GOOG & AMZN- Best leap year buy on 29 Feb.
Recap.
On 20 Feb 2024, I have examined in fair details how the US PCE report for January 2024 will likely end up.
Titled - PCE Report on 29 Feb : Buy the dip or Run for life? Click here ! to read & repost ok. Tks.
I predicted that the Fed preferred inflation report will rise instead of dipping, just like CPI, Core CPI and PPI reports released on 13 Feb 2024 & 16 Feb 2024, respectively.
Details are in the pudding.
Wall Street forecast.
Guess what, Wall Street seemed to agree with my hypothesis. (see below)
That would be a hair lower than the 2.9% YoY increase registered in December.
However, the MoM increase expected by economists is +0.4%, up from the 0.2% seen in December.
According to $Bank of America(BAC)$ analyst, if the forecast falls true, it could stoke fears that inflation is not moving down quickly enough.
Worse, it could also bring the six-month & three-month annualized inflation numbers back above the Fed’s 2% target.
The coming new PCE reading is important for investors (to know) as all of us are try to predict how quickly the central bank will begin interest cut.
Fed officials socialization.
Below is the latest summary of what the Fed officials have said so far.
Fed vice chair Philip Jefferson - recent inflation data as evidence that the path down to 2% is going to be "bumpy”.
Fed vice chair for supervision Michael Barr -- recent inflation data as evidence that the path down to 2% is going to be "bumpy”. Yes, exactly the same - word for word.
Fed governor Chris Waller - questioned whether January data (CPI, PPI etc..) was a more serious "pothole" and central bank should take its time when it comes to rate cuts.
"…. at least another couple more months of inflation data before I can judge…."
Fed governor Michelle Bowman - the Fed is not at a point yet to begin lowering rates and reducing rates too quickly could require a rate hike later. Worse, she is willing to raise rates if inflation progress stalls or reverses.
Kansas City Fed president Jeff Schmid - “I believe we are not out of the woods yet."
Turbulent US market next few days??
Bargain hunting now?
For readers who have read my 20 Feb 2024 post, still remember my open-ended conclusion - “do we sit out the week of Feb 20 - 23, and bargain hunt on 29 Feb 2024?“
I have for the better part of these 2 weeks (almost), been resisting to pick up “bargains”.
Today might be the day that I have been holding out for.
Will Mr Warren Buffett be scoping up some bargains from today onwards?
Afterall, based on $Berkshire Hathaway(BRK.B)$ latest 13F filling, in Q4 2023 Mr Buffett have hold off on new stock purchases while selling down Apple (AAPL), HP (HPQ) and Paramount Global (PARA).
Will see if I am able to pick up a couple of $Alphabet(GOOGL)$ shares today.
Have been keeping track of it for a while.
With all the headwinds the company is facing of late, it presents (to me) an entry opportunity. (see below)
Another law suit in the making
$96 Billion wipeout
AI image generator backlash
My viewpoints: (mine and mine only).
I cannot comprehend the backlash encountered by Google over its AI image generator.
It really is a case of “damned if you do and damned if you don’t“.
How could it be that a misstep of “trying to do good” could be misconstrue and suffer such repercussions.
Perhaps for the first time in a long time, Google is “desperate” and playing catch up to OpenAI - ChatGPT and its image generator DALL-E 2.
I really thought Google should have learnt its lesson from the earlier rush to debut “Bard”.
Management should NOT rush IT to roll out half-baked products.
In just 5 short trading days, Google has fallen by -5.96% (-$8.70) to $137.43 per share.
It bottomed on Mon, 26 Feb 2024 at $133.26 per share.
It may trough further if PCE data is not ideal.
No guessing required, if Google consolidates further today. Buffet !
$Amazon.com(AMZN)$ is the 2nd stock that I will be looking out for a possible entry into.
I have covered the why-nots and whys in my yesterday post.
Amazon will hit $199 / $223 says Analyst. So, Buy now? Click here ! to read & repost ok. Tks.
Amazon is forging ahead in the Land of Artificial Intelligence like its counterparties as Cloud Services competition heat up.
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Do you think today & maybe next few days are good entry point for Google?
Do you think today & maybe next few days are good entry point for Amazon?
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