really important,&#34; he said.</p><p>Interest rates in the bond market have dropped this month in expectation of Fed rate cuts.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/3e3d3df4835f52ed1df6912001d83b80\" tg-width=\"642\" tg-height=\"450\"/></p><p>The yield on the 10-year Treasury note BX:TMUBMUSD10Y fell Monday to 3.622%, the lowest level since June 2023 based on 3 p.m. Eastern time levels, according to Dow Jones Market Data. The two-year Treasury rate BX:TMUBMUSD02Y declined to 3.554%, its lowest yield since September 2022.</p><p>The Fed&#39;s current benchmark rate is the &#34;wrong price,&#34; or too high, when considering inflation in the U.S. is &#34;certainly&#34; trending towards, if not at or through, its 2% target, according to Rieder.</p><p>For example, he cited core data from the personal-consumption-expenditures price index, the Fed&#39;s favored gauge. Core PCE, which excludes food and energy prices, is down to 1.7% on a three-month annualized basis, he said.</p><p>In Rieder&#39;s view, a half-point rate cut by the Fed on Wednesday would reflect a &#34;recalibration&#34; of its monetary policy after a significant easing in inflation left its policy rate too elevated relative to what &#34;equilibrium&#34; should be. &#34;If you were setting the fed-funds rate for today&#39;s economic conditions, it would easily be&#34; 100 to 200 basis points lower than it is today, he said.</p><p>Rieder has positioned the BlackRock Flexible Income ETF BINC, an exchange-traded fund that he actively manages to invest in fixed-income markets globally, with significant exposure to high-yield bonds, as he is not currently anticipating a recession.</p><p>&#34;I love high-yield,&#34; Rieder said, referring to corporate bonds rated below investment grade. &#34;We&#39;re extremely active in managing our high-yield exposure both in the U.S. and Europe,&#34; seeking to avoid parts of the market that either are undergoing restructurings or trading at &#34;rich&#34; valuations, he said.</p><p>Rieder has been steering the fund - which also holds securitized assets, some agency mortgages and investment-grade corporate credit - to buy assets in the &#34;belly,&#34; or three -to-five-year portion, of the yield curve. The ETF&#39;s portfolio is running at an annual yield of more than 6%, he said.</p><h2 id=\"id_2223647756\">S&amp;P 500 trades near record high</h2><p>Meanwhile, the U.S. stock market has posted double-digit gains so far this year, as it faces the conclusion of the Fed&#39;s two-day policy meeting on Wednesday.</p><p>The S&amp;P 500 eked out a less than 0.1% gain Tuesday to close at 5,634.58, finishing the trading session up 18.1% in 2024 and just 0.6% below its all-time closing high, according to Dow Jones Market Data.</p><p>The S&amp;P 500 looks relatively expensive, trading at 21 times forward earnings versus a 10-year average of 18 times, according to Adam Turnquist, chief technical strategist for LPL Financial.</p><p>Valuations aren&#39;t a good timing tool in the short-term, but when they&#39;re high it can raise the bar for buyers considering buying stocks after a pullback, he said in a phone interview.</p><p>The outcome of the Fed&#39;s meeting may turn out to be a &#34;make-or-break moment&#34; for U.S. stocks, &#34;considering we&#39;re right near this inflection point for the market&#34; from a technical standpoint, according to Turnquist.</p><p>The U.S. stock market has stumbled in September, with the S&amp;P 500 posting a monthly decline of 0.2% through Tuesday. FactSet data show.</p><p>&#34;There&#39;s pretty high expectations not just for a 50 basis point rate cut,&#34; Turnquist said, &#34;but a consistent series of rate cuts all the way into next year.&#34;</p><p>All eyes will be on Powell on Wednesday, when he is scheduled to host a press conference at 2:30 p.m. Eastern time. That&#39;s 30 minutes after the Fed is due to release its decision on rates, marking the expected start of the Fed&#39;s rate-cutting cycle.</p><p>&#34;Fifty is the usual amount kicking off an easing cycle, but the economic circumstances are different this time: There&#39;s no recession clearly barreling toward us,&#34; Yardeni Research said in a note Monday. &#34;Nevertheless, recession fears undoubtedly are influencing Fed officials more now that they&#39;re much less worried about inflation than over the past two and a half years.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯","BK4585":"ETF&股票定投概念","BK4559":"巴菲特持仓",".IXIC":"NASDAQ Composite","BK4534":"瑞士信贷持仓","BK4581":"高盛持仓","BK4504":"桥水持仓","BK4550":"红杉资本持仓","BK4588":"碎股"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2468655392","content_text":"A half-point interest-rate cut by the Fed on Wednesday wouldn't necessarily signal the U.S. is heading into recession, according to BlackRock's Rick RiederIt's a scenario that may strike some investors as unnerving. The stock market is trading near an all-time high while the Federal Reserve is contemplating an extra-large interest-rate cut that raises questions over whether policymakers may see something troubling about the economy.\"I don't believe a recession is anywhere near in sight,\" said Rick Rieder, BlackRock's chief investment officer of global fixed income and head of the firm's global allocation investment team, in a phone interview. \"The economy is moderating, but still in pretty good shape.\"The Fed is getting ready to cut rates after holding them higher to tame inflation that had surged in the U.S. during the COVID-19 pandemic. Inflation has since cooled, and although the Fed has in the past started its easing cycle with a large half-point cut on worries over a recession or financial crisis, Rieder says a cut of that magnitude wouldn't necessarily reflect that one is looming now.Investors are bracing for the Fed's decision Wednesday on where to set rates, after recently shifting back and forth between expectations for a cut of a quarter percentage point or half point. So far this week, the market has priced in a higher probability of a 50 basis-point cut.\"I think it's a toss-up whether they do 25 or 50 - despite the fact I think they should do 50,\" said Rieder. But the market's latest pricing of rate-cut expectations might make it \"easier for the Fed to just do it,\" he said. \"It will be disappointing to the markets now if it's only a 25-basis-point cut.\"The U.S. stock market ended Monday with the Dow Jones Industrial Average DJIA at a fresh-all high. On Tuesday, the S&P 500 SPX briefly traded above its record closing high notched July 16, before closing nearly flat, according to FactSet data.Fed-funds futures on Tuesday showed traders pricing in a 65% chance the Fed will decide to lower its policy rate by 50 basis points, and a 35% probability of a 25 basis-point cut, according to the CME FedWatch Tool, at last check. Looking further out, traders saw potentially 125 basis points of rate cuts by year-end, or 1.25 percentage points.\"The market has moved very aggressively,\" said Rieder, of its rate-cut expectations.More important than whether the Fed on Wednesday decides to cut rates by 25 or 50 basis points will be its communication on how quickly it may move its federal-funds rate to 4% or below, according to Rieder. The market is probably pricing in deeper rate cuts through 2024 than Fed officials may be penciling based on the most recent economic data, he said.A \"big focus for the markets\" will be any changes the Fed makes in its policy statement informing the speed of potential rate cuts, including how it describes the balance of risks to its inflation and employment goals, according to Rieder.He said markets will be watching for how worried Fed Chair Jerome Powell seems about the labor market after the U.S. unemployment rate's rise in recent months, with heightened concern potentially indicating a faster pace of rate cuts by the Fed.The central bank's so-called dot plot in its summary of economic projections, which plots the rate forecasts of individual Fed officials, will be released Wednesday along with its policy statement.The previous summary of economic projections, released in June, showed the median forecast for the fed-funds rate was 5.1% by the end of 2024. The Fed currently holds its benchmark rate at a target range of 5.25% to 5.5%, an elevated level maintained since July 2023 following a series of rate hikes aimed at combating high inflation.\"There's going to be a keen focus on how much they move their dots down,\" said Rieder. Clarification around the amount of rate cuts Fed officials are anticipating - and how quickly the central bank now sees getting to the point - \"is going to be really important,\" he said.Interest rates in the bond market have dropped this month in expectation of Fed rate cuts.The yield on the 10-year Treasury note BX:TMUBMUSD10Y fell Monday to 3.622%, the lowest level since June 2023 based on 3 p.m. Eastern time levels, according to Dow Jones Market Data. The two-year Treasury rate BX:TMUBMUSD02Y declined to 3.554%, its lowest yield since September 2022.The Fed's current benchmark rate is the \"wrong price,\" or too high, when considering inflation in the U.S. is \"certainly\" trending towards, if not at or through, its 2% target, according to Rieder.For example, he cited core data from the personal-consumption-expenditures price index, the Fed's favored gauge. Core PCE, which excludes food and energy prices, is down to 1.7% on a three-month annualized basis, he said.In Rieder's view, a half-point rate cut by the Fed on Wednesday would reflect a \"recalibration\" of its monetary policy after a significant easing in inflation left its policy rate too elevated relative to what \"equilibrium\" should be. \"If you were setting the fed-funds rate for today's economic conditions, it would easily be\" 100 to 200 basis points lower than it is today, he said.Rieder has positioned the BlackRock Flexible Income ETF BINC, an exchange-traded fund that he actively manages to invest in fixed-income markets globally, with significant exposure to high-yield bonds, as he is not currently anticipating a recession.\"I love high-yield,\" Rieder said, referring to corporate bonds rated below investment grade. \"We're extremely active in managing our high-yield exposure both in the U.S. and Europe,\" seeking to avoid parts of the market that either are undergoing restructurings or trading at \"rich\" valuations, he said.Rieder has been steering the fund - which also holds securitized assets, some agency mortgages and investment-grade corporate credit - to buy assets in the \"belly,\" or three -to-five-year portion, of the yield curve. The ETF's portfolio is running at an annual yield of more than 6%, he said.S&P 500 trades near record highMeanwhile, the U.S. stock market has posted double-digit gains so far this year, as it faces the conclusion of the Fed's two-day policy meeting on Wednesday.The S&P 500 eked out a less than 0.1% gain Tuesday to close at 5,634.58, finishing the trading session up 18.1% in 2024 and just 0.6% below its all-time closing high, according to Dow Jones Market Data.The S&P 500 looks relatively expensive, trading at 21 times forward earnings versus a 10-year average of 18 times, according to Adam Turnquist, chief technical strategist for LPL Financial.Valuations aren't a good timing tool in the short-term, but when they're high it can raise the bar for buyers considering buying stocks after a pullback, he said in a phone interview.The outcome of the Fed's meeting may turn out to be a \"make-or-break moment\" for U.S. stocks, \"considering we're right near this inflection point for the market\" from a technical standpoint, according to Turnquist.The U.S. stock market has stumbled in September, with the S&P 500 posting a monthly decline of 0.2% through Tuesday. FactSet data show.\"There's pretty high expectations not just for a 50 basis point rate cut,\" Turnquist said, \"but a consistent series of rate cuts all the way into next year.\"All eyes will be on Powell on Wednesday, when he is scheduled to host a press conference at 2:30 p.m. Eastern time. That's 30 minutes after the Fed is due to release its decision on rates, marking the expected start of the Fed's rate-cutting cycle.\"Fifty is the usual amount kicking off an easing cycle, but the economic circumstances are different this time: There's no recession clearly barreling toward us,\" Yardeni Research said in a note Monday. \"Nevertheless, recession fears undoubtedly are influencing Fed officials more now that they're much less worried about inflation than over the past two and a half years.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":27,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":350936241569992,"gmtCreate":1726703351724,"gmtModify":1726703355211,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/350936241569992","repostId":"2468311042","repostType":2,"isVote":1,"tweetType":1,"viewCount":26,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":345056642085136,"gmtCreate":1725270428520,"gmtModify":1725270430900,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345056642085136","repostId":"2463708574","repostType":2,"isVote":1,"tweetType":1,"viewCount":111,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344426342248736,"gmtCreate":1725081238489,"gmtModify":1725081242167,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344426342248736","repostId":"2463986757","repostType":2,"repost":{"id":"2463986757","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1725067421,"share":"https://ttm.financial/m/news/2463986757?lang=&edition=fundamental","pubTime":"2024-08-31 09:23","market":"us","language":"en","title":"Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?","url":"https://stock-news.laohu8.com/highlight/detail?id=2463986757","media":"Dow Jones","summary":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $$ bought back nearly $15 billion in stock during the first half of its fiscal year, ","content":"<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-08-31 09:23</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4571":"数字音乐概念","BK4507":"流媒体概念","BK4576":"AR","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4575":"芯片概念","BK4566":"资本集团","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","BK4525":"远程办公概念","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","BK4524":"宅经济概念","BK4527":"明星科技股","BK4501":"段永平概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","LU0109392836.USD":"富兰克林科技股A","BK4503":"景林资产持仓","NVDA":"英伟达","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4551":"寇图资本持仓","BK4574":"无人驾驶","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4573":"虚拟现实","BK4561":"索罗斯持仓","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4505":"高瓴资本持仓","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4581":"高盛持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0215105999.USD":"SCHRODER ISF GLOBAL EQUITY \"A\" ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0971096721.USD":"富达环球金融服务 A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4529":"IDC概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463986757","content_text":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $(NVDA)$ bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.But is the upsized program a good signal for investors? There's some debate among analysts.When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.\"When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,\" S&P Visible Alpha TMT analyst Melissa Otto told MarketWatch.She likened Nvidia's move to ones made by Alphabet Inc. $(GOOG)$ $(GOOGL)$, which has announced $70 billion in buyback authorizations in recent years.\"They're two different companies, with two different business models, but they do play in the technology universe,\" she said. And given the big growth in both businesses, \"shareholders will start to ask questions about the law of big numbers,\" or how much more growth potential is out there for companies this large.In that sense, \"it's always good to see that a company acknowledges that it's doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,\" Otto added.Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a \"terrific platform\" but executives may have realized that it's time to \"think about...shareholders in a different way.\"Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research's Ben Reitzes noted that \"if shares fall,\" Nvidia now has \"a big buyback lever.\"Prior to Nvidia's report, he estimated that the company could churn out $270 billion in free cash flow within three years. \"Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,\" he wrote earlier in August.Nvidia's buyback announcement ties with Meta Platforms Inc.'s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. $(AAPL)$ ($110 billion) and Alphabet have unveiled bigger ones.Looking beyond the year, Nvidia's announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.The buyback authorization is 1.7% the size of Nvidia's market capitalization, which is about $2.91 trillion.StoneX senior strategist James Stanley noted that the buyback program wasn't enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.Stanley doesn't fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan \"just makes sense\" for the Nvidia CEO.\"But it also sounds a little bit different when you're using treasury funds to buy that same stock at or near all-time highs,\" he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.While some analysts see Nvidia's stock as cheap, Stanley thinks it's \"richly valued\" trading at a multiple of 37 times price to sales as of Thursday.At the same time, Stanley can see why Nvidia isn't pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company's artificial-intelligence hardware.\"We have a recent cautionary tale with Tesla,\" which \"essentially overbuilt with capacity.\" Tesla has now \" found themselves in this Catch-22 where if they cut production, they're also going to be taking hit on margins, because they have so much capacity,\" he said.In his view, it's \"almost justifiable\" for Nvidia to \"lean towards more demand than oversupply.\"In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. \"We assume most future deals will be rather small,\" he wrote.","news_type":1},"isVote":1,"tweetType":1,"viewCount":93,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410751127576,"gmtCreate":1725077526430,"gmtModify":1725077528325,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410751127576","repostId":"2463986757","repostType":2,"repost":{"id":"2463986757","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1725067421,"share":"https://ttm.financial/m/news/2463986757?lang=&edition=fundamental","pubTime":"2024-08-31 09:23","market":"us","language":"en","title":"Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?","url":"https://stock-news.laohu8.com/highlight/detail?id=2463986757","media":"Dow Jones","summary":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $$ bought back nearly $15 billion in stock during the first half of its fiscal year, ","content":"<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNvidia's Stock-Buyback Plan Is One of the Biggest of 2024. Is That a Good Thing?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-08-31 09:23</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.</p><p>The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That&#39;s double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.</p><p>Nvidia <a href=\"https://laohu8.com/S/NVDA\">$(NVDA)$</a> bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.</p><p>But is the upsized program a good signal for investors? There&#39;s some debate among analysts.</p><p>When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.</p><p>&#34;When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,&#34; S&amp;P Visible Alpha TMT analyst Melissa Otto told MarketWatch.</p><p>She likened Nvidia&#39;s move to ones made by Alphabet Inc. <a href=\"https://laohu8.com/S/GOOG\">$(GOOG)$</a> <a href=\"https://laohu8.com/S/GOOGL\">$(GOOGL)$</a>, which has announced $70 billion in buyback authorizations in recent years.</p><p>&#34;They&#39;re two different companies, with two different business models, but they do play in the technology universe,&#34; she said. And given the big growth in both businesses, &#34;shareholders will start to ask questions about the law of big numbers,&#34; or how much more growth potential is out there for companies this large.</p><p>In that sense, &#34;it&#39;s always good to see that a company acknowledges that it&#39;s doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,&#34; Otto added.</p><p>Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a &#34;terrific platform&#34; but executives may have realized that it&#39;s time to &#34;think about...shareholders in a different way.&#34;</p><p>Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research&#39;s Ben Reitzes noted that &#34;if shares fall,&#34; Nvidia now has &#34;a big buyback lever.&#34;</p><p>Prior to Nvidia&#39;s report, he estimated that the company could churn out $270 billion in free cash flow within three years. &#34;Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,&#34; he wrote earlier in August.</p><p>Nvidia&#39;s buyback announcement ties with <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc.&#39;s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. <a href=\"https://laohu8.com/S/AAPL\">$(AAPL)$</a> ($110 billion) and Alphabet have unveiled bigger ones.</p><p>Looking beyond the year, Nvidia&#39;s announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.</p><p>The buyback authorization is 1.7% the size of Nvidia&#39;s market capitalization, which is about $2.91 trillion.</p><p>StoneX senior strategist James Stanley noted that the buyback program wasn&#39;t enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.</p><p>Stanley doesn&#39;t fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan &#34;just makes sense&#34; for the Nvidia CEO.</p><p>&#34;But it also sounds a little bit different when you&#39;re using treasury funds to buy that same stock at or near all-time highs,&#34; he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.</p><p>While some analysts see Nvidia&#39;s stock as cheap, Stanley thinks it&#39;s &#34;richly valued&#34; trading at a multiple of 37 times price to sales as of Thursday.</p><p>At the same time, Stanley can see why Nvidia isn&#39;t pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company&#39;s artificial-intelligence hardware.</p><p>&#34;We have a recent cautionary tale with Tesla,&#34; which &#34;essentially overbuilt with capacity.&#34; Tesla has now &#34; found themselves in this Catch-22 where if they cut production, they&#39;re also going to be taking hit on margins, because they have so much capacity,&#34; he said.</p><p>In his view, it&#39;s &#34;almost justifiable&#34; for Nvidia to &#34;lean towards more demand than oversupply.&#34;</p><p>In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.</p><p>Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. &#34;We assume most future deals will be rather small,&#34; he wrote.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4571":"数字音乐概念","BK4507":"流媒体概念","BK4576":"AR","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","BK4575":"芯片概念","BK4566":"资本集团","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","BK4525":"远程办公概念","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","LU0079474960.USD":"联博美国增长基金A","BK4524":"宅经济概念","BK4527":"明星科技股","BK4501":"段永平概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","LU0109392836.USD":"富兰克林科技股A","BK4503":"景林资产持仓","NVDA":"英伟达","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","BK4551":"寇图资本持仓","BK4574":"无人驾驶","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","BK4573":"虚拟现实","BK4561":"索罗斯持仓","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4505":"高瓴资本持仓","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BK4581":"高盛持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0215105999.USD":"SCHRODER ISF GLOBAL EQUITY \"A\" ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0971096721.USD":"富达环球金融服务 A","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4529":"IDC概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463986757","content_text":"Nvidia Corp. is throwing off cash, and the company plans to return even more of that to investors.The semiconductor company announced alongside its earnings on Wednesday that it has boosted its stock buyback authorization by $50 billion. That's double the size of the $25 billion share-repurchase program announced a year ago, which still had $7.5 billion remaining on it as of the end of the latest quarter.Nvidia $(NVDA)$ bought back nearly $15 billion in stock during the first half of its fiscal year, and the scale of the new program suggests the company could ramp up repurchases going forward.But is the upsized program a good signal for investors? There's some debate among analysts.When companies buy back stock, that reduces the count of shares outstanding and thereby can give a boost to earnings per share, since the denominator is lower.\"When we see a company do a buyback, pretty typically, there is a view that the company is taking shareholder interests to heart and trying to align in that way,\" S&P Visible Alpha TMT analyst Melissa Otto told MarketWatch.She likened Nvidia's move to ones made by Alphabet Inc. $(GOOG)$ $(GOOGL)$, which has announced $70 billion in buyback authorizations in recent years.\"They're two different companies, with two different business models, but they do play in the technology universe,\" she said. And given the big growth in both businesses, \"shareholders will start to ask questions about the law of big numbers,\" or how much more growth potential is out there for companies this large.In that sense, \"it's always good to see that a company acknowledges that it's doing well...but at the same time, needs to think about the way to reward shareholders in addition to the fundamentals of its business,\" Otto added.Fundamentally, in her view, the job of management teams is to think about shareholder value. When it comes to the question of how to spend an amount like $50 billion, Otto noted that Nvidia has already built a \"terrific platform\" but executives may have realized that it's time to \"think about...shareholders in a different way.\"Typically with buybacks, companies look to make repurchases when they see shares as undervalued. Melius Research's Ben Reitzes noted that \"if shares fall,\" Nvidia now has \"a big buyback lever.\"Prior to Nvidia's report, he estimated that the company could churn out $270 billion in free cash flow within three years. \"Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders since there will be nowhere else for it to go,\" he wrote earlier in August.Nvidia's buyback announcement ties with Meta Platforms Inc.'s (META) as the third-largest of the year, according to data from Birinyi Associates. Only Apple Inc. $(AAPL)$ ($110 billion) and Alphabet have unveiled bigger ones.Looking beyond the year, Nvidia's announcement is tied for the 12th-largest on record. The company is one of only seven in the U.S. to have announced a buyback program of $50 billion or more.The buyback authorization is 1.7% the size of Nvidia's market capitalization, which is about $2.91 trillion.StoneX senior strategist James Stanley noted that the buyback program wasn't enough to excite investors and might not make sense at a time when Chief Executive Jensen Huang has been selling stock through a trading plan.Stanley doesn't fault Huang for unloading stock after a massive run for the shares over two years, and he said a selling plan \"just makes sense\" for the Nvidia CEO.\"But it also sounds a little bit different when you're using treasury funds to buy that same stock at or near all-time highs,\" he noted. Nvidia shares closed Wednesday, just before the earnings and buyback announcement, off 7% from their record close of $135.58 that was hit in June.While some analysts see Nvidia's stock as cheap, Stanley thinks it's \"richly valued\" trading at a multiple of 37 times price to sales as of Thursday.At the same time, Stanley can see why Nvidia isn't pouring its cash into improving infrastructure capacity at a time when demand still outstrips supply for the company's artificial-intelligence hardware.\"We have a recent cautionary tale with Tesla,\" which \"essentially overbuilt with capacity.\" Tesla has now \" found themselves in this Catch-22 where if they cut production, they're also going to be taking hit on margins, because they have so much capacity,\" he said.In his view, it's \"almost justifiable\" for Nvidia to \"lean towards more demand than oversupply.\"In the current regulatory climate, Nvidia may also have trouble doing major deals with its troves of cash.Gimme Credit analyst Dave Novosel noted that Nvidia spent about $300 million on acquisitions in the first half of the fiscal year. \"We assume most future deals will be rather small,\" he wrote.","news_type":1},"isVote":1,"tweetType":1,"viewCount":109,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410751946784,"gmtCreate":1725077430895,"gmtModify":1725077433064,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410751946784","repostId":"2463421513","repostType":2,"repost":{"id":"2463421513","pubTimestamp":1725067525,"share":"https://ttm.financial/m/news/2463421513?lang=&edition=fundamental","pubTime":"2024-08-31 09:25","market":"hk","language":"en","title":"Microsoft's Share Price Is Still Not Justified","url":"https://stock-news.laohu8.com/highlight/detail?id=2463421513","media":"seekingalpha","summary":"Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering ","content":"<html><head></head><body><ul style=\"\"><li><p>Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.</p></li><li><p>Nevertheless, we should not ignore the risk of a potential recession, and considering the high growth rates necessary for Microsoft to be fairly valued, we should be rather cautious.</p></li><li><p>In my opinion, Microsoft remains a &#34;Hold&#34;</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/13e99f9f9438476230d926c211f5d198\" tg-width=\"750\" tg-height=\"563\"/></p><p>NguyenDucQuang/iStock Editorial via Getty Images</p><p></p><p>My last article about Microsoft Corporation (NASDAQ:MSFT) was published in December 2023, a few days before Christmas. And similar to previous articles about Microsoft, I rated the stock as a “Hold”. In the meantime, the stock increased about 11.5% while the S&amp;P 500 (SPY) increased 18.5% in the same timeframe. Hence, Microsoft would have not been the best investment, but it also wasn’t a terrible investment.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/469ab6ca09e9ff0a744523d2497e3d33\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p></p><p>In the last few weeks, Microsoft declined about 15% from its previous all-time high and while some other analysts are arguing this is a buying opportunity, I still think Microsoft is a “Hold” at best and in the following article I will explain why Microsoft is still not a great investment at this point.</p><h2 id=\"id_805714819\">Quarterly Results</h2><p>As usual, we start by looking at the quarterly and full-year results of fiscal 2024, which Microsoft reported on July 30, 2024. Microsoft did once again beat estimates, but only slightly. Revenue was $260 million higher than expectations (compared to $64 billion in quarterly revenue) and earnings per share did beat estimates by $0.02.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/76f39fc461f848f730a2c96e73a679ab\" tg-width=\"640\" tg-height=\"361\"/></p><p>Microsoft Q424 Presentation</p><p></p><p>Similar to the last few quarters and years, Microsoft reported great metrics and high year-over-year growth. Total revenue in Q4/24 was $64,727 million and compared to $56,189 million in Q4/23 this is resulting in 15.2% year-over-year growth. While revenue from products declined from $16,853 million in the same quarter last year to $13,217 million this quarter (resulting in a 21.6% YoY decline), revenue from “Service and other” increased 30.9% YoY from $39,336 million in Q4/23 to $51,510 million in Q4/24. And operating income increased from $24,254 million in the same quarter last year to $27,925 million this quarter – an increase of 15.1% YoY. Finally, diluted earnings per share increased 9.7% YoY from $2.69 in the same quarter last year to $2.95 this quarter.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/69d7a84badb62af5895ea889709db320\" tg-width=\"640\" tg-height=\"488\"/></p><p>Microsoft Q4/24 Earnings Release</p><p></p><p>And the picture for the full-year results is quite similar. Total revenue increased from $211,915 million to $245,122 million and growth was once again driven by “Service and Other” while revenue for “Products” stagnated year-over-year. And while the top line grew 15.7% year-over-year, operating income increased 23.6% YoY from $88,523 million in the same quarter last year to $109,443 million this quarter. Finally, diluted earnings per share increased from $9.68 to $11.80 – 21.9% YoY growth.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91276bd044263791954a17dba94db716\" tg-width=\"635\" tg-height=\"456\"/></p><p>Data by YCharts</p><p></p><p>Looking at the results of only a few quarters is seldom enough for a reasonable picture of a business. However, when looking at the results of the last five years we see some fluctuations for earnings per share and free cash flow, but overall, the company grew with a solid pace and high levels of consistency.</p><p>And while there are some differences in growth rates for the three business segments, all grew in the double digits, with <em>Productivity and Business Processes</em> growing only 11% YoY to $20.3 billion in Q4/24 and <em>Intelligent Cloud</em> increasing 19% YoY to $28.5 billion in revenue. The third business segment, <em>More Personal Computing,</em> was in-between these two with 14% year-over-year growth to $15.9 billion quarterly revenue.</p><h2 id=\"id_2415353957\">New Reporting Structure</h2><p>The above-mentioned quarterly results are still according to the old business structure. Last week, on August 21, 2024, Microsoft reported changes for its reporting segments and investor metric changes. The three major segments remain the same, but several subsegments have been restructured.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/56eeb86b6425a8512e2df5ba75baeb74\" tg-width=\"640\" tg-height=\"359\"/></p><p>Microsoft Fiscal 2025 Investor Metrics</p><p></p><p>Especially the new subsegment “Microsoft 365 commercial products and cloud services” has now several business parts included which were previously part of other segments: <em>Windows Commercial Cloud </em>was previously a part of “More Personal Computing” and <em>EMS &amp; Power BI per-use</em>r was previously a part of “Intelligent Cloud”.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ab003974a1ddf8bd1c6adc3587fc671c\" tg-width=\"640\" tg-height=\"358\"/></p><p>Microsoft Fiscal 2025 Investor Metrics</p><p></p><p>And as a consequence of the new reporting structure, Microsoft also updated its guidance for the first quarter of fiscal 2025. Overall revenue estimates remain the same, but of course, the estimates for the three different segments changed.</p><h2 id=\"id_991689993\">Outlook: Growth, Recession and Moat</h2><p>While Microsoft had its first quarter guidance remain the same, analysts actually lowered expectations for the coming quarters constantly in the last few months. Estimates for revenue were lowered a little bit, and estimates for earnings per share were lowered a little bit more. And the changes are hardly visible in the chart, but I still think it is worth mentioning at this point. In the last three months we saw 27 down revisions for revenue (and not a singe up revision) and in the case of earnings per share, 5 analysts increased EPS estimates while 17 lowered estimates.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/31c5a91065f8de2a4e0462d129b65f23\" tg-width=\"640\" tg-height=\"355\"/></p><p>Microsoft Quarterly EPS Estimates Revisions (Seeking Alpha)</p><p></p><p>On the other hand, we should not ignore that analysts are still extremely optimistic for the years to come. Over the next ten years, analysts are expecting revenue to increase with a CAGR of 11.50% and revenue will increase from about $245 billion right now to almost $730 billion in fiscal 2034. And when looking at estimates for earnings per share, analysts are expecting the bottom line to grow with a CAGR of 12.90% over the next ten years.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a5ecb3a025f8c9eadbbecd35af8d3c1d\" tg-width=\"640\" tg-height=\"358\"/></p><p>Microsoft Consensus EPS Estimates (Seeking Alpha)</p><p></p><p>While estimates were slightly lowered for the next few quarters, the core message is that analysts are extremely optimistic for the next few years and expect 12% growth in fiscal 2025, 16% growth in fiscal 2026 and 17% growth in fiscal 2027. But as I have pointed out in several articles in the last few weeks (see for example my article about Simon Property Group (SPG) and Amazon.com (AMZN) as well as Alphabet (GOOG)) I see the United States on its way into a recession. The yield curve, initial claims for unemployment, housing permits, bankruptcies and Sahm Rule are giving us strong warning signals (once again, see previous articles mentioned above).</p><p>And Microsoft certainly has a wide economic moat around its business that will protect the company against competitors and probably lead to stable revenue. But I certainly don’t think Microsoft can continue to grow with a similar pace as in the last few years.</p><p>We can still be very optimistic about the cloud infrastructure market growing with a high pace in the years to come. But we don’t really know how this market will perform during a recession as this market is a rather young market, which did not exist during a previous recession – aside from the 2020 COVID recession (a recession that was different in many ways). We can assume that revenue will be rather stable (or maybe even continue to grow slightly) but I think the following estimates might be too optimistic.</p><p>But as long as we are talking about the cloud business, we should also point out that Microsoft constantly increased its market share. While Amazon remains market leader with a market share slightly above 30%, Microsoft Azure improved its market share from slightly above 15% in 2018 to about 25% right now.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/dec22adeded40551d8cf1a06998ec506\" tg-width=\"640\" tg-height=\"407\"/></p><p>Global Cloud Market Shares (Statista)</p><p></p><p>When combining an overall growing market with Microsoft’s ability to gain market shares, we can be quite optimistic for the future – but maybe not for the next few years.</p><p>While the cloud business is certainly important and one of the drivers of growth, Microsoft is a much more diversified business, and we should not ignore its bread-and-butter business – Windows or Office products for example. And Microsoft is such a great business as almost every business segment has a wide economic moat built around the business. Aside from the brand name, we are especially talking about switching costs. Almost every product is deeply embedded in the personal life or business structure and switching to the products of a competitor is extremely difficult. Retraining the staff of an entire company to use iOS instead of Windows is not only expensive but will impact the everyday working life probably for several weeks. Moving applications and data from one cloud provider to another will also not only take a lot of time, but once again impact everyday working life for many employees. And in case of LinkedIn, the company can rely on strong network effects – only gaming revenue might suffer during a recession as this can be seen as a leisure product and rather cyclical.</p><p>In case of a recession, we can assume that Microsoft won’t be able to gain new customers, or existing customers won’t switch to better and more expensive products, but it might be able to keep its existing customers and keep revenue at least stable. But as we will see in the following section, Microsoft must grow with a very high pace in the next few years to be fairly valued right now.</p><h2 id=\"id_1769483706\">Intrinsic Value Calculation</h2><p>One of the major reasons for me being rather cautious in the last few quarters was the stock price we must pay for Microsoft and the valuation multiples the stock was trading for. And when looking at the valuation multiples right now, the picture did not really improve. At the time of writing, Microsoft is still trading for 35 times earnings as well as 42 times free cash flow. Both metrics are not only above the 10-year average (32.23 for the P/E ratio and 28.01 for the P/FCF ratio) but are high valuation multiples on an absolute basis.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/facb1cebca93973b3f72c2de88b39758\" tg-width=\"635\" tg-height=\"439\"/></p><p>Data by YCharts</p><p></p><p>And as we saw above, Microsoft constantly improved earnings per share and free cash flow in the last few years and therefore the high valuation multiples are not the result of a declining bottom line.</p><p>To get a better picture and maybe more precise intrinsic value for Microsoft, we can use a discount cash flow calculation. As always, we are calculating with a 10% discount rate, as this is the return we like to achieve at least. And we are calculating with the last reported number of outstanding diluted shares (7,472 million). Now we must make some estimates for free cash flow in the next few years and growth rates that are realistic for Microsoft. As a starting point, we can use the free cash flow of the last four quarters, which was $74 billion and instead of making estimates about free cash flow and growth rates, let’s look at the share price from a different perspective. In order to be fairly valued right now, Microsoft must grow free cash flow 18% annually for the next ten years, followed by 4% growth till perpetuity.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/427d47675a94e197fa060753c448e555\" tg-width=\"635\" tg-height=\"486\"/></p><p>Data by YCharts</p><p></p><p>Now, let’s provide a little more context to these numbers. For starters, the free cash flow is the highest it has ever been. And in the case of Microsoft, free cash flow is constantly increasing, but there is some risk we are close to a cycle peak and lower free cash flow in the next few quarters is certainly a possibility.</p><p>Additionally, 18% growth for the next 10 years is very ambitious. When looking at the last 10 years, which have certainly been successful years for Microsoft, earnings per share increased “only” with a CAGR of 16.20% and – as mentioned above – analysts expect earnings per share to grow with a CAGR of 13% in the next ten years. Overall, I would not bet on Microsoft growing 18% annually in the next ten years – especially considering a potential recession and free cash flow already being extremely high. On the other hand, we should point out that free cash flow conversion has been pretty stable in the last few years.</p><p>And finally, we can look at the growth rate until perpetuity. In the past, I often calculated with 6% growth until perpetuity (and I still think it is possible to justify these higher terminal growth rates for high quality businesses). Nevertheless, it also seems reasonable to be a little more cautious and follow the recommendations of the CFI (and others) and use a lower terminal growth rate, but due to the high-quality business, 4% seems certainly reasonable.</p><h2 id=\"id_2737621473\">Conclusion</h2><p>I still see Microsoft as a “Hold” at this point. Microsoft is undoubtedly a great business and probably will be able to perform well even in times of a recession. However, considering the current share price, we can’t see Microsoft as a good investment at this point.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Microsoft's Share Price Is Still Not Justified</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMicrosoft's Share Price Is Still Not Justified\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-31 09:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering ...</p>\n\n<a href=\"https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4592":"伊斯兰概念","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","MSFT":"微软","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0080751232.USD":"富达环球多元动力基金A","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4077":"互动媒体与服务","BK4579":"人工智能","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","LU0096362180.USD":"CT (LUX) I GLOBAL FOCUS \"DU\" (USD)","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU0203201768.USD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"AX\" (USD) INC","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","BK4581":"高盛持仓","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE000YTNTUN2.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG)INC","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","IE000KEQY171.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) INC","BK4514":"搜索引擎","BK4516":"特朗普概念"},"source_url":"https://seekingalpha.com/article/4718008-microsofts-share-price-is-still-not-justified","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2463421513","content_text":"Microsoft is continuing to report great results quarter after quarter and is still optimistic for the coming year.Nevertheless, we should not ignore the risk of a potential recession, and considering the high growth rates necessary for Microsoft to be fairly valued, we should be rather cautious.In my opinion, Microsoft remains a \"Hold\"NguyenDucQuang/iStock Editorial via Getty ImagesMy last article about Microsoft Corporation (NASDAQ:MSFT) was published in December 2023, a few days before Christmas. And similar to previous articles about Microsoft, I rated the stock as a “Hold”. In the meantime, the stock increased about 11.5% while the S&P 500 (SPY) increased 18.5% in the same timeframe. Hence, Microsoft would have not been the best investment, but it also wasn’t a terrible investment.Data by YChartsIn the last few weeks, Microsoft declined about 15% from its previous all-time high and while some other analysts are arguing this is a buying opportunity, I still think Microsoft is a “Hold” at best and in the following article I will explain why Microsoft is still not a great investment at this point.Quarterly ResultsAs usual, we start by looking at the quarterly and full-year results of fiscal 2024, which Microsoft reported on July 30, 2024. Microsoft did once again beat estimates, but only slightly. Revenue was $260 million higher than expectations (compared to $64 billion in quarterly revenue) and earnings per share did beat estimates by $0.02.Microsoft Q424 PresentationSimilar to the last few quarters and years, Microsoft reported great metrics and high year-over-year growth. Total revenue in Q4/24 was $64,727 million and compared to $56,189 million in Q4/23 this is resulting in 15.2% year-over-year growth. While revenue from products declined from $16,853 million in the same quarter last year to $13,217 million this quarter (resulting in a 21.6% YoY decline), revenue from “Service and other” increased 30.9% YoY from $39,336 million in Q4/23 to $51,510 million in Q4/24. And operating income increased from $24,254 million in the same quarter last year to $27,925 million this quarter – an increase of 15.1% YoY. Finally, diluted earnings per share increased 9.7% YoY from $2.69 in the same quarter last year to $2.95 this quarter.Microsoft Q4/24 Earnings ReleaseAnd the picture for the full-year results is quite similar. Total revenue increased from $211,915 million to $245,122 million and growth was once again driven by “Service and Other” while revenue for “Products” stagnated year-over-year. And while the top line grew 15.7% year-over-year, operating income increased 23.6% YoY from $88,523 million in the same quarter last year to $109,443 million this quarter. Finally, diluted earnings per share increased from $9.68 to $11.80 – 21.9% YoY growth.Data by YChartsLooking at the results of only a few quarters is seldom enough for a reasonable picture of a business. However, when looking at the results of the last five years we see some fluctuations for earnings per share and free cash flow, but overall, the company grew with a solid pace and high levels of consistency.And while there are some differences in growth rates for the three business segments, all grew in the double digits, with Productivity and Business Processes growing only 11% YoY to $20.3 billion in Q4/24 and Intelligent Cloud increasing 19% YoY to $28.5 billion in revenue. The third business segment, More Personal Computing, was in-between these two with 14% year-over-year growth to $15.9 billion quarterly revenue.New Reporting StructureThe above-mentioned quarterly results are still according to the old business structure. Last week, on August 21, 2024, Microsoft reported changes for its reporting segments and investor metric changes. The three major segments remain the same, but several subsegments have been restructured.Microsoft Fiscal 2025 Investor MetricsEspecially the new subsegment “Microsoft 365 commercial products and cloud services” has now several business parts included which were previously part of other segments: Windows Commercial Cloud was previously a part of “More Personal Computing” and EMS & Power BI per-user was previously a part of “Intelligent Cloud”.Microsoft Fiscal 2025 Investor MetricsAnd as a consequence of the new reporting structure, Microsoft also updated its guidance for the first quarter of fiscal 2025. Overall revenue estimates remain the same, but of course, the estimates for the three different segments changed.Outlook: Growth, Recession and MoatWhile Microsoft had its first quarter guidance remain the same, analysts actually lowered expectations for the coming quarters constantly in the last few months. Estimates for revenue were lowered a little bit, and estimates for earnings per share were lowered a little bit more. And the changes are hardly visible in the chart, but I still think it is worth mentioning at this point. In the last three months we saw 27 down revisions for revenue (and not a singe up revision) and in the case of earnings per share, 5 analysts increased EPS estimates while 17 lowered estimates.Microsoft Quarterly EPS Estimates Revisions (Seeking Alpha)On the other hand, we should not ignore that analysts are still extremely optimistic for the years to come. Over the next ten years, analysts are expecting revenue to increase with a CAGR of 11.50% and revenue will increase from about $245 billion right now to almost $730 billion in fiscal 2034. And when looking at estimates for earnings per share, analysts are expecting the bottom line to grow with a CAGR of 12.90% over the next ten years.Microsoft Consensus EPS Estimates (Seeking Alpha)While estimates were slightly lowered for the next few quarters, the core message is that analysts are extremely optimistic for the next few years and expect 12% growth in fiscal 2025, 16% growth in fiscal 2026 and 17% growth in fiscal 2027. But as I have pointed out in several articles in the last few weeks (see for example my article about Simon Property Group (SPG) and Amazon.com (AMZN) as well as Alphabet (GOOG)) I see the United States on its way into a recession. The yield curve, initial claims for unemployment, housing permits, bankruptcies and Sahm Rule are giving us strong warning signals (once again, see previous articles mentioned above).And Microsoft certainly has a wide economic moat around its business that will protect the company against competitors and probably lead to stable revenue. But I certainly don’t think Microsoft can continue to grow with a similar pace as in the last few years.We can still be very optimistic about the cloud infrastructure market growing with a high pace in the years to come. But we don’t really know how this market will perform during a recession as this market is a rather young market, which did not exist during a previous recession – aside from the 2020 COVID recession (a recession that was different in many ways). We can assume that revenue will be rather stable (or maybe even continue to grow slightly) but I think the following estimates might be too optimistic.But as long as we are talking about the cloud business, we should also point out that Microsoft constantly increased its market share. While Amazon remains market leader with a market share slightly above 30%, Microsoft Azure improved its market share from slightly above 15% in 2018 to about 25% right now.Global Cloud Market Shares (Statista)When combining an overall growing market with Microsoft’s ability to gain market shares, we can be quite optimistic for the future – but maybe not for the next few years.While the cloud business is certainly important and one of the drivers of growth, Microsoft is a much more diversified business, and we should not ignore its bread-and-butter business – Windows or Office products for example. And Microsoft is such a great business as almost every business segment has a wide economic moat built around the business. Aside from the brand name, we are especially talking about switching costs. Almost every product is deeply embedded in the personal life or business structure and switching to the products of a competitor is extremely difficult. Retraining the staff of an entire company to use iOS instead of Windows is not only expensive but will impact the everyday working life probably for several weeks. Moving applications and data from one cloud provider to another will also not only take a lot of time, but once again impact everyday working life for many employees. And in case of LinkedIn, the company can rely on strong network effects – only gaming revenue might suffer during a recession as this can be seen as a leisure product and rather cyclical.In case of a recession, we can assume that Microsoft won’t be able to gain new customers, or existing customers won’t switch to better and more expensive products, but it might be able to keep its existing customers and keep revenue at least stable. But as we will see in the following section, Microsoft must grow with a very high pace in the next few years to be fairly valued right now.Intrinsic Value CalculationOne of the major reasons for me being rather cautious in the last few quarters was the stock price we must pay for Microsoft and the valuation multiples the stock was trading for. And when looking at the valuation multiples right now, the picture did not really improve. At the time of writing, Microsoft is still trading for 35 times earnings as well as 42 times free cash flow. Both metrics are not only above the 10-year average (32.23 for the P/E ratio and 28.01 for the P/FCF ratio) but are high valuation multiples on an absolute basis.Data by YChartsAnd as we saw above, Microsoft constantly improved earnings per share and free cash flow in the last few years and therefore the high valuation multiples are not the result of a declining bottom line.To get a better picture and maybe more precise intrinsic value for Microsoft, we can use a discount cash flow calculation. As always, we are calculating with a 10% discount rate, as this is the return we like to achieve at least. And we are calculating with the last reported number of outstanding diluted shares (7,472 million). Now we must make some estimates for free cash flow in the next few years and growth rates that are realistic for Microsoft. As a starting point, we can use the free cash flow of the last four quarters, which was $74 billion and instead of making estimates about free cash flow and growth rates, let’s look at the share price from a different perspective. In order to be fairly valued right now, Microsoft must grow free cash flow 18% annually for the next ten years, followed by 4% growth till perpetuity.Data by YChartsNow, let’s provide a little more context to these numbers. For starters, the free cash flow is the highest it has ever been. And in the case of Microsoft, free cash flow is constantly increasing, but there is some risk we are close to a cycle peak and lower free cash flow in the next few quarters is certainly a possibility.Additionally, 18% growth for the next 10 years is very ambitious. When looking at the last 10 years, which have certainly been successful years for Microsoft, earnings per share increased “only” with a CAGR of 16.20% and – as mentioned above – analysts expect earnings per share to grow with a CAGR of 13% in the next ten years. Overall, I would not bet on Microsoft growing 18% annually in the next ten years – especially considering a potential recession and free cash flow already being extremely high. On the other hand, we should point out that free cash flow conversion has been pretty stable in the last few years.And finally, we can look at the growth rate until perpetuity. In the past, I often calculated with 6% growth until perpetuity (and I still think it is possible to justify these higher terminal growth rates for high quality businesses). Nevertheless, it also seems reasonable to be a little more cautious and follow the recommendations of the CFI (and others) and use a lower terminal growth rate, but due to the high-quality business, 4% seems certainly reasonable.ConclusionI still see Microsoft as a “Hold” at this point. Microsoft is undoubtedly a great business and probably will be able to perform well even in times of a recession. However, considering the current share price, we can’t see Microsoft as a good investment at this point.","news_type":1},"isVote":1,"tweetType":1,"viewCount":105,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":344410226815104,"gmtCreate":1725077303175,"gmtModify":1725077306755,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344410226815104","repostId":"2463821795","repostType":2,"repost":{"id":"2463821795","pubTimestamp":1724986833,"share":"https://ttm.financial/m/news/2463821795?lang=&edition=fundamental","pubTime":"2024-08-30 11:00","market":"sg","language":"en","title":"Singapore's Top 10 Most Important REITs","url":"https://stock-news.laohu8.com/highlight/detail?id=2463821795","media":"The Smart Investor","summary":"There are over 40 REITs and property trusts in Singapore. The top 10 REITs account for close to 70% of the S-REIT index, giving the group an outsized influence over the index’s movements.","content":"<html><head></head><body><p>Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).</p><p>As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the Lion City’s total stock market capitalisation. </p><p>This figure is significantly higher than other Asian countries, such as Japan (3.5%),  Hong Kong (3.3%), China (3.2%), Malaysia (2.4%), and India (1.8%), highlighting the importance of the S-REITs sector to the local bourse.</p><p>The most closely watched REIT index in Singapore is the iEdge S-REIT index. </p><p>This index tracks the performance of a basket of S-REITs and is regarded as Singapore’s benchmark for the sector.</p><h2 id=\"id_2946570724\">The heavyweights of the S-REIT sector</h2><p>The iEdge S-REIT Index is weighted by market capitalization. </p><p>While the index comprises 31 REITs, the top 10 largest companies exert a disproportionate influence due to their substantial market value.</p><p>Let’s delve into the 10 biggest constituents of the index.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7a78e4273d2ac85bd00700ba9a35bf87\" alt=\"Source: iEdge S-REIT Indices factsheet, as of 31 July 2024\" title=\"Source: iEdge S-REIT Indices factsheet, as of 31 July 2024\" tg-width=\"1024\" tg-height=\"784\"/><span>Source: iEdge S-REIT Indices factsheet, as of 31 July 2024</span></p><h2 id=\"id_3613652925\">The Big 10 REITs in Singapore</h2><p>The top 10 REITs make up the lion’s share of the iEdge S-REIT index, accounting for nearly 70% of its weightage.  </p><p>Notably, the two largest REITs, namely <a href=\"https://laohu8.com/S/C38U.SI\">CapitaLand Integrated Commercial Trust</a>, or CICT, and <a href=\"https://laohu8.com/S/A17U.SI\">CapitaLand Ascendas REIT</a>, or CLAR, share a common sponsor, <a href=\"https://laohu8.com/S/9CI.SI\">CapitaLand Investment Limited</a>.</p><p>As of 31 July 2024, CICT sports a market capitalisation of S$13.5 billion while CLAR weighed in at S$11.9 billion. Together, they account for over a fifth of the iEdge S-REIT index. </p><p>Incidentally, both are also key components in Singapore’s Straits Times Index.</p><p>Another CapitaLand-affiliated REIT, <a href=\"https://laohu8.com/S/HMN.SI\">CapitaLand Ascott Trust</a>, accounts for 4.32% of the index’s weightage.  </p><p>Beyond CapitaLand, Beyond CapitaLand, the Mapletree group also significantly contributes to the index with three REITs: <a href=\"https://laohu8.com/S/ME8U.SI\">Mapletree Industrial Trust</a>, <a href=\"https://laohu8.com/S/M44U.SI\">Mapletree Logistics Trust</a> and <a href=\"https://laohu8.com/S/N2IU.SI\">Mapletree Pan Asia Commercial Trust</a>.</p><p>Collectively, these Mapletree REITs contribute more than a quarter of the index’s weightage and boast a combined market capitalization of nearly S$20 billion. </p><p>Like CICT and CLAR, all three Mapletree REITs are also part of Singapore’s STI. </p><p>Joining the CapitaLand and Mapletree REITs in the top 10 are the Frasers pair, <a href=\"https://laohu8.com/S/J69U.SI\">Frasers Centrepoint Trust</a>, or FCT, and <a href=\"https://laohu8.com/S/BUOU.SI\">Frasers Logistics and Commercial Trust</a>, or FLCT. </p><p>Together, they are valued at around S$7.5 billion, account for close to 10% of the index’s weightage and are also part of the STI.</p><p>Rounding out the list is another pair from Keppel, namely <a href=\"https://laohu8.com/S/AJBU.SI\">Keppel DC REIT</a> and <a href=\"https://laohu8.com/S/K71U.SI\">Keppel REIT</a>. The two REITs contribute roughly 9.6% of the index weight and sport a combined market cap of around S$6.8 billion. </p><h2 id=\"id_246507244\">The hope and pain of interest rates </h2><p>As a whole, the Top 10 REITs in the iEdge S-REIT index provides investors with exposure to the traditional property sectors such as industrial, retail and commercial. </p><p>Interest rates have been a bane to the industry since late 2022.</p><p>However, there could be light at the end of the tunnel with the US Federal Reserve signalling a possible interest rate cut soon.</p><p>Attention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.</p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singapore's Top 10 Most Important REITs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingapore's Top 10 Most Important REITs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-30 11:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU2088748020.USD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"ADM\" (USD) INC A","SG9999001135.SGD":"United ASEAN Fund SGD","SG9999014302.SGD":"RHB Singapore Income Fund SGD","C38U.SI":"凯德商用新加坡信托","BUOU.SI":"星狮物流工业信托","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","BK6089":"酒店及度假村房地产投资信托","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","9CI.SI":"凯德投资","LU2088748376.SGD":"Eastspring Investments - Asia Real Estate Multi Asset Income Cl ASDM SGD-H","BK6505":"周期性消费品与消费者服务","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","ME8U.SI":"丰树工业信托","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SG9999003826.SGD":"日兴资管新加坡股息基金 SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","BK6110":"房地产经营公司","K71U.SI":"吉宝房地产信托","AJBU.SI":"吉宝数据中心房地产信托","J69U.SI":"星狮地产信托","LU1316543674.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A3 SGD","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","LU0918141887.USD":"安联亚洲实际收益股票基金","SG9999001127.SGD":"United Singapore Growth Fund SGD","BN4.SI":"吉宝有限公司","SG9999002406.SGD":"利安新加坡信托基金","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","STI.SI":"富时新加坡海峡指数","LU2226123227.USD":"Janus Henderson Horizon Asia-Pacific Property Income A5m USD","A17U.SI":"凯德腾飞房产信托","LU2226123490.SGD":"Janus Henderson Horizon Asia-Pacific Property Income A5m SGD","HMN.SI":"凯德雅诗阁信托","BK6011":"零售业房地产投资信托","M44U.SI":"丰树物流信托","LU0229494975.USD":"骏利亨德森亚太地产股票基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","BK6099":"办公房地产投资信托","LU2088748293.HKD":"EASTSPRING INVESTMENTS ASIA REAL ESTATE MULTI ASSE \"AHD\" (HKD) INC","SG9999013478.USD":"利安新加坡股息基金","N2IU.SI":"丰树商业信托","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","BK6111":"工业集团企业","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD"},"source_url":"https://thesmartinvestor.com.sg/singapores-top-10-most-important-reits/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2463821795","content_text":"Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).As of 31 January 2024, Singapore’s REIT (S-REIT) sector was worth US$100 billion, accounting for 12% of the Lion City’s total stock market capitalisation. This figure is significantly higher than other Asian countries, such as Japan (3.5%),  Hong Kong (3.3%), China (3.2%), Malaysia (2.4%), and India (1.8%), highlighting the importance of the S-REITs sector to the local bourse.The most closely watched REIT index in Singapore is the iEdge S-REIT index. This index tracks the performance of a basket of S-REITs and is regarded as Singapore’s benchmark for the sector.The heavyweights of the S-REIT sectorThe iEdge S-REIT Index is weighted by market capitalization. While the index comprises 31 REITs, the top 10 largest companies exert a disproportionate influence due to their substantial market value.Let’s delve into the 10 biggest constituents of the index.Source: iEdge S-REIT Indices factsheet, as of 31 July 2024The Big 10 REITs in SingaporeThe top 10 REITs make up the lion’s share of the iEdge S-REIT index, accounting for nearly 70% of its weightage.  Notably, the two largest REITs, namely CapitaLand Integrated Commercial Trust, or CICT, and CapitaLand Ascendas REIT, or CLAR, share a common sponsor, CapitaLand Investment Limited.As of 31 July 2024, CICT sports a market capitalisation of S$13.5 billion while CLAR weighed in at S$11.9 billion. Together, they account for over a fifth of the iEdge S-REIT index. Incidentally, both are also key components in Singapore’s Straits Times Index.Another CapitaLand-affiliated REIT, CapitaLand Ascott Trust, accounts for 4.32% of the index’s weightage.  Beyond CapitaLand, Beyond CapitaLand, the Mapletree group also significantly contributes to the index with three REITs: Mapletree Industrial Trust, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust.Collectively, these Mapletree REITs contribute more than a quarter of the index’s weightage and boast a combined market capitalization of nearly S$20 billion. Like CICT and CLAR, all three Mapletree REITs are also part of Singapore’s STI. Joining the CapitaLand and Mapletree REITs in the top 10 are the Frasers pair, Frasers Centrepoint Trust, or FCT, and Frasers Logistics and Commercial Trust, or FLCT. Together, they are valued at around S$7.5 billion, account for close to 10% of the index’s weightage and are also part of the STI.Rounding out the list is another pair from Keppel, namely Keppel DC REIT and Keppel REIT. The two REITs contribute roughly 9.6% of the index weight and sport a combined market cap of around S$6.8 billion. The hope and pain of interest rates As a whole, the Top 10 REITs in the iEdge S-REIT index provides investors with exposure to the traditional property sectors such as industrial, retail and commercial. Interest rates have been a bane to the industry since late 2022.However, there could be light at the end of the tunnel with the US Federal Reserve signalling a possible interest rate cut soon.Attention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.","news_type":1},"isVote":1,"tweetType":1,"viewCount":18,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":343261198012616,"gmtCreate":1724822450565,"gmtModify":1724822452598,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/343261198012616","repostId":"2462196068","repostType":2,"repost":{"id":"2462196068","pubTimestamp":1724814215,"share":"https://ttm.financial/m/news/2462196068?lang=&edition=fundamental","pubTime":"2024-08-28 11:03","market":"fut","language":"en","title":"Amazon: This Could Be The Top","url":"https://stock-news.laohu8.com/highlight/detail?id=2462196068","media":"seekingalpha","summary":"Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro","content":"<html><head></head><body><ul style=\"\"><li><p>Amazon&#39;s shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.</p></li><li><p>Amazon has growth catalysts across the world, but faces macro risks and competition from Chinese marketplaces.</p></li><li><p>Despite potential for growth, Amazon&#39;s stock offers little margin of safety, making it a HOLD at best for investors.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/996a6ca53d678e82b3c1c9499d447ba1\" tg-width=\"750\" tg-height=\"500\"/></p><p>HJBC</p><p></p><p>After briefly reaching the $200 per share level, Amazon’s (NASDAQ:AMZN) shares have been mostly depreciating since the middle of July, primarily due to the overall market correction and the mixed earnings report that the company released a few weeks ago. While shares have recently started to gradually recover after finding a support level of around $160 per share, they are still far away from reaching the all-time levels anytime soon. Even though the company has several major growth catalysts going for it, the rising macro and China-related risks coupled with the minimal margin of safety make Amazon only a HOLD at this stage.</p><h2 id=\"id_2922773680\">The Growth Story Is Not Over Yet</h2><p>Last month before the earnings report for Q2 came in, I published an article about Amazon with a HOLD rating where I noted that even though the company is likely to continue to perform well in the foreseeable future, the rising macro risks could suppress the business’s overall upside. Since that time, Amazon’s shares have slightly depreciated and underperformed the broader market.</p><p>The poor performance of the company’s shares could be attributed to the overall market selloff that happened a few weeks ago due to the rising recession fears and also due to a mixed earnings report that Amazon released earlier this month. While the company managed to increase its revenues by 10.2% Y/Y to $148 billion in Q2, they were below the expectations by $760 million. At the same time, the guidance was weaker than expected and resulted in a major drop in Amazon’s share price earlier this month.</p><p>The good news, though, is that Amazon has several growth catalysts, which should make it possible for the company to continue to grow its business at a decent rate. In Q2, Amazon’s North America segment sales were up 9% Y/Y to $90 billion, and given the fact that the U.S. retail sales were up in July, it’s likely that we’ll see further growth in Q3 as well. At the same time, the improving macro environment should also help Amazon deliver a decent performance beyond Q3.</p><p>If we look at the recent CPI report, we’ll see that the headline inflation increased only by 2.9% Y/Y last month, which indicates that a return to normalcy is likely around the corner. The Federal Reserve is already planning to cut interest rates next month, while Goldman Sachs (GS) recently decreased the odds of the American recession, which signals that the U.S. economy remains robust. All of this should help Amazon perform well in North America in the foreseeable future.</p><p>On top of that, Amazon also has a chance to continue to perform well in foreign markets. In Q2, the company’s international segment sales were already up 7% Y/Y to $31.7 billion. Given the fact the GDP of the euro area and the GDP of the countries that are part of the OECD were on the rise in recent quarters, it makes sense to assume that the global economy also remains healthy and should help Amazon grow its international sales in the future as consumer confidence is slowly being restored.</p><p>In addition to all of that, Amazon’s businesses that are not related to eCommerce have everything going for them to create additional shareholder value as well. In Q2, Amazon’s AWS segment sales were up 19% Y/Y to $26.3 billion. Given the fact that the cloud market is expected to grow at a double-digit CAGR, it makes sense to assume that the company’s cloud revenues are likely to increase in Q3 and beyond.</p><p>At the same time, Amazon’s advertising services revenue was up 20% Y/Y to $12.8 billion. Since the digital advertising market is expected to grow at a double-digit rate as well, it would be safe to say that Amazon’s advertising revenues will be on the rise as well.</p><p>Considering all of this, it makes sense to assume that Amazon’s growth story is not over yet. While the guidance for Q3 was below expectations, the company nevertheless is forecasted to grow its sales at a double-digit rate in the upcoming years, which indicates that there are plenty of opportunities for Amazon to improve its performance in the future.</p><h2 id=\"id_3465350541\">Major Macro Risks Still Remain</h2><p>Although Amazon has several macro tailwinds going for it, it nevertheless faces numerous challenges that could undermine its growth story. First of all, even though the stock market has recovered from the selloff that happened earlier this month due to the higher unemployment numbers, there are fears that the Federal Reserve could be too late in changing its policy. There’s a possibility that the central bank held rates high for too long, which could have negative near-term consequences for the economy and undermine Amazon’s growth story in the future.</p><p>In addition to that, Amazon faces tougher competition within the eCommerce market as Chinese marketplaces such as Temu (PDD), Shein, AliExpress (BABA), and others have been actively penetrating North America. At the same time, TikTok (BDNCE) is also aiming to capture a portion of the market share thanks to its TikTok Shop features, which give merchants the ability to sell their goods directly to consumers via the platform.</p><p>To counter the rise of its Chinese counterparts, Amazon is now planning on directly shipping goods from China, which should undermine the advantage that its foreign peers have. However, the potential escalation of the Sino-American trade war and the potential worsening of relationships between the two biggest economies in the world could make it harder for Amazon to properly monetize its China-related initiatives.</p><p>On top of all of that, it also appears that Amazon offers little margin of safety at this stage. Last month before the Q2 earnings results came in, my DCF model showed that Amazon’s fair value was $173.35 per share, which at that time meant that the stock was relatively overvalued. That’s why when the overall market tumbled earlier this month, it was no surprise that the shares depreciated as well.</p><p>Since the new earnings report came out and new numbers were revealed, I decided to update my model, which can be seen below. Considering that Amazon’s revenue in Q2 came in below the consensus and the company itself received dozens of revenue downward revisions recently, I have slightly decreased the revenue growth rate in FY24 in the updated model. This is in-line with the overall consensus for the year right now, but I also did not change the revenue growth rate for FY25 and beyond, since the favorable environment coupled with numerous growth catalysts make it possible for Amazon to continue to scale its business at a double-digit rate.</p><p>The EBIT assumptions are also closely correlated with the overall expectations and are expected to gradually increase thanks to the potential improvement of margins as a result of the utilization of the company’s dominant position in the eCommerce and cloud fields. The CapEx is also expected to significantly increase in the following years, primarily to support the AWS infrastructure and the company’s generative AI projects. During the recent earnings call, Amazon’s management said that the expenditures in the first half of the year were $30.5 billion and are expected to be higher in the second half of the year. This has been reflected in the updated model. The assumptions for all the other main metrics mostly remained the same, and they closely mirror Amazon’s historical performance.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/d2618543c5d5862c4926a8387c258b5f\" tg-width=\"640\" tg-height=\"319\"/></p><p>Amazon&#39;s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)</p><p></p><p>The updated model shows that Amazon’s fair value is $169.33 per share. It’s slightly below the previous calculations, but not that significant.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/541fbc7d34b08689c011aceece286d1c\" tg-width=\"640\" tg-height=\"137\"/></p><p>Amazon&#39;s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)</p><p></p><p>The most important thing to understand here is that the company’s shares offer little margin of safety for investors. While it’s likely that if the macro environment continues to improve and positively affects the broader market, then Amazon’s shares will be able to regain their momentum and appreciate further. However, if we see a potential repeat of the situation that happened at the beginning of this month when the overall market tumbled, then the depreciation of Amazon’s shares could lose significant value as there would be no fundamental reasons for it to trade higher from the current levels.</p><h2 id=\"id_2321124821\">The Bottom Line</h2><p>Amazon remains a decent company that is likely going to continue to grow at a double-digit rate if the macro environment remains stable. However, the rising macro and China-related risks could nevertheless diminish its upside, while the relatively non-existent margin of safety makes its stock a HOLD at best.</p><p>Editor&#39;s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Could Be The Top</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Could Be The Top\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-28 11:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro...</p>\n\n<a href=\"https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","BK4554":"元宇宙及AR概念","LU0052750758.USD":"富兰克林中国基金A Acc","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","BK4565":"NFT概念","AMZN":"亚马逊","BK4548":"巴美列捷福持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","LU0231483743.USD":"abrdn SICAV I - ALL CHINA SUSTAINABLE EQUITY \"A\" (USD) ACC","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","HK0000306685.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) INC","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","BK4526":"热门中概股","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4538":"云计算","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0080751232.USD":"富达环球多元动力基金A","BK4535":"淡马锡持仓","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0605514214.HKD":"FIDELITY CHINA CONSUMER \"A\" (HKD) ACC","HK0000306701.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) INC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0048580855.USD":"富达大中华区A","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","BK4534":"瑞士信贷持仓","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0329678170.USD":"FIDELITY EMERGING ASIA \"A\" (USD) INC","BK4531":"中概回港概念","LU0051755006.USD":"摩根大通中国A (dist)","LU0594300419.USD":"富达中国消费基金A","BK4553":"喜马拉雅资本持仓","BK4532":"文艺复兴科技持仓","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","LU0329678337.USD":"FIDELITY EMERGING ASIA \"A\" (USD)","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD"},"source_url":"https://seekingalpha.com/article/4717237-amazon-this-could-be-the-top","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2462196068","content_text":"Amazon's shares have been depreciating due to market correction and mixed earnings report, but have started to recover near $160 per share.Amazon has growth catalysts across the world, but faces macro risks and competition from Chinese marketplaces.Despite potential for growth, Amazon's stock offers little margin of safety, making it a HOLD at best for investors.HJBCAfter briefly reaching the $200 per share level, Amazon’s (NASDAQ:AMZN) shares have been mostly depreciating since the middle of July, primarily due to the overall market correction and the mixed earnings report that the company released a few weeks ago. While shares have recently started to gradually recover after finding a support level of around $160 per share, they are still far away from reaching the all-time levels anytime soon. Even though the company has several major growth catalysts going for it, the rising macro and China-related risks coupled with the minimal margin of safety make Amazon only a HOLD at this stage.The Growth Story Is Not Over YetLast month before the earnings report for Q2 came in, I published an article about Amazon with a HOLD rating where I noted that even though the company is likely to continue to perform well in the foreseeable future, the rising macro risks could suppress the business’s overall upside. Since that time, Amazon’s shares have slightly depreciated and underperformed the broader market.The poor performance of the company’s shares could be attributed to the overall market selloff that happened a few weeks ago due to the rising recession fears and also due to a mixed earnings report that Amazon released earlier this month. While the company managed to increase its revenues by 10.2% Y/Y to $148 billion in Q2, they were below the expectations by $760 million. At the same time, the guidance was weaker than expected and resulted in a major drop in Amazon’s share price earlier this month.The good news, though, is that Amazon has several growth catalysts, which should make it possible for the company to continue to grow its business at a decent rate. In Q2, Amazon’s North America segment sales were up 9% Y/Y to $90 billion, and given the fact that the U.S. retail sales were up in July, it’s likely that we’ll see further growth in Q3 as well. At the same time, the improving macro environment should also help Amazon deliver a decent performance beyond Q3.If we look at the recent CPI report, we’ll see that the headline inflation increased only by 2.9% Y/Y last month, which indicates that a return to normalcy is likely around the corner. The Federal Reserve is already planning to cut interest rates next month, while Goldman Sachs (GS) recently decreased the odds of the American recession, which signals that the U.S. economy remains robust. All of this should help Amazon perform well in North America in the foreseeable future.On top of that, Amazon also has a chance to continue to perform well in foreign markets. In Q2, the company’s international segment sales were already up 7% Y/Y to $31.7 billion. Given the fact the GDP of the euro area and the GDP of the countries that are part of the OECD were on the rise in recent quarters, it makes sense to assume that the global economy also remains healthy and should help Amazon grow its international sales in the future as consumer confidence is slowly being restored.In addition to all of that, Amazon’s businesses that are not related to eCommerce have everything going for them to create additional shareholder value as well. In Q2, Amazon’s AWS segment sales were up 19% Y/Y to $26.3 billion. Given the fact that the cloud market is expected to grow at a double-digit CAGR, it makes sense to assume that the company’s cloud revenues are likely to increase in Q3 and beyond.At the same time, Amazon’s advertising services revenue was up 20% Y/Y to $12.8 billion. Since the digital advertising market is expected to grow at a double-digit rate as well, it would be safe to say that Amazon’s advertising revenues will be on the rise as well.Considering all of this, it makes sense to assume that Amazon’s growth story is not over yet. While the guidance for Q3 was below expectations, the company nevertheless is forecasted to grow its sales at a double-digit rate in the upcoming years, which indicates that there are plenty of opportunities for Amazon to improve its performance in the future.Major Macro Risks Still RemainAlthough Amazon has several macro tailwinds going for it, it nevertheless faces numerous challenges that could undermine its growth story. First of all, even though the stock market has recovered from the selloff that happened earlier this month due to the higher unemployment numbers, there are fears that the Federal Reserve could be too late in changing its policy. There’s a possibility that the central bank held rates high for too long, which could have negative near-term consequences for the economy and undermine Amazon’s growth story in the future.In addition to that, Amazon faces tougher competition within the eCommerce market as Chinese marketplaces such as Temu (PDD), Shein, AliExpress (BABA), and others have been actively penetrating North America. At the same time, TikTok (BDNCE) is also aiming to capture a portion of the market share thanks to its TikTok Shop features, which give merchants the ability to sell their goods directly to consumers via the platform.To counter the rise of its Chinese counterparts, Amazon is now planning on directly shipping goods from China, which should undermine the advantage that its foreign peers have. However, the potential escalation of the Sino-American trade war and the potential worsening of relationships between the two biggest economies in the world could make it harder for Amazon to properly monetize its China-related initiatives.On top of all of that, it also appears that Amazon offers little margin of safety at this stage. Last month before the Q2 earnings results came in, my DCF model showed that Amazon’s fair value was $173.35 per share, which at that time meant that the stock was relatively overvalued. That’s why when the overall market tumbled earlier this month, it was no surprise that the shares depreciated as well.Since the new earnings report came out and new numbers were revealed, I decided to update my model, which can be seen below. Considering that Amazon’s revenue in Q2 came in below the consensus and the company itself received dozens of revenue downward revisions recently, I have slightly decreased the revenue growth rate in FY24 in the updated model. This is in-line with the overall consensus for the year right now, but I also did not change the revenue growth rate for FY25 and beyond, since the favorable environment coupled with numerous growth catalysts make it possible for Amazon to continue to scale its business at a double-digit rate.The EBIT assumptions are also closely correlated with the overall expectations and are expected to gradually increase thanks to the potential improvement of margins as a result of the utilization of the company’s dominant position in the eCommerce and cloud fields. The CapEx is also expected to significantly increase in the following years, primarily to support the AWS infrastructure and the company’s generative AI projects. During the recent earnings call, Amazon’s management said that the expenditures in the first half of the year were $30.5 billion and are expected to be higher in the second half of the year. This has been reflected in the updated model. The assumptions for all the other main metrics mostly remained the same, and they closely mirror Amazon’s historical performance.Amazon's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)The updated model shows that Amazon’s fair value is $169.33 per share. It’s slightly below the previous calculations, but not that significant.Amazon's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)The most important thing to understand here is that the company’s shares offer little margin of safety for investors. While it’s likely that if the macro environment continues to improve and positively affects the broader market, then Amazon’s shares will be able to regain their momentum and appreciate further. However, if we see a potential repeat of the situation that happened at the beginning of this month when the overall market tumbled, then the depreciation of Amazon’s shares could lose significant value as there would be no fundamental reasons for it to trade higher from the current levels.The Bottom LineAmazon remains a decent company that is likely going to continue to grow at a double-digit rate if the macro environment remains stable. However, the rising macro and China-related risks could nevertheless diminish its upside, while the relatively non-existent margin of safety makes its stock a HOLD at best.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","news_type":1},"isVote":1,"tweetType":1,"viewCount":63,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333028701171864,"gmtCreate":1722333866768,"gmtModify":1722333868878,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333028701171864","repostId":"2455362551","repostType":2,"repost":{"id":"2455362551","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1722306575,"share":"https://ttm.financial/m/news/2455362551?lang=&edition=fundamental","pubTime":"2024-07-30 10:29","market":"us","language":"en","title":"Investors on Alert for Fed Signals of September Rate Cut","url":"https://stock-news.laohu8.com/highlight/detail?id=2455362551","media":"Dow Jones","summary":"The big question going into the Federal Reserve's meeting Wednesday comes down to how strongly officials signal their desire to cut rates.The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conf","content":"<html><head></head><body><p>The big question going into the Federal Reserve&#39;s meeting Wednesday comes down to how strongly officials signal their desire to cut rates.</p><p>The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.</p><p>The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here&#39;s a look at the four most important questions ahead of the decision:</p><p><strong>Where do officials set the bar for a September interest-rate cut?</strong></p><p>Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed&#39;s rate-setting committee.</p><p>Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including:</p><p> -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed&#39;s 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.</p><p>Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell&#39;s press conference. There, he can elaborate on how officials are approaching the question of rate cuts.</p><p>Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. &#34;If the inflation news is OK between now and September, then they can say, OK, now we&#39;re confident that we&#39;re on track, and we&#39;re going to start cutting rates,&#34; said William English, a former senior Fed adviser.</p><p><strong>Why are officials moving closer to cutting rates?</strong></p><p>Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.</p><p>But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.</p><p>&#34;The Fed knows the medicine it&#39;s administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,&#34; said Raghuram Rajan, a former governor of India&#39;s central bank.</p><p>&#34;There will be a temptation to say, &#39;Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,&#39; and even after the Fed cuts, policy may remain restrictive,&#34; said Rajan.</p><p><strong>Why not cut rates now?</strong></p><p>Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.</p><p>Still, top Fed officials have signaled they aren&#39;t yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed&#39;s June meeting, Powell said the first cut will be a &#34;consequential decision&#34; that &#34;you want to get right.&#34;</p><p>Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn&#39;t warranted yet. As a result, a rate reduction on Wednesday &#34;looks panicky, and I think it&#39;s likely to be unhelpful,&#34; said English, a professor at Yale School of Management.</p><p><strong>What happens after the first cut?</strong></p><p>Powell isn&#39;t likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials&#39; private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.</p><p>Since last year, Fed officials&#39; quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.</p><p>Fed officials won&#39;t present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.</p><p>&#34;If they have enough confidence to go in September, then that&#39;s got to make November live as well as December,&#34; said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.</p><p>The near-term outlook faces an awkward complication: November&#39;s two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.</p><p></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investors on Alert for Fed Signals of September Rate Cut</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvestors on Alert for Fed Signals of September Rate Cut\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-30 10:29</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>The big question going into the Federal Reserve&#39;s meeting Wednesday comes down to how strongly officials signal their desire to cut rates.</p><p>The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.</p><p>The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here&#39;s a look at the four most important questions ahead of the decision:</p><p><strong>Where do officials set the bar for a September interest-rate cut?</strong></p><p>Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed&#39;s rate-setting committee.</p><p>Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including:</p><p> -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed&#39;s 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.</p><p>Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell&#39;s press conference. There, he can elaborate on how officials are approaching the question of rate cuts.</p><p>Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. &#34;If the inflation news is OK between now and September, then they can say, OK, now we&#39;re confident that we&#39;re on track, and we&#39;re going to start cutting rates,&#34; said William English, a former senior Fed adviser.</p><p><strong>Why are officials moving closer to cutting rates?</strong></p><p>Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.</p><p>But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.</p><p>&#34;The Fed knows the medicine it&#39;s administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,&#34; said Raghuram Rajan, a former governor of India&#39;s central bank.</p><p>&#34;There will be a temptation to say, &#39;Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,&#39; and even after the Fed cuts, policy may remain restrictive,&#34; said Rajan.</p><p><strong>Why not cut rates now?</strong></p><p>Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.</p><p>Still, top Fed officials have signaled they aren&#39;t yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed&#39;s June meeting, Powell said the first cut will be a &#34;consequential decision&#34; that &#34;you want to get right.&#34;</p><p>Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn&#39;t warranted yet. As a result, a rate reduction on Wednesday &#34;looks panicky, and I think it&#39;s likely to be unhelpful,&#34; said English, a professor at Yale School of Management.</p><p><strong>What happens after the first cut?</strong></p><p>Powell isn&#39;t likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials&#39; private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.</p><p>Since last year, Fed officials&#39; quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.</p><p>Fed officials won&#39;t present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.</p><p>&#34;If they have enough confidence to go in September, then that&#39;s got to make November live as well as December,&#34; said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.</p><p>The near-term outlook faces an awkward complication: November&#39;s two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.</p><p></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite","SQQQ":"纳指三倍做空ETF","QQQ":"纳指100ETF",".SPX":"S&P 500 Index","TQQQ":"纳指三倍做多ETF",".DJI":"道琼斯"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2455362551","content_text":"The big question going into the Federal Reserve's meeting Wednesday comes down to how strongly officials signal their desire to cut rates.The central bank is widely expected to hold its benchmark short-term interest rate steady -- in a range between 5.25% and 5.5%, a two-decade high -- while setting the table to begin a series of reductions at the next meeting in mid-September.The Fed releases its policy statement at 2 p.m. Eastern time on Wednesday. Fed Chair Jerome Powell speaks at a news conference at 2:30 p.m. Here's a look at the four most important questions ahead of the decision:Where do officials set the bar for a September interest-rate cut?Officials are expected to revise their postmeeting statement in ways that hint that a rate cut in September is more likely than not. The policy statement is heavily debated by the 12 voting members of the Fed's rate-setting committee.Seemingly trivial wordsmithing changes will be meaningful in framing the outlook for a September cut, including: -- The first paragraph of the statement, which describes recent inflation and labor-market developments. -- The second paragraph, which describes the balance of risks between bringing inflation back to the Fed's 2% goal and maintaining a strong labor market. -- The third paragraph, which includes key language known as forward guidance that spells out what officials are looking for before they cut rates.Language that acknowledges recent improvement in inflation and a more equal balance of risks, together with any changes to the forward guidance, will set the stage for Powell's press conference. There, he can elaborate on how officials are approaching the question of rate cuts.Some analysts think Powell will open the door wider to a September cut without explicitly committing to any course of action. \"If the inflation news is OK between now and September, then they can say, OK, now we're confident that we're on track, and we're going to start cutting rates,\" said William English, a former senior Fed adviser.Why are officials moving closer to cutting rates?Earlier this year, Fed officials were looking at cutting rates on the basis of better inflation news. Surprisingly strong readings in February and March torpedoed those plans.But more recently, inflation has come in lower than expected. In addition, signs that the economy might be slowing more than anticipated, particularly amid a frozen housing market and weakness among low-income consumers, could make officials more comfortable that higher rates are having their intended effects on economic activity and inflation.\"The Fed knows the medicine it's administering is the right one -- some weaker parts of the economy are slowing down, even though there is still strength in other parts,\" said Raghuram Rajan, a former governor of India's central bank.\"There will be a temptation to say, 'Well, if we really want a soft landing, we should start cutting now because we have been in restrictive mode for some time,' and even after the Fed cuts, policy may remain restrictive,\" said Rajan.Why not cut rates now?Several former Fed officials and private-sector economists have said that all of the arguments justifying a cut in September -- better news on inflation and signs of slower spending and hiring that are raising the risk of unnecessary weakness -- are equally applicable now and that the central bank should cut rates Wednesday.Still, top Fed officials have signaled they aren't yet fully confident that inflation is on a durable trajectory to their 2% target. After the Fed's June meeting, Powell said the first cut will be a \"consequential decision\" that \"you want to get right.\"Putting aside the merits of a July cut, most Fed officials have signaled a rate cut isn't warranted yet. As a result, a rate reduction on Wednesday \"looks panicky, and I think it's likely to be unhelpful,\" said English, a professor at Yale School of Management.What happens after the first cut?Powell isn't likely to get that far ahead of things in his news conference, but these considerations could be an important part of officials' private deliberations this week because once policymakers cut interest rates the first time, they will face more questions over when they will cut again.Since last year, Fed officials' quarterly economic projections have penciled in an interest-rate outlook suggesting that, once they make their first move, they could cut rates by a quarter percentage point roughly once every quarter.Fed officials won't present new projections this week, but they will do so in September, which could allow them to show whether that is still a reasonable expectation. If the labor market weakens more between now and then, it is possible officials could move at consecutive meetings initially. The Fed meets again in November and December.\"If they have enough confidence to go in September, then that's got to make November live as well as December,\" said Richard Clarida, who was Fed vice chair from 2018 to 2022 and is now a senior adviser at Pimco.The near-term outlook faces an awkward complication: November's two-day policy meeting begins the day after the Nov. 5 presidential election. While the Fed has made policy changes around elections in the past, officials try to maintain an apolitical approach to their decisions. That will put a premium on being clear, predictable and deliberate in their public communications.","news_type":1},"isVote":1,"tweetType":1,"viewCount":85,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333028512989336,"gmtCreate":1722333820825,"gmtModify":1722333822743,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333028512989336","repostId":"2455697789","repostType":2,"repost":{"id":"2455697789","pubTimestamp":1722311030,"share":"https://ttm.financial/m/news/2455697789?lang=&edition=fundamental","pubTime":"2024-07-30 11:43","market":"nz","language":"en","title":"Meta Q2 Earnings Preview: Best AI Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=2455697789","media":"seekingalpha","summary":"Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage ad","content":"<html><head></head><body><ul style=\"\"><li><p><a href=\"https://laohu8.com/S/META\">Meta Platforms</a>, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.</p></li><li><p>The Llama 3.1 405B model allows developers to leverage advanced AI capabilities, leading to industry-standard adoption with key partners like Amazon and Nvidia.</p></li><li><p>Despite investor concerns over CapEx, Meta&#39;s open-source strategy is expected to democratize AI access and drive innovation, making them a strong AI stock investment.</p></li><li><p>Their AI strategy allows Meta to benefit from market innovations without having to pay for expensive R&amp;D.</p></li><li><p>I think the stock is set up well going into Q2 earnings Wednesday.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/60ead5ada46ec1bca135133b521f97c5\" tg-width=\"750\" tg-height=\"500\"/></p><p>Anna Moneymaker/Getty Images News</p><p></p><h2 id=\"id_3694910815\">Investment Thesis</h2><p>As the AI revolution approaches its two-year mark (kicked-off with the launch of ChatGPT), I believe the real winners and losers are now starting to stand out. <strong>Meta Platforms, Inc.</strong> (NASDAQ:META), in my opinion, has emerged as a notable leader by betting heavily on their open-source AI models. Their Llama 3.1 model family, unveiled in this month, is touted to lead the industry because of their performance, open-source nature, and cost-efficiency, according to the company. I believe Meta has paved the way for a broader trend where enterprises can benefit from open-source, allowing collaboration to compete against closed, proprietary systems like OpenAI.</p><p>The Llama 3.1 405B model is the first frontier-level open-source AI model (meaning it also beats closed models like OpenAI’s GPT 4o). It allows developers to leverage AI capabilities at a new level in various use cases, including for synthetic data generation and model distillation, which were previously unattainable at this scale in the open-source community.</p><p>Their collaborations with key industry partners like Amazon (AMZN)’s AWS, Nvidia (NVDA), Databricks, and others has facilitated the integration of the model across platforms. It’s a wise ecosystem approach, in my opinion, because it ensures that Llama models become the industry standard. With Llama being the industry standard for those who want to control the weights of their models, this brings exceptional benefits to Meta.</p><p>Heading into earnings on July 31st, I believe this new version of Llama is expected to democratize the public’s access to AI technology, especially for more developers and organizations to benefit from Meta’s advancements. The benefits for Meta themselves will be even greater than the benefits to developers.</p><p>As the company encourages widespread adoption and model customization, the improvements and innovations that feed back into Meta’s own development pipeline. CEO Mark Zuckerberg has a history of open-sourcing software tools to have the marketplace refine them, and for his company to use them. His strategy mirrors the historical success of open-source software like Linux, which became an industry standard due to its modifiability and ecosystem.</p><p>I am still a strong buy on Meta going into earnings. I believe this new strategy actually makes them the best AI stock investors can buy. Zuckerberg is playing a long game and leveraging the marketplace to accelerate innovation. I’m incredibly bullish.</p><h2 id=\"id_812244070\">Why I&#39;m Doing Follow-Up Coverage</h2><p>Since my last update, Meta&#39;s shares have underperformed the market due to growing investor concerns over their substantial capital expenditures (CapEx). Despite reporting a record 1Q 2024 revenue of $36.5 billion in April 2024, a 27% increase year-over-year, shares fell by more than 15% following the announcement of increased spending on AI infrastructure. I think this is incredibly misguided.</p><p>Meta&#39;s aggressive CapEx plans, projected to reach $35-40 billion, aim to enhance their AI capabilities and support the development of advanced models like Llama 3.1.</p><p>After last quarter, Investors became uneasy, fearing that the high costs might not yield immediate returns. The market&#39;s swift reaction reflects skepticism about the long-term payoffs of these investments. I think investors need to actually understand that the way Meta will benefit from these models is not through direct AI monetization like other AI giants are trying to do. They are trying to use the market to get free innovation. Meta is cutting their effective R&amp;D costs for tools they know they need internally, and they know will make them money if they are created and leveraged to make the world&#39;s largest social media company bigger. This is genius.</p><p>Zuckerberg has defended the heightened CapEx, and emphasized that massive investments in AI are crucial for maintaining competitive edge and driving innovation across Meta’s platforms, including Facebook, Instagram, and WhatsApp. He acknowledged the necessity of these expenditures to support AI advancements that could eventually enhance ad targeting and user engagement.</p><p>Zuckerberg’s strategy to enhance Meta’s AI infrastructure involves perfecting every layer of their stack, as Meta itself has reported. This helps ensure that Meta can handle the demands of large-scale model training to keep their AI services highly efficient and market leading. I’m writing this follow-up to show how the company is really one of the best AI plays through this open-source strategy and what it means for investors.</p><h2 id=\"id_1189981013\">What Is Meta&#39;s AI Strategy?</h2><p>Meta&#39;s open-source AI strategy has enabled the Llama 3.1 model series to outperform many closed-source models, according to the company. By expanding the context length to 128K and supporting eight languages, the Llama 3.1 models cater to a broader range of advanced use cases such as long-form text summarization, multilingual conversational agents, and coding assistants. It’s clear that Meta capitalizes on the growing demand for more capable and versatile AI tools.</p><p>Zuckerberg has a history of open-sourcing AI tools, which has accelerated the development and adoption of these technologies. For example, the release of the DINOv2 model, which performs advanced visual tasks, and the open-source animated drawings dataset have provided valuable resources for researchers and developers. As these tools were refined and placed back into the public, so others could leverage them, Meta has been able to use these refined tools (refined by millions of developers with new, cutting-edge perspectives).</p><p>While most businesses are trying to expand their business lines and break into new industries, Zuckerberg already commands this highly profitable ad placement system through Meta’s family of social media platforms. I often referred to as a “money printer,” due to its ability to generate exceptional returns for customers who place ads on the platform and for Meta itself through their targeted advertising.</p><p>Zuckerberg does not need another business line to get into. He is solely focused on making this current business model stronger. With this, he’s using the open-source community to carefully open-source the technology he needs to refine but does not want to pay to refine on his own. He knows what tools he needs to mine better gold (ad dollars) but requires the market to help bring them into existence.</p><p>Vox did a great piece on this last year when Meta released one of their first open-source models. Keep in mind, they have not open-sourced all of their data or algorithms. Meta did not open-source the training data they used for these models. They also have not open sourced the core ad-tech algorithm they use at Meta. This is intentional. They open-source the stuff they need refined, yet keep the tools they use to maintain an edge private. Genius.</p><h2 id=\"id_2663304143\">Earnings Expectations</h2><p>While the market was bearish after the last quarter, I believe Meta’s upcoming earnings expectations reveal low expectations. For the upcoming quarter (earnings come after the bell on Wednesday), the consensus EPS estimate stands at $4.78, reflecting a 60.27% year-over-year growth. Revenue projections for 2Q 2024 are expected to be around $38.28 billion, showing a 19.65% increase. Looking forward, revenue growth for the next few years is projected to maintain a conservative 10-12% year-over-year increase, with some years anticipated to be lower. I think this (in hindsight) will look really conservative.</p><p>While the market has started to revise up earnings expectations after the last quarter CapEx raise, I actually think that&#39;s a good thing. Some analysts are starting to understand what this open-source strategy can do for the company. I think once this becomes more obvious, the market will price it in, creating upward pressure on shares.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/44ee506e4c868599a30dc68f6db50b66\" tg-width=\"1280\" tg-height=\"577\"/></p><p>Meta EPS Revisions (Seeking Alpha)</p><p></p><h2 id=\"id_2817764606\">Valuation</h2><p>The company&#39;s forward PEG ratio stands at 1.16, far below the sector median of 1.42, reflecting an -18.55% discount. I believe this indicates that some investors are skeptical about Meta&#39;s ability to achieve their projected EPS growth rates, despite strong historical performance. Some investors believe that these large CapEx projects will drag performance more than the analyst numbers indicate. I think this means the market hasn’t priced in the AI strategy.</p><p>Despite these reservations, I believe Meta is well-positioned to exceed these growth expectations. The company&#39;s open-source strategy is anticipated by the developer community so they can enhance their technological capabilities. It’s cost-effective and can better accelerate innovation on Meta&#39;s behalf. It’s a win-win.</p><p>If Meta were to be valued at the sector median forward PEG ratio of 1.42, their stock would reflect a more accurate valuation based on their forward growth potential. Specifically, recalibrating Meta&#39;s stock to align with the sector median forward PEG ratio represents an approximate 22.41% increase from current levels. It’s a good upside for a company that, I think, has a best-in-class AI strategy.</p><h2 id=\"id_3392520678\">Risks</h2><p>Meta’s business model is based mainly on ad sales on their platforms. Ad sales are dependent on the economy. I believe the U.S. economy has shown signs of slowing down, with GDP growth decelerating and consumer spending tightening (the earnings report today from McDonald&#39;s also shows this).</p><p>When consumers cut back on spending, companies typically reduce their advertising budgets to conserve cash, which results in a downturn in ad revenue for platforms reliant on advertising, such as Meta, despite their strong positioning and innovative strategies. The company is not immune to these macroeconomic trends, as revenue slumped in 2022 as ad dollars got tighter. The cautious economic environment, coupled with higher interest rates and tighter consumer budgets, may hammer Meta as they meet these economic headwinds.</p><p>The company’s heavy reliance on an advertising-based revenue model also exposes the company to risks. As economic conditions fluctuate, so does consumer spending, which directly impacts advertising budgets. During economic slowdowns, companies often reduce their ad expenditures, which can lead to substantial revenue shortfalls for Meta.</p><p>Meta also continues to face antitrust risks, particularly from the European Union. Earlier this month, the European Commission signaled their intent to issue a substantial fine against Meta for allegedly abusing their market dominance by tying their Facebook Marketplace service to the Facebook platform.</p><p>I think Meta&#39;s open-source strategy actually provides a strong defense against both of these headwinds. Open-source is a good way to show that they foster innovation and transparency, which can counteract claims of market dominance and unfair practices.</p><p>Their ad network also benefits from their open-source AI strategy, as these model innovations help them serve ads far better than other ad networks, meaning they can grab market share even in a hypothetical ad market slowdown.</p><h2 id=\"id_2361789377\">Bottom Line</h2><p>Meta has emerged as a strong leader in AI, driven by their open-source strategy with models like Llama 3.1. While shares have underperformed due to investor concerns over substantial CapEx, these investments are already yielding innovations that won’t translate into dollars directly, but help the company do what they do best. Given the company&#39;s forward PEG ratio is below the sector median, I believe this indicates market skepticism about future EPS growth. This presents an opportunity.</p><p>Given the company&#39;s robust open-source strategy, AI advancements, and potential for exceeding growth expectations, I think Meta&#39;s shares remain a strong buy going into earnings.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meta Q2 Earnings Preview: Best AI Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeta Q2 Earnings Preview: Best AI Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-30 11:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0234572021.USD":"高盛美国核心股票组合Acc","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A","BK4561":"索罗斯持仓","IE0005OL40V9.USD":"JANUS HENDERSON BALANCED \"A6M\" (USD) INC","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4581":"高盛持仓","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","BK4529":"IDC概念","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","IE00B19Z8W00.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH \"A\" INC","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4592":"伊斯兰概念","LU0077335932.USD":"FIDELITY AMERICAN GROWTH \"A\" INC","BK4585":"ETF&股票定投概念","IE00B4JS1V06.HKD":"JANUS HENDERSON BALANCED \"A2\" (HKD) ACC","BK4507":"流媒体概念","IE0004086264.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"A\" (USD) ACC","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","META":"Meta Platforms, Inc.","BK4587":"ChatGPT概念","LU0234570918.USD":"高盛全球核心股票组合Acc Close","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","BK4524":"宅经济概念","LU0072462426.USD":"贝莱德全球配置 A2","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","BK4543":"AI","BK4527":"明星科技股","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","BK4077":"互动媒体与服务","LU0056508442.USD":"贝莱德世界科技基金A2","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0080751232.USD":"富达环球多元动力基金A","BK4588":"碎股","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","BK4141":"半导体产品","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4579":"人工智能","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","BK4503":"景林资产持仓"},"source_url":"https://seekingalpha.com/article/4707737-meta-q2-earnings-preview-best-ai-stock","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455697789","content_text":"Meta Platforms, Inc. has emerged as a leader in AI with their open-source strategy and Llama 3.1 models, challenging closed models like OpenAI.The Llama 3.1 405B model allows developers to leverage advanced AI capabilities, leading to industry-standard adoption with key partners like Amazon and Nvidia.Despite investor concerns over CapEx, Meta's open-source strategy is expected to democratize AI access and drive innovation, making them a strong AI stock investment.Their AI strategy allows Meta to benefit from market innovations without having to pay for expensive R&D.I think the stock is set up well going into Q2 earnings Wednesday.Anna Moneymaker/Getty Images NewsInvestment ThesisAs the AI revolution approaches its two-year mark (kicked-off with the launch of ChatGPT), I believe the real winners and losers are now starting to stand out. Meta Platforms, Inc. (NASDAQ:META), in my opinion, has emerged as a notable leader by betting heavily on their open-source AI models. Their Llama 3.1 model family, unveiled in this month, is touted to lead the industry because of their performance, open-source nature, and cost-efficiency, according to the company. I believe Meta has paved the way for a broader trend where enterprises can benefit from open-source, allowing collaboration to compete against closed, proprietary systems like OpenAI.The Llama 3.1 405B model is the first frontier-level open-source AI model (meaning it also beats closed models like OpenAI’s GPT 4o). It allows developers to leverage AI capabilities at a new level in various use cases, including for synthetic data generation and model distillation, which were previously unattainable at this scale in the open-source community.Their collaborations with key industry partners like Amazon (AMZN)’s AWS, Nvidia (NVDA), Databricks, and others has facilitated the integration of the model across platforms. It’s a wise ecosystem approach, in my opinion, because it ensures that Llama models become the industry standard. With Llama being the industry standard for those who want to control the weights of their models, this brings exceptional benefits to Meta.Heading into earnings on July 31st, I believe this new version of Llama is expected to democratize the public’s access to AI technology, especially for more developers and organizations to benefit from Meta’s advancements. The benefits for Meta themselves will be even greater than the benefits to developers.As the company encourages widespread adoption and model customization, the improvements and innovations that feed back into Meta’s own development pipeline. CEO Mark Zuckerberg has a history of open-sourcing software tools to have the marketplace refine them, and for his company to use them. His strategy mirrors the historical success of open-source software like Linux, which became an industry standard due to its modifiability and ecosystem.I am still a strong buy on Meta going into earnings. I believe this new strategy actually makes them the best AI stock investors can buy. Zuckerberg is playing a long game and leveraging the marketplace to accelerate innovation. I’m incredibly bullish.Why I'm Doing Follow-Up CoverageSince my last update, Meta's shares have underperformed the market due to growing investor concerns over their substantial capital expenditures (CapEx). Despite reporting a record 1Q 2024 revenue of $36.5 billion in April 2024, a 27% increase year-over-year, shares fell by more than 15% following the announcement of increased spending on AI infrastructure. I think this is incredibly misguided.Meta's aggressive CapEx plans, projected to reach $35-40 billion, aim to enhance their AI capabilities and support the development of advanced models like Llama 3.1.After last quarter, Investors became uneasy, fearing that the high costs might not yield immediate returns. The market's swift reaction reflects skepticism about the long-term payoffs of these investments. I think investors need to actually understand that the way Meta will benefit from these models is not through direct AI monetization like other AI giants are trying to do. They are trying to use the market to get free innovation. Meta is cutting their effective R&D costs for tools they know they need internally, and they know will make them money if they are created and leveraged to make the world's largest social media company bigger. This is genius.Zuckerberg has defended the heightened CapEx, and emphasized that massive investments in AI are crucial for maintaining competitive edge and driving innovation across Meta’s platforms, including Facebook, Instagram, and WhatsApp. He acknowledged the necessity of these expenditures to support AI advancements that could eventually enhance ad targeting and user engagement.Zuckerberg’s strategy to enhance Meta’s AI infrastructure involves perfecting every layer of their stack, as Meta itself has reported. This helps ensure that Meta can handle the demands of large-scale model training to keep their AI services highly efficient and market leading. I’m writing this follow-up to show how the company is really one of the best AI plays through this open-source strategy and what it means for investors.What Is Meta's AI Strategy?Meta's open-source AI strategy has enabled the Llama 3.1 model series to outperform many closed-source models, according to the company. By expanding the context length to 128K and supporting eight languages, the Llama 3.1 models cater to a broader range of advanced use cases such as long-form text summarization, multilingual conversational agents, and coding assistants. It’s clear that Meta capitalizes on the growing demand for more capable and versatile AI tools.Zuckerberg has a history of open-sourcing AI tools, which has accelerated the development and adoption of these technologies. For example, the release of the DINOv2 model, which performs advanced visual tasks, and the open-source animated drawings dataset have provided valuable resources for researchers and developers. As these tools were refined and placed back into the public, so others could leverage them, Meta has been able to use these refined tools (refined by millions of developers with new, cutting-edge perspectives).While most businesses are trying to expand their business lines and break into new industries, Zuckerberg already commands this highly profitable ad placement system through Meta’s family of social media platforms. I often referred to as a “money printer,” due to its ability to generate exceptional returns for customers who place ads on the platform and for Meta itself through their targeted advertising.Zuckerberg does not need another business line to get into. He is solely focused on making this current business model stronger. With this, he’s using the open-source community to carefully open-source the technology he needs to refine but does not want to pay to refine on his own. He knows what tools he needs to mine better gold (ad dollars) but requires the market to help bring them into existence.Vox did a great piece on this last year when Meta released one of their first open-source models. Keep in mind, they have not open-sourced all of their data or algorithms. Meta did not open-source the training data they used for these models. They also have not open sourced the core ad-tech algorithm they use at Meta. This is intentional. They open-source the stuff they need refined, yet keep the tools they use to maintain an edge private. Genius.Earnings ExpectationsWhile the market was bearish after the last quarter, I believe Meta’s upcoming earnings expectations reveal low expectations. For the upcoming quarter (earnings come after the bell on Wednesday), the consensus EPS estimate stands at $4.78, reflecting a 60.27% year-over-year growth. Revenue projections for 2Q 2024 are expected to be around $38.28 billion, showing a 19.65% increase. Looking forward, revenue growth for the next few years is projected to maintain a conservative 10-12% year-over-year increase, with some years anticipated to be lower. I think this (in hindsight) will look really conservative.While the market has started to revise up earnings expectations after the last quarter CapEx raise, I actually think that's a good thing. Some analysts are starting to understand what this open-source strategy can do for the company. I think once this becomes more obvious, the market will price it in, creating upward pressure on shares.Meta EPS Revisions (Seeking Alpha)ValuationThe company's forward PEG ratio stands at 1.16, far below the sector median of 1.42, reflecting an -18.55% discount. I believe this indicates that some investors are skeptical about Meta's ability to achieve their projected EPS growth rates, despite strong historical performance. Some investors believe that these large CapEx projects will drag performance more than the analyst numbers indicate. I think this means the market hasn’t priced in the AI strategy.Despite these reservations, I believe Meta is well-positioned to exceed these growth expectations. The company's open-source strategy is anticipated by the developer community so they can enhance their technological capabilities. It’s cost-effective and can better accelerate innovation on Meta's behalf. It’s a win-win.If Meta were to be valued at the sector median forward PEG ratio of 1.42, their stock would reflect a more accurate valuation based on their forward growth potential. Specifically, recalibrating Meta's stock to align with the sector median forward PEG ratio represents an approximate 22.41% increase from current levels. It’s a good upside for a company that, I think, has a best-in-class AI strategy.RisksMeta’s business model is based mainly on ad sales on their platforms. Ad sales are dependent on the economy. I believe the U.S. economy has shown signs of slowing down, with GDP growth decelerating and consumer spending tightening (the earnings report today from McDonald's also shows this).When consumers cut back on spending, companies typically reduce their advertising budgets to conserve cash, which results in a downturn in ad revenue for platforms reliant on advertising, such as Meta, despite their strong positioning and innovative strategies. The company is not immune to these macroeconomic trends, as revenue slumped in 2022 as ad dollars got tighter. The cautious economic environment, coupled with higher interest rates and tighter consumer budgets, may hammer Meta as they meet these economic headwinds.The company’s heavy reliance on an advertising-based revenue model also exposes the company to risks. As economic conditions fluctuate, so does consumer spending, which directly impacts advertising budgets. During economic slowdowns, companies often reduce their ad expenditures, which can lead to substantial revenue shortfalls for Meta.Meta also continues to face antitrust risks, particularly from the European Union. Earlier this month, the European Commission signaled their intent to issue a substantial fine against Meta for allegedly abusing their market dominance by tying their Facebook Marketplace service to the Facebook platform.I think Meta's open-source strategy actually provides a strong defense against both of these headwinds. Open-source is a good way to show that they foster innovation and transparency, which can counteract claims of market dominance and unfair practices.Their ad network also benefits from their open-source AI strategy, as these model innovations help them serve ads far better than other ad networks, meaning they can grab market share even in a hypothetical ad market slowdown.Bottom LineMeta has emerged as a strong leader in AI, driven by their open-source strategy with models like Llama 3.1. While shares have underperformed due to investor concerns over substantial CapEx, these investments are already yielding innovations that won’t translate into dollars directly, but help the company do what they do best. Given the company's forward PEG ratio is below the sector median, I believe this indicates market skepticism about future EPS growth. This presents an opportunity.Given the company's robust open-source strategy, AI advancements, and potential for exceeding growth expectations, I think Meta's shares remain a strong buy going into earnings.","news_type":1},"isVote":1,"tweetType":1,"viewCount":178,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333027582419072,"gmtCreate":1722333452407,"gmtModify":1722333454544,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333027582419072","repostId":"2455578296","repostType":2,"repost":{"id":"2455578296","pubTimestamp":1722241987,"share":"https://ttm.financial/m/news/2455578296?lang=&edition=fundamental","pubTime":"2024-07-29 16:33","market":"us","language":"en","title":"CrowdStrike: Here's The Price I Will Buy After Major Outage","url":"https://stock-news.laohu8.com/highlight/detail?id=2455578296","media":"Seeking Alpha","summary":"I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash else","content":"<html><head></head><body><ul style=\"\"><li><p>CrowdStrike caused major disruptions last week in several industries.</p></li><li><p>Flights, surgeries, and banks were affected, highlighting CrowdStrike&#39;s importance.</p></li><li><p>The drop in the stock price is an opportunity, but patience could be rewarded as fallout may continue.</p></li><li><p>Below, I outline the long-term case and my short-term target price for initiating a large position.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5f4bee6c935e86c8d9891d0e876d9724\" alt=\"baona/iStock via Getty Images\" title=\"baona/iStock via Getty Images\" tg-width=\"750\" tg-height=\"592\"/><span>baona/iStock via Getty Images</span></p><p>Flights were postponed, surgeries canceled, and banks disrupted. In all, 8.5 million Microsoft (MSFT) Windows devices were affected. This was all because of what CrowdStrike (NASDAQ:CRWD) called a “defect in a single content update.” Congress is calling on CEO George Kurtz to testify before a subcommittee, although we don&#39;t know when.</p><p>This was easily the worst week in CrowdStrike&#39;s history.</p><p>The stock dropped off a cliff, going from a record high near $400 to $250 per share, an epic 38% drop. The price-to-sales ratio fell from a nosebleed level to a more modest valuation, as shown below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4192606d75c6421ccc6705e52b638287\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"491\"/><span>Data by YCharts</span></p><p><strong>The question for investors is significant: Is this a terrific opportunity to buy shares or a stock doomed to continue falling?</strong></p><h2 id=\"id_431956589\">Is CrowdStrike&#39;s epic rise over?</h2><p>I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.</p><p>I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash elsewhere when the stock reached what I considered fair value.</p><p>With the Nasdaq bumping against all-time highs, CrowdStrike&#39;s price-to-sales ratio crept near 30. This is high even for a terrific company running on all cylinders. Especially as CrowdStrike exhausted the large corporate market and turned its strategy to small and medium-sized businesses ((SMBs)). SMBs are a fertile market but likely less profitable than Fortune 500 customers.</p><p>There is panic in the air after last week&#39;s disaster. But those panicking out of the stock may be missing something important: If a single ill-advised CrowdStrike software update can wreak such havoc, CrowdStrike must be an extremely important company.</p><h2 id=\"id_3470447983\">Is CrowdStrike going to recover?</h2><p>The same thing that made CrowdStrike attractive before the current problem is what makes it attractive now: Excellent results.</p><p>CrowdStrike is a global leader in the critical market of endpoint security. According to <a href=\"https://laohu8.com/S/IBM\">IBM</a> (IBM), most damaging cyberattacks result from endpoint protection failures. CrowdStrike&#39;s Falcon platform is entirely cloud-based and modular, and revenue is recurring through subscriptions - all positives for CrowdStrike investors.</p><p>Annual recurring revenue (ARR) tripled over the last three years and grew 33% in Q1 FY25, year-over-year (YOY), as depicted below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/0449acb6121246f4dd8c712ac64677c4\" alt=\"Source: CrowdStrike. Chart by the author.\" title=\"Source: CrowdStrike. Chart by the author.\" tg-width=\"640\" tg-height=\"254\"/><span>Source: CrowdStrike. Chart by the author.</span></p><p>Its land-and-expand strategy is working, with 65% of customers using at least five modules, 44% using six or more, and eight-module deals growing 95% YOY in Q1 FY25. When existing customers purchase additional modules, operating leverage (profitability) increases, which shows up in long-term trends.</p><p>On a non-GAAP basis, CrowdStrike reported an operating margin of 22% in Q1 FY, up from 17% the prior year. The non-GAAP results eliminate stock-based compensation and amortization of intangible assets like patents and goodwill.</p><p>The company also achieved GAAP operating income recently, as shown below.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/2ed8a2f1dea934d6d39723cb019d5232\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"491\"/><span>Data by YCharts</span></p><p>More importantly, free cash flow (FCF) continues to flourish, rising 42% in Q1 FY25 on an impressive 35% margin. CrowdStrike reported more than $1 billion FCF and a margin of over 30% over the past twelve months.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/181779ee127474435e79303d37b4c3b6\" alt=\"Data by YCharts\" title=\"Data by YCharts\" tg-width=\"635\" tg-height=\"439\"/><span>Data by YCharts</span></p><p>Because of the prolific cash generation, CrowdStrike amassed a cash hoard of $3.7 billion against $740 million in long-term debt. This allows the company to fund growth and make strategic acquisitions. The company should also consider a share buyback program now that the stock has cratered, although not until the fervor dies down. This will shore up investor confidence and offset the effects of stock-based compensation.</p><h2 id=\"id_2394619571\">Is CrowdStrike stock a buy now?</h2><p>The financial effects of the shutdown will affect CrowdStrike&#39;s results in Q3 FY25 since Q2 FY25, which ends July 31st, was mostly in books when it took place. The company could see fewer deals close now as companies could be reluctant to sign contracts so soon after a major breakdown. Testifying before Congress could also damage CrowdStrike&#39;s reputation; however, I expect both to be short-lived. This was not a breach, and memories are short in the era of the 24-hour news cycle.</p><p>Still, the stock trades near 20 times sales with a $62 billion market cap, which isn&#39;t a significant discount given the short-term risks. When CrowdStrike reports Q2 results, all eyes will be on guidance to determine the extent of the damage.</p><p>While I have nibbled around $250 per share, I will only initiate a significant position if the valuation reaches 16 times sales, a $53 billion market cap, and a share price near $215. Given the company&#39;s focus on achieving $5 billion in ARR by the end of fiscal 2026, this will be an absolute steal.</p><p>Investors should consider the flip side of last week&#39;s failure: CrowdStrike is essential to many systems; few can replace it, and the switching costs are high. For this reason, the massive drop could be a tremendous opportunity for investors - but perhaps not quite yet.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>CrowdStrike: Here's The Price I Will Buy After Major Outage</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCrowdStrike: Here's The Price I Will Buy After Major Outage\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-29 16:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CrowdStrike caused major disruptions last week in several industries.Flights, surgeries, and banks were affected, highlighting CrowdStrike's importance.The drop in the stock price is an opportunity, ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","BK4592":"伊斯兰概念","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","LU1880398471.USD":"AMUNDI FUNDS GLOBAL EQUITY \"A2\" (USD) ACC","BK4534":"瑞士信贷持仓","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE0004091025.USD":"BNY MELLON GLOBAL OPPORTUNITIES \"B\" (USD) ACC","LU1883839398.USD":"AMUNDI FUNDS INCOME OPPORTUNITIES \"A2\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","BK4587":"ChatGPT概念","BK4525":"远程办公概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU2272731782.SGD":"Allianz Global Intelligent Cities AM Dis H2-SGD","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","BK4550":"红杉资本持仓","BK4579":"人工智能","LU2272731600.USD":"Allianz Global Intelligent Cities AM Dis USD","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","LU1992135472.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES \"AT\" (HKD) ACC","IE000W1ABFV2.USD":"PIMCO BALANCED INCOME AND GROWTH \"R\" (USD) INC","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4097":"系统软件","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","BK4581":"高盛持仓","BK4504":"桥水持仓","IE0003U64NQ7.SGD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (SGDHDG) ACC","CRWD":"CrowdStrike Holdings, Inc.","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00BJTD4N35.SGD":"Neuberger Berman US Long Short Equity A1  Acc SGD-H"},"source_url":"https://seekingalpha.com/article/4707520-crowdstrike-heres-the-price-i-will-buy-after-major-outage","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455578296","content_text":"CrowdStrike caused major disruptions last week in several industries.Flights, surgeries, and banks were affected, highlighting CrowdStrike's importance.The drop in the stock price is an opportunity, but patience could be rewarded as fallout may continue.Below, I outline the long-term case and my short-term target price for initiating a large position.baona/iStock via Getty ImagesFlights were postponed, surgeries canceled, and banks disrupted. In all, 8.5 million Microsoft (MSFT) Windows devices were affected. This was all because of what CrowdStrike (NASDAQ:CRWD) called a “defect in a single content update.” Congress is calling on CEO George Kurtz to testify before a subcommittee, although we don't know when.This was easily the worst week in CrowdStrike's history.The stock dropped off a cliff, going from a record high near $400 to $250 per share, an epic 38% drop. The price-to-sales ratio fell from a nosebleed level to a more modest valuation, as shown below.Data by YChartsThe question for investors is significant: Is this a terrific opportunity to buy shares or a stock doomed to continue falling?Is CrowdStrike's epic rise over?I have been bullish on CrowdStrike for years. From mid-2022 through the beginning of 2023, I built a significant position, buying shares as high as $150 and as low as $95. This article lays out my bullish case at that time.I became cautious as the stock and valuation exploded throughout 2023 and 2024. I began to trim as the stock crested $250 and sold the entire position at $300. In retrospect, I should have kept a small position, but selling at the top is difficult, and I deployed the cash elsewhere when the stock reached what I considered fair value.With the Nasdaq bumping against all-time highs, CrowdStrike's price-to-sales ratio crept near 30. This is high even for a terrific company running on all cylinders. Especially as CrowdStrike exhausted the large corporate market and turned its strategy to small and medium-sized businesses ((SMBs)). SMBs are a fertile market but likely less profitable than Fortune 500 customers.There is panic in the air after last week's disaster. But those panicking out of the stock may be missing something important: If a single ill-advised CrowdStrike software update can wreak such havoc, CrowdStrike must be an extremely important company.Is CrowdStrike going to recover?The same thing that made CrowdStrike attractive before the current problem is what makes it attractive now: Excellent results.CrowdStrike is a global leader in the critical market of endpoint security. According to IBM (IBM), most damaging cyberattacks result from endpoint protection failures. CrowdStrike's Falcon platform is entirely cloud-based and modular, and revenue is recurring through subscriptions - all positives for CrowdStrike investors.Annual recurring revenue (ARR) tripled over the last three years and grew 33% in Q1 FY25, year-over-year (YOY), as depicted below.Source: CrowdStrike. Chart by the author.Its land-and-expand strategy is working, with 65% of customers using at least five modules, 44% using six or more, and eight-module deals growing 95% YOY in Q1 FY25. When existing customers purchase additional modules, operating leverage (profitability) increases, which shows up in long-term trends.On a non-GAAP basis, CrowdStrike reported an operating margin of 22% in Q1 FY, up from 17% the prior year. The non-GAAP results eliminate stock-based compensation and amortization of intangible assets like patents and goodwill.The company also achieved GAAP operating income recently, as shown below.Data by YChartsMore importantly, free cash flow (FCF) continues to flourish, rising 42% in Q1 FY25 on an impressive 35% margin. CrowdStrike reported more than $1 billion FCF and a margin of over 30% over the past twelve months.Data by YChartsBecause of the prolific cash generation, CrowdStrike amassed a cash hoard of $3.7 billion against $740 million in long-term debt. This allows the company to fund growth and make strategic acquisitions. The company should also consider a share buyback program now that the stock has cratered, although not until the fervor dies down. This will shore up investor confidence and offset the effects of stock-based compensation.Is CrowdStrike stock a buy now?The financial effects of the shutdown will affect CrowdStrike's results in Q3 FY25 since Q2 FY25, which ends July 31st, was mostly in books when it took place. The company could see fewer deals close now as companies could be reluctant to sign contracts so soon after a major breakdown. Testifying before Congress could also damage CrowdStrike's reputation; however, I expect both to be short-lived. This was not a breach, and memories are short in the era of the 24-hour news cycle.Still, the stock trades near 20 times sales with a $62 billion market cap, which isn't a significant discount given the short-term risks. When CrowdStrike reports Q2 results, all eyes will be on guidance to determine the extent of the damage.While I have nibbled around $250 per share, I will only initiate a significant position if the valuation reaches 16 times sales, a $53 billion market cap, and a share price near $215. Given the company's focus on achieving $5 billion in ARR by the end of fiscal 2026, this will be an absolute steal.Investors should consider the flip side of last week's failure: CrowdStrike is essential to many systems; few can replace it, and the switching costs are high. For this reason, the massive drop could be a tremendous opportunity for investors - but perhaps not quite yet.","news_type":1},"isVote":1,"tweetType":1,"viewCount":114,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333026029539464,"gmtCreate":1722333075243,"gmtModify":1722333077230,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333026029539464","repostId":"2455696357","repostType":2,"repost":{"id":"2455696357","pubTimestamp":1722311234,"share":"https://ttm.financial/m/news/2455696357?lang=&edition=fundamental","pubTime":"2024-07-30 11:47","market":"sh","language":"en","title":"Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated","url":"https://stock-news.laohu8.com/highlight/detail?id=2455696357","media":"seekingalpha","summary":"Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up de","content":"<html><head></head><body><ul style=\"\"><li><p>Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.</p></li><li><p>The market focused on declining vehicle shipments, which may be an indication of pent-up demand as Tesla looks to release its Robotaxi in October and the next-gen Model 3 in 2025.</p></li><li><p>Meanwhile, the energy business doubled y/y in Q3 as sales of Powerwall and Megapack took off, and is contributing generously to the company&#39;s gross profit and overall profitability.</p></li><li><p>Tesla remains modestly valued at the mid-30s adjusted EBITDA multiple, considering it still represents a very low market share of global vehicle sales.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/de56f24fb1f9cb925118398f30446d4c\" tg-width=\"750\" tg-height=\"500\"/></p><p>ollo</p><p></p><p>Q2 earnings season is well underway, and <strong>Tesla, Inc.</strong> (NASDAQ:TSLA) has been one of the biggest disappointments so far. The world&#39;s largest electric vehicle maker remains down double-digits year to date, with shares falling nearly 20% from near-term peaks after posting lackluster Q2 results.</p><p>Investors focused on one thing and one thing only: declining vehicle production and deliveries, and weaker automotive revenue. But in my view, investors who have a longer-term perspective on Tesla have the opportunity to buy this dip at an attractive discount.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/f6999c5d42da6b225d6b1995e47006e2\" tg-width=\"635\" tg-height=\"424\"/></p><p>Data by YCharts</p><p></p><p>I last wrote a bullish note on Tesla in June, before the company&#39;s Q2 results and when the stock was trading at ~$175 per share. Despite the weaker production statistics in Q2 and the slightly higher share price since my last note, I am retaining my <strong>buy</strong> call on this stock. Tesla remains one of my core long-term holdings and a stock that I think still has plenty of runway to go. Investors who are stuck on the company&#39;s latest quarterly results and the volatility of its shipment metrics, in my view, are &#34;missing the point&#34; of this transformational company that is set to not only electrify global driving, but automate it as well.</p><h2 id=\"id_4182039805\">Decline in vehicle deliveries are less meaningful when Tesla is approaching major product releases</h2><p>Let&#39;s start with the biggest elephant in the room: declining vehicle shipments, which is the main reason that Tesla slid sharply after reporting Q2 results.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/54065cf69253531112f8848ba42e2997\" tg-width=\"640\" tg-height=\"274\"/></p><p>Tesla vehicle metrics (Tesla Q2 earnings deck)</p><p></p><p>Total production in Q2 declined -14% y/y to 410.8k units, while total deliveries declined -5% y/y to 444.0k units. Model 3/Y deliveries declined -5% y/y, while the other models (S and X) grew 12% y/y.</p><p>To me, these volatile intra-quarter shipment figures are not indicative of Tesla&#39;s long-term potential, <strong>especially when it&#39;s approaching two major product launches.</strong> The company pushed back its Robotaxi product announcement to October 10th of this year (the fully self-driving version of its vehicle, a wholly integrated car whose software represents a vast improvement over current FSD capabilities which are currently available as a software add-on to existing vehicles). At the same time, it also pulled in the announcement of its next-gen mass-market vehicles sometime in the first half of 2025.</p><p>The fact that it was Model 3 and Y deliveries that fell y/y is especially telling. Unlike smartphones, Tesla is not on a predictable, every-year product cadence. Thus, it makes plenty of sense that <strong>buyers are holding out and waiting for the next model to be released, especially as Elon Musk has strongly hinted that the newer vehicles will be even more affordable than the current generation.</strong></p><p>So, in other words, we shouldn&#39;t penalize Tesla too harshly for weaker near-term results that may be building anticipation for the next wave of vehicles.</p><h2 id=\"id_883917672\">Gross margin continues to recover</h2><p>Another major positive point that was largely overlooked in Tesla&#39;s second-quarter earnings in light of the deliveries decline: the company continued to see stabilization in gross margins.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/8aa8826400393d44ea734a6a905f7ba9\" tg-width=\"640\" tg-height=\"330\"/></p><p>Tesla trended financials (Tesla Q2 earnings deck)</p><p></p><p>As shown in the chart above, Tesla&#39;s GAAP gross margins slid up to 18.0%, <strong>an improvement of 0.6% sequentially (though down -0.2% y/y).</strong> It&#39;s the highest GAAP gross margin in four quarters, which is a major relief after so much negative press over Tesla&#39;s ongoing price cuts.</p><p>We note as well that operating margins <strong>improved 0.8%</strong> sequentially versus Q1, even better than the gross margin improvement. In my view, if we&#39;re looking ahead to revenue growth in FY25 powered by new vehicles and pent-up demand, we may have reached Tesla&#39;s trough in profitability.</p><h2 id=\"id_1949681011\">Energy is driving fantastic growth</h2><p>For much of Tesla&#39;s history as a public company, investors have largely treated the company&#39;s non-automotive segments as non-core, the same way that investors barely care about Alphabet Inc.&#39;s (GOOG) (GOOGL) &#34;Other Bets.&#34;</p><p>But in Q2, Tesla&#39;s energy subsidiary (which consists of its Powerwall at-home energy storage station, and its commercial Megapack) was a much more meaningful contributor. Despite a -5% y/y decline in vehicle shipments and a -7% y/y decline in automotive revenue, <strong>Tesla&#39;s total revenue grew 2% y/y to $25.50 billion, beating Wall Street&#39;s expectations of $24.76 (-1% y/y).</strong></p><p>The contributor behind the beat was the energy segment, which achieved <strong>100% y/y growth in revenue</strong> to $3.0 billion, or 12% of Tesla&#39;s total.</p><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/379d04408134cf0d4c3dc1ed7d784f87\" tg-width=\"640\" tg-height=\"348\"/></p><p>Tesla energy segment highlights (Tesla Q2 earnings deck)</p><p></p><p>The company notes that Megapack and Powerwall have reached a record 9.4 GWh of deployments. Gross profit from the non-automotive segment also reached nearly $1 billion, as shown in the chart above (versus $4.6 billion in total Tesla gross profit dollars), which is a much more meaningful share than revenue. Moreover, the company notes that Energy still has a strong backlog of open orders. Per CFO Vaibhav Taneja&#39;s remarks on the Q2 earnings call:</p><blockquote><p>We previously talked about the potential of the energy business and now feel excited that the foundation that was made over time is bearing the expected results. Energy storage deployments more than doubled with contributions not just from Megapack but also Powerwall, resulting in record revenues and profit for the energy business.</p><p>Energy storage backlog is strong. As discussed before, deployments will fluctuate from period to period with some quarters seeing large increases and others seeing a decline. Recognition of storage gigawatt hours is dependent on a variety of factors, including logistics timing, as we send units from a single factory to markets across the world, customer readiness, and in the case of EPC projects on construction activities. Moving on to the other parts of the business, service and other gross profits also improved sequentially from the improvement in service utilization and growth in our collision repair business.&#34;</p></blockquote><p>Again, I think the massive growth in energy revenue and sharp improvements in profitability were vastly overlooked by investors in light of weaker vehicle shipments - but longer term, this business will continue to drive incredible operating leverage for Tesla.</p><h2 id=\"id_2107811449\">Risks, valuation, and key takeaways</h2><p>Of course, Tesla is not without its risks. The global macroeconomy, particularly in markets like Europe and Asia, continues to send weak signals that are delaying many big-ticket purchases like cars; and moreover, Tesla&#39;s rivals continue to multiply overseas.</p><p>At the same time, however, it&#39;s difficult to argue against Tesla, which is the leader in the EV pack with the greatest installed market share and still tremendous greenfield market opportunity to convert gas vehicle drivers into Tesla owners.</p><p>From a valuation perspective: at current share prices near $220, Tesla trades at a market cap of $688.74 billion. After we net off the $30.72 billion of cash and $7.75 billion of debt on Tesla&#39;s most recent balance sheet, its resulting <strong>enterprise value is $665.77 billion.</strong></p><p>Tesla&#39;s TTM adjusted EBITDA margin has clocked in at 15.5%. If we conservatively assume no margin leverage going forward on FY25 consensus revenue expectations of $116.1 billion (+17% y/y), FY25 adjusted EBITDA would be $18.00 billion - putting Tesla&#39;s valuation at <strong>37.0x EV/FY25 adjusted EBITDA.</strong></p><p>This is certainly no value stock. But, for a company that is set to release major market-leading products this year and next, and when electric vehicles are still less than 20% of the global vehicle market, I&#39;d still say Tesla is at a very reasonable entry point.</p><p>Stay long here and use the dip as a buying opportunity.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla: Buy This Dip, Energy Growth And Margin Recovery Are Vastly Underappreciated\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-30 11:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up ...</p>\n\n<a href=\"https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0251142724.SGD":"Fidelity America A-SGD","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0203202063.USD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"A2X\" (USD) ACC","BK4527":"明星科技股","BK4538":"云计算","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","BK4579":"人工智能","BK4588":"碎股","BK4550":"红杉资本持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4503":"景林资产持仓","BK4574":"无人驾驶","LU0861579265.USD":"联博低波幅策略股票基金A","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4551":"寇图资本持仓","BK4573":"虚拟现实","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","BK4581":"高盛持仓","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","BK4099":"汽车制造商","BK4511":"特斯拉概念","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0056508442.USD":"贝莱德世界科技基金A2","TSLA":"特斯拉","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","BK4507":"流媒体概念","BK4555":"新能源车","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4566":"资本集团","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4587":"ChatGPT概念"},"source_url":"https://seekingalpha.com/article/4707702-tesla-buy-this-dip-energy-growth-and-margin-recovery-are-vastly-underappreciated","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2455696357","content_text":"Shares of Tesla, Inc. have dropped ~20% after reporting Q2 results, creating a well-timed buying opportunity.The market focused on declining vehicle shipments, which may be an indication of pent-up demand as Tesla looks to release its Robotaxi in October and the next-gen Model 3 in 2025.Meanwhile, the energy business doubled y/y in Q3 as sales of Powerwall and Megapack took off, and is contributing generously to the company's gross profit and overall profitability.Tesla remains modestly valued at the mid-30s adjusted EBITDA multiple, considering it still represents a very low market share of global vehicle sales.olloQ2 earnings season is well underway, and Tesla, Inc. (NASDAQ:TSLA) has been one of the biggest disappointments so far. The world's largest electric vehicle maker remains down double-digits year to date, with shares falling nearly 20% from near-term peaks after posting lackluster Q2 results.Investors focused on one thing and one thing only: declining vehicle production and deliveries, and weaker automotive revenue. But in my view, investors who have a longer-term perspective on Tesla have the opportunity to buy this dip at an attractive discount.Data by YChartsI last wrote a bullish note on Tesla in June, before the company's Q2 results and when the stock was trading at ~$175 per share. Despite the weaker production statistics in Q2 and the slightly higher share price since my last note, I am retaining my buy call on this stock. Tesla remains one of my core long-term holdings and a stock that I think still has plenty of runway to go. Investors who are stuck on the company's latest quarterly results and the volatility of its shipment metrics, in my view, are \"missing the point\" of this transformational company that is set to not only electrify global driving, but automate it as well.Decline in vehicle deliveries are less meaningful when Tesla is approaching major product releasesLet's start with the biggest elephant in the room: declining vehicle shipments, which is the main reason that Tesla slid sharply after reporting Q2 results.Tesla vehicle metrics (Tesla Q2 earnings deck)Total production in Q2 declined -14% y/y to 410.8k units, while total deliveries declined -5% y/y to 444.0k units. Model 3/Y deliveries declined -5% y/y, while the other models (S and X) grew 12% y/y.To me, these volatile intra-quarter shipment figures are not indicative of Tesla's long-term potential, especially when it's approaching two major product launches. The company pushed back its Robotaxi product announcement to October 10th of this year (the fully self-driving version of its vehicle, a wholly integrated car whose software represents a vast improvement over current FSD capabilities which are currently available as a software add-on to existing vehicles). At the same time, it also pulled in the announcement of its next-gen mass-market vehicles sometime in the first half of 2025.The fact that it was Model 3 and Y deliveries that fell y/y is especially telling. Unlike smartphones, Tesla is not on a predictable, every-year product cadence. Thus, it makes plenty of sense that buyers are holding out and waiting for the next model to be released, especially as Elon Musk has strongly hinted that the newer vehicles will be even more affordable than the current generation.So, in other words, we shouldn't penalize Tesla too harshly for weaker near-term results that may be building anticipation for the next wave of vehicles.Gross margin continues to recoverAnother major positive point that was largely overlooked in Tesla's second-quarter earnings in light of the deliveries decline: the company continued to see stabilization in gross margins.Tesla trended financials (Tesla Q2 earnings deck)As shown in the chart above, Tesla's GAAP gross margins slid up to 18.0%, an improvement of 0.6% sequentially (though down -0.2% y/y). It's the highest GAAP gross margin in four quarters, which is a major relief after so much negative press over Tesla's ongoing price cuts.We note as well that operating margins improved 0.8% sequentially versus Q1, even better than the gross margin improvement. In my view, if we're looking ahead to revenue growth in FY25 powered by new vehicles and pent-up demand, we may have reached Tesla's trough in profitability.Energy is driving fantastic growthFor much of Tesla's history as a public company, investors have largely treated the company's non-automotive segments as non-core, the same way that investors barely care about Alphabet Inc.'s (GOOG) (GOOGL) \"Other Bets.\"But in Q2, Tesla's energy subsidiary (which consists of its Powerwall at-home energy storage station, and its commercial Megapack) was a much more meaningful contributor. Despite a -5% y/y decline in vehicle shipments and a -7% y/y decline in automotive revenue, Tesla's total revenue grew 2% y/y to $25.50 billion, beating Wall Street's expectations of $24.76 (-1% y/y).The contributor behind the beat was the energy segment, which achieved 100% y/y growth in revenue to $3.0 billion, or 12% of Tesla's total.Tesla energy segment highlights (Tesla Q2 earnings deck)The company notes that Megapack and Powerwall have reached a record 9.4 GWh of deployments. Gross profit from the non-automotive segment also reached nearly $1 billion, as shown in the chart above (versus $4.6 billion in total Tesla gross profit dollars), which is a much more meaningful share than revenue. Moreover, the company notes that Energy still has a strong backlog of open orders. Per CFO Vaibhav Taneja's remarks on the Q2 earnings call:We previously talked about the potential of the energy business and now feel excited that the foundation that was made over time is bearing the expected results. Energy storage deployments more than doubled with contributions not just from Megapack but also Powerwall, resulting in record revenues and profit for the energy business.Energy storage backlog is strong. As discussed before, deployments will fluctuate from period to period with some quarters seeing large increases and others seeing a decline. Recognition of storage gigawatt hours is dependent on a variety of factors, including logistics timing, as we send units from a single factory to markets across the world, customer readiness, and in the case of EPC projects on construction activities. Moving on to the other parts of the business, service and other gross profits also improved sequentially from the improvement in service utilization and growth in our collision repair business.\"Again, I think the massive growth in energy revenue and sharp improvements in profitability were vastly overlooked by investors in light of weaker vehicle shipments - but longer term, this business will continue to drive incredible operating leverage for Tesla.Risks, valuation, and key takeawaysOf course, Tesla is not without its risks. The global macroeconomy, particularly in markets like Europe and Asia, continues to send weak signals that are delaying many big-ticket purchases like cars; and moreover, Tesla's rivals continue to multiply overseas.At the same time, however, it's difficult to argue against Tesla, which is the leader in the EV pack with the greatest installed market share and still tremendous greenfield market opportunity to convert gas vehicle drivers into Tesla owners.From a valuation perspective: at current share prices near $220, Tesla trades at a market cap of $688.74 billion. After we net off the $30.72 billion of cash and $7.75 billion of debt on Tesla's most recent balance sheet, its resulting enterprise value is $665.77 billion.Tesla's TTM adjusted EBITDA margin has clocked in at 15.5%. If we conservatively assume no margin leverage going forward on FY25 consensus revenue expectations of $116.1 billion (+17% y/y), FY25 adjusted EBITDA would be $18.00 billion - putting Tesla's valuation at 37.0x EV/FY25 adjusted EBITDA.This is certainly no value stock. But, for a company that is set to release major market-leading products this year and next, and when electric vehicles are still less than 20% of the global vehicle market, I'd still say Tesla is at a very reasonable entry point.Stay long here and use the dip as a buying opportunity.","news_type":1},"isVote":1,"tweetType":1,"viewCount":144,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":333019958116464,"gmtCreate":1722331850025,"gmtModify":1722331852062,"author":{"id":"3582868904979568","authorId":"3582868904979568","name":"Td1","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3582868904979568","authorIdStr":"3582868904979568"},"themes":[],"htmlText":"Great article, would you like to share it?","listText":"Great article, would you like to share it?","text":"Great article, would you like to share it?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/333019958116464","repostId":"2455751146","repostType":2,"repost":{"id":"2455751146","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1722320389,"share":"https://ttm.financial/m/news/2455751146?lang=&edition=fundamental","pubTime":"2024-07-30 14:19","market":"us","language":"en","title":"Ignore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market","url":"https://stock-news.laohu8.com/highlight/detail?id=2455751146","media":"Dow Jones","summary":"It's been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market's new, more stable posture could set up investors for further gains later this year.Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies' ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.Fortunately, for investors that big stumble hasn","content":"<html><head></head><body><p>It&#39;s been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market&#39;s new, more stable posture could set up investors for further gains later this year.</p><p>Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&amp;P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.</p><p>One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies&#39; ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.</p><p>Fortunately, for investors that big stumble hasn&#39;t led to talk of a bear market or even a correction. Instead, the word on Wall Street&#39;s lips has been &#34;rotation.&#34;</p><p>While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. &#34;A full-fledged bear market is unlikely,&#34; concluded a Bank of America Securities research note Monday. &#34;Rotation is where the action is.&#34;</p><p>The market&#39;s overall resilience shouldn&#39;t necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.</p><p>Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.</p><p>That&#39;s already started to happen. Just this month the Magnificent 7&#39;s share of the S&amp;P 500&#39;s total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that&#39;s much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.</p><p>A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps&#39;s share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.</p><p>How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&amp;P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&amp;P 500 option.</p><p>The lesson may seem obvious but it seems plenty of investors haven&#39;t learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&amp;P 500 funds that collectively hold more than $1.5 trillion. (To be fair it&#39;s likely some, although not all, investors who own S&amp;P 500 funds are institutions or pair them with separate small-cap ETFs.)</p><p>Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&amp;P 500 Equal Weight ETF, which downplays tech&#39;s role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like <a href=\"https://laohu8.com/S/VTWO\">Vanguard Russell 2000 ETF</a> or the <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Core S&amp;P Small-Cap ETF, which screens holdings for profitability.</p><p>Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it&#39;s unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren&#39;t too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ignore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIgnore the Pain. Why the Tech Selloff Is a Sign of a Healthy Market\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-30 14:19</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>It&#39;s been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market&#39;s new, more stable posture could set up investors for further gains later this year.</p><p>Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&amp;P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.</p><p>One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies&#39; ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.</p><p>Fortunately, for investors that big stumble hasn&#39;t led to talk of a bear market or even a correction. Instead, the word on Wall Street&#39;s lips has been &#34;rotation.&#34;</p><p>While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. &#34;A full-fledged bear market is unlikely,&#34; concluded a Bank of America Securities research note Monday. &#34;Rotation is where the action is.&#34;</p><p>The market&#39;s overall resilience shouldn&#39;t necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.</p><p>Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.</p><p>That&#39;s already started to happen. Just this month the Magnificent 7&#39;s share of the S&amp;P 500&#39;s total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that&#39;s much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.</p><p>A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps&#39;s share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.</p><p>How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&amp;P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&amp;P 500 option.</p><p>The lesson may seem obvious but it seems plenty of investors haven&#39;t learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&amp;P 500 funds that collectively hold more than $1.5 trillion. (To be fair it&#39;s likely some, although not all, investors who own S&amp;P 500 funds are institutions or pair them with separate small-cap ETFs.)</p><p>Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&amp;P 500 Equal Weight ETF, which downplays tech&#39;s role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like <a href=\"https://laohu8.com/S/VTWO\">Vanguard Russell 2000 ETF</a> or the <a href=\"https://laohu8.com/S/EEMA\">iShares</a> Core S&amp;P Small-Cap ETF, which screens holdings for profitability.</p><p>Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it&#39;s unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren&#39;t too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"OEX":"标普100",".SPX":"S&P 500 Index","BK4559":"巴菲特持仓","BK4550":"红杉资本持仓","BK4588":"碎股","SSO":"两倍做多标普500ETF","SH":"标普500反向ETF","IVV":"标普500指数ETF","SPXU":"三倍做空标普500ETF","BK4581":"高盛持仓","BK4504":"桥水持仓","SPY":"标普500ETF","VOO":"Vanguard标普500ETF","OEF":"标普100指数ETF-iShares","UPRO":"三倍做多标普500ETF","SDS":"两倍做空标普500ETF","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2455751146","content_text":"It's been a rocky month for the stocks. While no one likes volatility, recent moves have helped right what has been a seriously out-of-whack stock market. The market's new, more stable posture could set up investors for further gains later this year.Stocks seemed to be on a tear in 2024. After leaping nearly 19% to a record on July 16, the S&P 500 hit a wall this month -- including posting its biggest down day in more than a year last week. On Monday, the index was up 0.06%, or 3 points to 5,462.One factor has been wild turns in the U.S. presidential election, which saw one candidate dodge an assassination attempt on July 13, and another drop out just over a week later. But perhaps an even more important are concerns that tech companies' ultimate AI profits might not live up to sky-high stock prices. The so-called Magnificent 7 tech stocks, which have powered the market for the past few years, are down nearly 12% from their mid-July peak.Fortunately, for investors that big stumble hasn't led to talk of a bear market or even a correction. Instead, the word on Wall Street's lips has been \"rotation.\"While tech was taking it on the chin, long out-of-fashion small cap stocks posted a dramatic rally, with the Russell 2000 returning 12% since the start of the month. Underperforming large-cap sectors like real estate, materials and utilities have also done well. \"A full-fledged bear market is unlikely,\" concluded a Bank of America Securities research note Monday. \"Rotation is where the action is.\"The market's overall resilience shouldn't necessarily come as a surprise. Last week the U.S. economy posted surprisingly strong GDP numbers. More than three-fourths of companies to report second-quarter earnings have beat analysts forecasts. And, the inflation picture appears to have stabilized, giving investors increasing confidence the Fed will undertake one or more rate cuts starting in September.Investors should see the rotation as a stroke of luck -- and root for it to continue. It should allow the tech sector -- which had become a dangerously swollen presence in the market -- to right-size itself without leading to the kind of market-wide wipeout that followed the 1990s dot-com bubble.That's already started to happen. Just this month the Magnificent 7's share of the S&P 500's total market capitalization has fallen to 31.6% from 34.4%, according to independent markets researcher Jim Paulsen. While still high, that's much closer to the more sustainable 30% level where it had hovered before surging ahead this year, he notes.A mirror-image of this dynamic appears likely to be at play with small caps. Earlier this year small caps's share of the broad-market Russell 3000 had fallen to a 20-year low 5.2% from a high of nearly 9% in 2006. As of Friday, small caps share had returned to around 6%, according to FactSet.How to position yourself going forward? One simple step is to check your index funds. For the past month, the Vanguard Total Stock Market ETF returned 0.7%, almost a percentage-point better than the Vanguard S&P 500 ETF, which has declined 0.2%. The broader fund has 8% of its assets invested in small-cap stocks, compared to less than 1% for the S&P 500 option.The lesson may seem obvious but it seems plenty of investors haven't learned it. The $409 billion Vanguard Total Stock Market ETF is the fourth-largest exchange-traded fund on the market, according to data company VettaFi. The top three are all S&P 500 funds that collectively hold more than $1.5 trillion. (To be fair it's likely some, although not all, investors who own S&P 500 funds are institutions or pair them with separate small-cap ETFs.)Investors who want to take a bigger, more active bet on the rotation can go with an equal weight ETF, such as the Invesco S&P 500 Equal Weight ETF, which downplays tech's role in the market by weighing every company in its portfolio the same. And, of course, there are small cap funds like Vanguard Russell 2000 ETF or the iShares Core S&P Small-Cap ETF, which screens holdings for profitability.Still, there are risks to chasing returns. With small cap stocks having already jumped 10% in recent weeks, it's unlikely they will repeat their feat, even if the economy continues to hum along. As long as you aren't too tech heavy, and you have at least some exposure to small caps, the best way to readjust your portfolio for the rest of year may simply be to let it readjust itself.","news_type":1},"isVote":1,"tweetType":1,"viewCount":36,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}