Key Topics: Earnings preview of the leading chipmaker – Nvidia. Nvidia has provided an average yearly return of 71% over the last 10 years. What lies ahead? AI-related ETFs (AIQ, SMH, IGPT) are poised to benefit from the AI optimism. Please click here to access the webinar on May 16th at 7.30 pm.

This is an important week for the US as it will announce PPI data on Tuesday and CPI data on Wednesday. Fed Chairman Jerome Powell is also scheduled to speak on Tuesday, and he is expected to stick to his higher-for-longer script. I reckon that any market correction due to a hotter-than-expected inflation surprise may provide investors and traders with an accumulation opportunity, as I think interest rate cuts are still on the way. The bigger narrative here is that default and refinancing risks are increasing for US companies, especially for speculative-grade firms, over the next several years. Speculative-grade companies, also known as non-investment grade or junk-rated companies, will face $2 trillion in debt maturing from 2024 to 2028. The year-over-year growth rates of speculative-grad

Portfolio diversification: Mainland Chinese investors may have been investing in non-RMB denominated assets (e.g., HK-listed shares) to diversify potential RMB depreciation risk.  HKEX Expands Eligible stocks/ETFS Under Stock Connect On April 19, 2024, China announced its plans to expand the list of stocks, REITs, and ETFs included in the Stock Connect program. Currently, there are 24 listed companies participating in the yuan share trading counter program. These 24 listed companies may be added to the southbound Stock Connect. To put it simply, this means that mainland investors will be able to trade these 24 Hong Kong stocks in yuan in the future.  AH Premium: A-shares are now 37% more expensive than their H-share equivalents. China is considering a proposal to exempt in

Source: Tiger PC APP The S&P 500 closed at 5222 on Friday. It is now trading at 0.6% below the all-time high of 5254. We may see a short squeeze once the S&P 500 goes above the all-time high. My best-case scenario, based on fundamental analysis, suggests that we may see a 20.5% upside in the S&P 500, ending the year at 5750, with an EPS of 250 and a PE ratio at 23x. Based on technical analysis, I see that the S&P 500 may potentially take a breather at 5556, and 6118 based on Fibonacci Extension. While a 344-point increase to reach 5556 may seem like a lot, it is only a 6% increase from the current price of 5222. The recent 5.46% correction from 5254 to 4967 may appear too shallow for most investors. However, I would like to argue that the correction may have been completed

Source: TSMC TSM's $Taiwan Semiconductor Manufacturing(TSM)$ share price surged by 3.6% in pre-market trading following the announcement of sales growth. April's revenue saw an impressive 59.6% year-over-year increase, reaching NT$236 billion. This revenue milestone marks the second-highest monthly revenue in the company's history. Industry experts attribute this revenue surge to strong demand for high-performance computing related to artificial intelligence (AI) and robust customer demand for 3nm and 5nm advanced process technology, as reported by CNA. During the 1Q2024 earnings call, TSMC projected that the Q2 midpoint revenue would reach NT$646 billion. With April's revenue already reaching NT$236 billion, this accounts for 36.5% of its Q2 targ

What to Know: Warren Buffett recently sold a large stake in Apple $Apple(AAPL)$ in the first quarter of 2024. His Apple stake decreased from 906 million shares (as of the end of December 2023) to approximately 790 million shares (as of the end of March 2024), representing a decrease of nearly 13% in Apple stake. Despite the reduction, Apple remained Berkshire's largest holding as of the end of March 2024, and Buffett stated that Apple would likely remain Berkshire's largest holding at year-end.   Reason for Selling: Buffett sold Apple to mitigate a potentially higher tax bill, as he believes the US will increase taxes to fund the growing US fiscal deficit.  Conclusion: I don't believe Warren Buffett's decision was solely based on

Source: Alphabet Earnings 1Q2024 Earnings Review Most revenue metrics beat market expectations. Earnings per share: USD1.89 vs. USD1.51 expected Revenue: USD80.54 billion vs. USD78.59 billion expected YouTube advertising revenue: USD8.09 billion vs. USD7.72 billion expected Google Cloud revenue: USD9.57 billion vs. USD9.35 billion expected Traffic acquisition costs (TAC): USD12.95 billion vs USD12.74 billion expected Google's advertising grew by 13.04%, while the advertising segments for Meta and Amazon grew by 26.81% and 24% respectively during the same period. Despite this, Google's advertising growth remains impressive, marking its strongest year-over-year growth since 1Q2022. Google Cloud revenue increased by 28.44% year over year, compared to AWS's 17% and Microsoft Azure

Source: Amazon 1Q2024 Earnings Amazon $Amazon.com(AMZN)$ has exceeded expectations across all key earnings metrics: EPS: 98 cents vs. 83 cents expected Revenue: USD143.3 billion vs. USD142.5 billion expected Advertising: $11.8 billion vs. 11.7 billion expected In the latest quarter, Amazon's Advertising Services segment demonstrated a good revenue growth of 24% year-over-year. In comparison, Google's advertising grew by 13.04% and Meta's advertising by 26.81% during the same period. Amazon Web Services: USD25 billion vs. USD24.5 billion expected AWS experienced a year-over-year growth of 17%, lagging behind Google Cloud's growth of 28.44% and Microsoft Azure's 31% during the same period. However, AWS's operating income yoy growth was impressi

Meta stock is currently trading 15.94% lower than its all-time high. Despite the recent 10% drop on earnings result day, Meta stock is still trading 12.29% higher than its 4Q2023 earnings release on February 1st. This indicates that the recent pessimism hasn't completely erased the gains it generated since the 4Q2023 earnings results. 1Q2024 Earnings Result: Revenue: USD36.46 billion vs. USD36.16 billion expected EPS: USD4.71 vs. USD4.32 expected Source: Reuters Source: Meta's Earnings Slides The 10% drop in stock price on earnings day were due to: Weaker earnings forecast: 2Q2024 total revenue is expected to fall within the range of $36.5 billion to $39 billion, with a midpoint of $37.8 billion. This misses the street estimate of $38.3 billion. Additionally, management anticipates a

Tesla $Tesla Motors(TSLA)$ rose 1.8% on Wednesday but surged 13% in after-hours trading as CEO Elon Musk pledged to accelerate plans for a more affordable EV. Tesla's Wednesday closing price of USD144.61 is still 64.5% lower than its all-time high. 1Q2024 Earnings Review: Revenue declined 9% year-over-year to USD 21.3 billion, falling short of the LSEG estimate of USD 22.15 billion. This marks the first year-over-year revenue drop since the second quarter of 2020. Earnings per share (EPS) declined 47% year-over-year to 45 cents, missing the LSEG estimate of 51 cents. Automotive Gross Margin stood at 16.4% in the first quarter, lower than the expected 17.6%. Operating margin was disappointing at 5.5%, below the anticipated 7%. Tesla cautioned tha

1Q2024: Verizon’s $Verizon(VZ)$ Revenue increased by 0.2% year-over-year in 1Q2024 to USD33 billion, slightly below the estimate of USD 33.24 billion. Adjusted EPS declined by 4.2% year-over-year in 1Q2024 to USD1.15 per share, surpassing the estimate of USD 1.12 per share. Operating expenses rose by 0.5% year-over-year. For 2024, Verizon expects: Total wireless service revenue growth of 2% - 3.5% Adjusted EBITDA growth of 1% -3% Adjusted EPS of $4.50 to $4.70. The revenue and expense growth of the US telecommunications industry suggest that it may have entered a mature business cycle with limited growth catalysts. While investors typically anticipate improved profit margins from companies in mature cycles, Verizon has struggled to achieve g

TSMC's $Taiwan Semiconductor Manufacturing(TSM)$ share price closed 0.55% lower on Wednesday. It might open higher tonight due to earnings beat.  1Q2024 Earnings: Both Net Revenue and Net Income exceeded LSEG consensus estimates by 1.7% and 5.5%, respectively. Net Revenue increased by 16.5% year-over-year to NT$592.64 billion, while Net Income also rose by 16.5% year-over-year to NT$592.64 billion. However, both Net Revenue and Net Income experienced quarter-over-quarter declines of -5.3% and -5.5%, respectively. Both Gross Margin and Operating Margin remained robust at 53.1% and 42% in the quarter. The 3nm process technology contributed 9% of total wafer revenue in 1Q24, with 5nm and 7nm accounting for 37% and 19%, respectively. Advanced

Key Topics: Why the generative AI stock bubble won't burst anytime soon? What to expect from the upcoming earnings reports of Tesla and Apple? Why did Apple and Tesla underperform other Magnificent Seven stocks? Please click here to access the webinar on April 17th at 7.30 pm.

Meituan's $MEITUAN-W(03690)$ stock has risen 45.5% since I last covered it on January 18, 2024. I believe it's a good time to revisit Meituan, particularly given its Friday closing price of HKD102.10, which is approaching the resistance level I mentioned at HKD107.91in my previous article. 4Q2023 Earnings Review: Revenue surged 22% year-over-year to RMB 73 billion in the latest quarter, while operating income reached RMB 1.7 billion compared to a loss of RMB 731 million in the corresponding period last year. Both revenue and operating income surpassed street expectations. However, the operating margin dropped to just 2.39% in 4Q2024. Operating margin was substantially higher in previous

4Q2023 Earnings Review: Tencent’s $TENCENT(00700)$ Revenue increased by 7.07%, and Operating Income rose by 41.96% year-over-year in the latest quarter. The Operating Margin stands at 26.28% for FY2023, the highest in the past six years. VAS revenue shrank by 1.9% year-over-year, while Online Advertising and Fintech & Business Services grew by 20.82% and 15.1% year-over-year respectively in the latest quarter. Moving forward, we expect the weakness in VAS (especially weak gaming revenue) to be offset by margin expansion in Online Advertising and Fintech & Business Services. VAS revenue, accounting for 45% of total revenue, continues its lackluster performance mainly due to lower domestic gaming revenue and decreased Social Networks re