He once visited The Virgin Islands... they are now called The Islands
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MTTR buyout for 5.5
The Transaction is Expected to Increase the Development and Deployment of Advanced AI and Digital Twin Technology Across All of CoStar Group’s Product Lines
WASHINGTON --(BUSINESS WIRE)-- CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the property markets announced today that it has reached a definitive agreement to acquire all outstanding shares of Matterport in a cash and stock transaction valued at $5.50 per share reflecting an estimated $1.6 billion of enterprise value. Under the terms and subject to the conditions of the agreement, Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock.
Founded in 2011, Matterport pioneered the development of the first 3D capture solution to deliver dimensionally accurate, photorealistic virtual tours or “digital twins” for any type of property. Matterport’s proprietary and patented technology enables anyone to digitize a property using a variety of camera technologies including cameras found on most smartphones. Matterport also produces a line of innovative 3D capture devices, including the company’s flagship LiDAR-based Pro3 camera which is capable of high-precision indoor and outdoor capture. At the center of the solution is Cortex, a powerful artificial intelligence software engine that automatically generates the 3D digital twin and virtual tour while providing property insights like detailed property dimensions, room layouts, and more.
Matterport's 3D technology is utilized in nearly every sector of real estate, spanning residential, commercial, hospitality, retail, and industrial spaces, among others. Over the years, Matterport has curated what is considered the largest and most precise collection of spatial property data worldwide, with over 12 million spaces captured in 177 countries, and representing more than 38 billion square feet of digital property under management. Contributing to this growth, Matterport has established a global network of several thousand photographers, capture services technicians, and service partners producing hundreds of thousands of new 3D digital twins for properties each month.
CoStar Group operates some of the most effective and widely recognized real estate information solutions and online property marketplaces in the world including Apartments.com , LoopNet , CoStar, and Homes.com , all of which feature Matterport’s 3D virtual tours. CoStar Group was one of the first adopters of Matterport’s technology, and currently has almost 300,000 Matterport digital twins available in the CoStar information product and online property marketplaces. Advertisers on CoStar Group marketplaces clearly recognize the value of Matterport virtual tours. In March 2024 , there were over 7.4 million views of Matterport 3D Tours on Apartments.com , with consumers spending 20% more time viewing an apartment listing when Matterports were available. CoStar Group intends to utilize Matterports in a similar fashion on Homes.com to further enhance the most comprehensive agent, seller and buyer friendly residential portal on the market.
“CoStar Group and Matterport have nearly identical mission statements of digitizing the world’s real estate. I look forward to welcoming Matterport to the CoStar Group family and believe that we will be stronger together, in pursuit of our common mission,” said Andy Florance , Founder and CEO of CoStar Group . “The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property. There is no better way to remotely experience space than via Matterport . CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s spatial technology, including the application of AI and machine learning to extract information from the 3D spatial data library as well as using generative artificial intelligence to imagine and reimagine physical spaces.”
RJ Pittman, Chair and CEO of Matterport said, “We are thrilled to join forces with Costar Group , a long-standing customer and partner with a shared vision for transforming global real estate through technology and digitization. This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence. With CoStar Group's expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide. Importantly, it offers Matterport's stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts.”
The transaction, which is expected to be completed during the year, is subject to the approval of Matterport stockholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. The transaction has been unanimously approved by the Matterport Board of Directors. Directors, Officers and certain other stockholders of Matterport , representing approximately 15% of Matterport’s fully diluted shares, have entered into voting agreements to support the transaction. The transaction is subject to a 10% symmetrical collar based on a CoStar Group share price of $86.02 as the midpoint.
Matterport is headquartered in Sunnyvale, California and has approximately 440 employees. Revenue for the year ending December 31, 2023 , was $158 million , representing growth of 16% on a year over year basis compared to 2022.
CoStar Group plans to provide additional information about the Matterport acquisition during their earnings conference call at 5:00pm ET on April 23, 2024 .
ABOUT COSTAR GROUP, INC.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom . BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France . Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain . CoStar Group’s websites attracted over 160 million unique monthly visitors in September 2023 . Headquartered in Washington, DC , CoStar Group maintains offices throughout the U.S. , Europe , Canada , and Asia . From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
About Matterport
Matterport, Inc. (NASDAQ: MTTR) is the World’s #1 Digital Twin Platform leading the digital transformation of the built world. Our groundbreaking platform turns buildings into data to make every space more valuable and accessible. Millions of buildings in more than 177 countries have been transformed into immersive Matterport digital twins to improve every part of the building lifecycle from planning, construction, and operations to documentation, appraisal and marketing. Learn more at matterport.com and browse a gallery of digital twins.
Forward-Looking Statements
This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. All statements other than statements of historical fact, including statements regarding the proposed acquisition of Matterport , the expected timetable for completing the transaction, future financial and operating results, benefits and synergies of the transaction, future opportunities for the combined businesses and any other statements regarding events or developments that we believe or anticipate will or may occur in the future, may be “forward-looking statements” for purposes of federal and state securities laws. These forward-looking statements, involve a number of risks and uncertainties that could significantly affect the financial or operating results of CoStar, Matterport or the combined company. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. CoStar can give no assurance that its expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. For example, these forward-looking statements could be affected by factors including, without limitation, risks associated with the ability to consummate the proposed transaction and the timing of the closing of the proposed transaction; the ability to successfully integrate operations and employees; the ability to realize anticipated benefits and synergies of the proposed mergers as rapidly or to the extent anticipated by financial analysts or investors; the potential impact of announcement of the proposed mergers or consummation of the proposed transaction on business relationships, including with employees, customers, suppliers and competitors; unfavorable outcomes of any legal proceedings that have been or may be instituted against CoStar or Matterport ; the ability to retain key personnel; costs, fees, expenses and charges related to the proposed transaction;; general adverse economic conditions; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission (the “SEC”) by CoStar and Matterport . Moreover, other risks and uncertainties of which CoStar or Matterport are not currently aware may also affect each of the companies’ forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements made in this Current Report are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by CoStar or Matterport on their respective websites or otherwise. Neither CoStar nor Matterport undertakes any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
? MIDDLE EAST CRYPTO MARKET SURGES, DAILY TRADERS UP 166% IN YEAR
Chipotle price target raised to $3,300 from $3,200 at Raymond James
Raymond James analyst Brian Vaccaro raised the firm's price target on Chipotle (CMG) to $3,300 from $3,200 and keeps an Outperform rating on the shares. The firm maintains a selective stance towards its restaurant coverage universe as industry sales have underwhelmed in recent months, causing Raymond James to increasingly favor stocks it view as having "idiosyncratic factors trading at attractive valuations," such as Brinker (EAT), Shake Shack (SHAK), First Watch (FWRG) and Bloomin' Brands (BLMN), the analyst tells investors in a group earnings preview note.
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Spotify price target raised to $250 from $165 at Loop Capital
Loop Capital raised the firm's price target on Spotify to $250 from $165 and keeps a Hold rating on the shares. The firm is incorporating the recently announced price increase in certain markets and the planned increase in the U.S. - the second in a year - into its estimates, the analyst tells investors in a research note. Spotify's foray into audiobooks, which began domestically in September, also appears "quite successful", Loop Capital added, noting however that its neutral stance reflects the stock's valuation.
Block pullback creates 'particularly attractive opportunity,' says BofA
BofA analyst Jason Kupferberg notes that Block shares have underperformed the S&P 500 by about 1,200 basis points year-to-date, which creates a "particularly attractive opportunity" as the firm thinks that in-line Q1 gross profit with 2024 guidance reiterated, coupled with some adjusted EBITDA upside flowed through to full year, would be a positive catalyst for the stock. The firm, which expect in-line or better Q1 results and believes Q2 estimates "seem reasonable," has a Buy rating and $93 price target on Block shares.
S&P 500 TO SEE 4700 IF YIELDS STAY HIGH, WARNS MORGAN STANLEY
Western Digital price target raised to $80 from $70 at Barclays
Barclays analyst Tom O'Malley raised the firm's price target on Western Digital (WDC) to $80 from $70 and keeps an Overweight rating on the shares. The analyst highlights "significant" nearline share gains for Western Digital in Q4 and thinks this continues until there is more material HAMR production from Seagate (STX) The longer the delay, the more favorable the technology positioning for Western Digital, the analyst tells investors in a research note.
1. Talks between Salesforce (CRM) and data-management software firm Informatica (INFA) have fizzled after the companies couldn't agree on terms, according to people familiar with the matter, The Wall Street Journal's Lauren Thomas, Dana Cimilluca and Laura Cooper report. 2. Volkswagen (VWAGY) workers in Chattanooga, Tennessee, have voted to join the United Automobile Workers, the union announced last night. The union received 2,2628 votes or 73% of the total. "Volkswagen workers in Chattanooga are the first Southern autoworkers outside of the Big Three to win their union." 3. The promise of AI has already driven a massive market rally. The irony is that Apple (AAPL), the company with more context about our lives than any other, has been left behind, Alex Eule writes in this week's edition of Barron's. Unlike Big Tech rivals Meta (META) and Alphabet (GOOGL), or the start-up OpenAI, it has yet to create its own large-language model. The switch to AI, to be sure, is more complex than making a larger-screen phone. But Apple's dominance hasn't changed. And that puts it at the center of any shift - real or artificial, the author says. 4. A24's "Civil War" stayed at number one in its second outing with $11M for a domestic cume of $45M. The dystopian action movie sports a B- CinemaScore, with the audience skewing heavily male - 73%. 5. Air Products and Chemicals (APD), General Motors (GM), Whirlpool (WHR), Mattel (MAT), Seagate Technologies (STX), Ameriprise Financial (AMP), Sherwin-Williams (SHW), Matador Resources (MTDR), and Steel Dynamics (STLD) saw positive mentions in this week's edition of Barron's.
Alcoa upgraded to Equal Weight from Underweight at Morgan Stanley
Morgan Stanley upgraded Alcoa to Equal Weight from Underweight with a price target of $36.50, up from $28.50. The analyst now sees a more balanced risk/reward for Alcoa shares given the company's continued progress on cost saving measures, reduced uncertainty on the path to resolving bauxite mining issues in Western Australia, and potentially more Inflation Reduction Act benefits to come. The operational concerns that persisted throughout 2023 have largely been de-risked, the analyst tells investors in a research note.
Boeing price target lowered to $190 from $235 at Barclays
Barclays analyst David Strauss lowered the firm's price target on Boeing to $190 from $235 and keeps an Equal Weight rating on the shares. The company reported 13 total deliveries in Q1, four storage and nine off line, the analyst tells investors in a research note.
Alphabet price target raised to $175 from $165 at KeyBanc
KeyBanc raised the firm's price target on Alphabet to $175 from $165 and keeps an Overweight rating on the shares. The firm says it enters Q1 earnings with some caution as it does not see much thesis changing on prints and sees an upward bias to capex. On the margin, Alphabet has more near-term catalysts forming from multiple events; opex discipline; Waymo expansion; a potential dividend; and a new CFO.
Gooooooooooooooood mrning
have a great evening!!!!!!!!!!!!!!!!!!!!
Morgan Stanley sees room for Alibaba top-line estimates to rise
After attending the virtual launch of Alimama's new site-wide, AI-enabled, and ROI-based ad tool, Morgan Stanley thinks the new tool will improve merchants' marketing efficiency. The analyst, who sees upside risk to Alibaba's take rate and room for top-line estimates to rise, has an Equal Weight rating and $85 price target on Alibaba shares.
hmmmmmmmmmmm
PANTHEON: “.. the danger of a substantial downside surprise to growth.. is growing. .. Auto sales are now falling outright, .. momentum has faded in the airline passenger numbers, .. and in hotel occupancy, rate increases slowing sharply.” 🇺🇸 @PantheonMacro pic.twitter.com/XHD5pYJf2S
— Carl Quintanilla (@carlquintanilla) April 16, 2024
Simply looking at top and bottom line results versus consensus expectations, 16 of 17 companies that have reported have beaten EPS estimates, while 13 of 16 have beaten sales estimates. Not a bad start to earnings season... pic.twitter.com/fjhIUWfcvB
— Bespoke (@bespokeinvest) April 16, 2024
Unity Software call volume above normal and directionally bullish
Bullish option flow detected in Unity Software with 5,057 calls trading, 1.9x expected, and implied vol increasing over 2 points to 78.87%. Apr-24 30 calls and 5/3 weekly 30 calls are the most active options, with total volume in those strikes near 2,300 contracts. The Put/Call Ratio is 0.38. Earnings are expected on May 9th
Unity Software call volume above normal and directionally bullish
Bullish option flow detected in Unity Software with 5,057 calls trading, 1.9x expected, and implied vol increasing over 2 points to 78.87%. Apr-24 30 calls and 5/3 weekly 30 calls are the most active options, with total volume in those strikes near 2,300 contracts. The Put/Call Ratio is 0.38. Earnings are expected on May 9th
U.S. industrial production rose 0.4% in March
U.S. industrial production rose 0.4% in March after increasing 0.4% (was 0.1%) in February from -0.8% (was -0.5%) in January. Manufacturing production climbed 0.5% after bounding 1.3% (was 0.8%) in February. Vehicles and parts production surged 3.1% following the 3.4% (was 1.8%) prior pop. Excluding vehicles/parts, manufacturing edged up 0.3% from 1.0% (was 0.8%). Machinery manufacturing dropped -0.4% after the prior 2.2% (was 1.7%) jump. Computer, electronics manufacturing was up 0.1% after falling -0.2% (was 0.7%) previously. Utilities production rebounded 2.0% from -7.6% (was -7.5%) which erased the 7.6% (was 7.4%) January pop. Natural gas and electric production each rose 2.3% and 2.0%, respectively. Mining slid -1.4% from 3.0% (was 2.2%). Capacity utilization rose to 78.4% from 78.2% (was 78.3%).
Unusually active option classes on open April 16th
Unusual total active option classes on open include: Live Nation (LYV), KKR (KKR), iShares Silver Trust (SLV), UnitedHealth (UNH), Morgan Stanley (MS), Barrick Gold (GOLD), Raytheon Technologies (RTX), Bank of America (BAC), First Majestic Silver (AG), and TeraWulf (WULF).
Barnes & Noble Education to receive $95M of new capital
Barnes & Noble Education (BNED) announced that it has entered into a definitive agreement with Immersion Corporation (IMMR) and certain of the company's existing shareholders and strategic partners, on the terms of new equity and refinancing transactions that will strengthen BNED's long-term financial position. Upon close, which is expected in June 2024: BNED will receive gross proceeds of $95M of new equity capital through a $50M new equity investment led by Immersion and a $45M fully backstopped equity rights offering; the transactions are expected to infuse approximately $75M of net cash proceeds after transaction costs. The company's existing second lien lenders, affiliates of Fanatics, Lids, and VitalSource Technologies, will convert approximately $34M of outstanding principal and any accrued and unpaid interest into BNED common stock; and the company has received commitments to refinance its existing asset backed loan facility, pursuant to an agreement with its first lien holders, providing the company with access to a $325M facility maturing in 2028. The refinanced ABL Facility will meaningfully enhance BNED's financial flexibility and reduce its annual interest expense. Through the Rights Offering, BNED plans to issue up to 900,000,000 shares of its Common Stock at a cash subscription price of 5c per share. In the Rights Offering, BNED will distribute to each holder of its Common Stock on the record date one non-transferable Right, for every share of Common Stock owned by such holder on the record date, and each Subscription Right will entitle the holder to purchase the number of shares of Common Stock determined by dividing 900,000,000 by the total number of shares of Common Stock outstanding on the record date. Each holder that fully exercises their Subscription Rights will be entitled to Over-Subscription Rights to subscribe for additional shares of Common Stock that remain unsubscribed as a result of any unexercised Subscription Rights, which allows such holder to subscribe for additional shares of Common Stock up to the number of shares purchased under such holder's basic Subscription Right at 5c per share. Pursuant to the terms and conditions of the Purchase Agreement, if any Subscription Rights rem
doqwn
DoorDash price target raised to $155 from $140 at Deutsche Bank
Deutsche Bank raised the firm's price target on DoorDash (DASH) to $155 from $140 and keeps a Buy rating on the shares ahead of the Q1 report. Data checks suggest upside to Q1 order value numbers and resilient growth into Q2, suggesting a guidance beat, the anlayst tells investors in a research note. The firm says conservative incremental margin assumptions should drive a Q1 adjusted EBITDA beat and Q2 guidance that comes in ahead of Street estimates. Deutsche believes DoorDash exited the Q1 with its highs U.S. share versus Uber (UBER) in over two years. The company "has firmly entered a bucket of the quality growth compounders stock bucket," says the firm.
Auna initiated with a Buy at Citi
Citi initiated coverage of Auna with a Buy rating and $14 price target. The analyst sees the company as well positioned to benefit from the secular growth drivers of low private penetration, subpar beds' density, and the aging population throughout Spanish-speaking Latin America. The firm says Auna is the leading healthcare company providing integrated healthcare services in Spanish-speaking Latin America. It believes consistency in the execution of its business plan should allow the stock to re-rate over time.
Military might
The phrase "the best defense is a good offense" is alive and well as countries continue to boost military spending to record levels. Ahead of the pack is the U.S., which has allocated $825B in defense expenditures for FY 2024. That's an amount equivalent to the military expenses of the next 10 countries combined, and if factoring in non-discretionary spending on defense, such as veterans benefits, that number would already be well north of $1T on an annual basis.
Snapshot: Taking notice of the spiraling conflicts taking place across the globe, many Western countries have been warning that "the era of the peace dividend is over." France, which has been leading the defense spending charge across Europe under Emmanuel Macron, is raising military expenditures by more than one-third in the coming years. Another boost for NATO has come from founding member Norway, which just presented plans to double the size of its defense budget, while the U.S. Congress is debating the best path forward for a vote on aid to Ukraine, Israel and Taiwan following Iran's attack over the weekend.
The call for increases in defense spending comes at a time when the West is struggling with diminished military recruitment, as well as pressure from giant debt loads and higher interest rates. Some have looked to defense stocks as a flight-to-arms trade, but returns there haven't always been exemplary, and only 4.4% of WSB subscribers see the sector as an effective hedging mechanism. In fact, defense giants like Raytheon (RTX) and Lockheed Martin (LMT) are trading at roughly the same levels seen before the COVID pandemic in March 2020 despite huge new contracts like the recently announced $17B ICBM interceptor program.
What to watch: Existing backlogs and production capacity don't carry over to immediate new order revenues, which may be reflected in share prices. It also takes a long time for Western militaries to procure advanced weapons, while contractors have to ensure their margins, especially for hefty projects that may be subject to political or strategic reviews in the future. It's also important to note that some defense stocks are looked at more for their dividends, though there have been many share price winners in the sector. Check out the top quant-ranked aerospace and defense stocks on Seeking Alpha.
Antitrust binge
Shares of Live Nation (LYV) are under pressure amid reports that the DOJ is preparing to file an antitrust lawsuit against the concert promoter and its Ticketmaster unit as soon as next month. The stock is off nearly 8% in premarket trading, falling closer to the $90-level. Regulators will likely allege that Live Nation used its dominance to undermine competition for ticketing live events, although the specific charges aren't known. A DOJ decree forbidding Live Nation from threatening venues with loss of access to tours was extended to 2025 on account of repeated violations. (13 comments)
Semiconductor seriousness
Soon after Samsung (OTCPK:SSNLF) was awarded up to $6.4B in grants to boost its U.S. chip production, Commerce Secretary Gina Raimondo said she expects all the $39B in CHIPS Act grant money to be allocated by the end of the year. "We're on a roll," she said on the sidelines of the event announcing Samsung's grant. "We've done three of these in the past month. We'll be doing more in the coming weeks." The awards so far have focused on advanced chips, with the largest grants going to Intel (INTC) and Taiwan Semiconductor Manufacturing (TSM). The remaining grants will focus on memory chips and investments in suppliers, wafers, and chemicals. (2 comments)
Conversion conundrum
Less than a year after its launch, Peloton (PTON) has quietly pulled the plug on the unlimited free-membership option. The fitness app tier was introduced to draw customers who didn't want to spend too much on Peloton equipment, with the expectation that they would eventually switch to paid memberships to access more classes, but it looks like that never materialized. PTON shares slid 7.3% on Monday following the news, and have declined 46% YTD, wiping nearly $1B off the company's market cap. SA analyst Ahmed Abdelazim is bearish on Peloton, as it appears to have higher odds of going bankrupt.
Today's Markets
In Asia, Japan -1.9%. Hong Kong -2.1%. China -1.7%. India -0.6%.
In Europe, at midday, London -1.4%. Paris -1.2%. Frankfurt -1.2%.
Futures at 7:00, Dow +0.3%. S&P -0.1%. Nasdaq -0.1%. Crude -0.5% to $84.99. Gold +0.1% to $2,386.20. Bitcoin -6.2% to $62,541.
Ten-year Treasury Yield +4 bps to 4.65%.
Today's Economic Calendar
8:30 Housing Starts and Permits
9:00 Fed’s Jefferson Speech
9:15 Industrial Production
12:30 PM Fed's Williams Speech
1:00 PM Fed's Barkin Speech
1:15 PM Jerome Powell Speech
Companies reporting earnings today »
What else is happening...
WSB survey results: Half aren't hedging, but see what others are doing.
Another record: Gold extends safe-haven rise despite a strong dollar.
Goldman Sachs (GS) earnings beat as global banking, markets revive.
Reddit (RDDT) slips despite Street coverage weighed to the upside.
Microsoft invests $1.5B in UAE AI firm G42; Brad Smith to join board.
Tim Cook in Hanoi: Apple vows more spending on Vietnam suppliers.
China's GDP growth tops estimates, helped by support measures.
Strong results from UnitedHealth (UNH) despite cyberattack impact.
Meta (META) to temporarily shutter Twitter rival Threads in Turkey.
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Largest decreases in stock option open interest $TSLA $HOOD $CCJ $NOVA $CCL $MU $NVDA $KO $RUN $PFE $RIG
Bank of America reports Q1 adjusted EPS 83c, consensus 77c
Reports Q1 revenue $25.82B, consensus $25.46B. Reports Q1 CET1 capital ratio 11.8%. Reports Q1 tangible book value per share $24.79. Reports Q1 net charge-offs .58%. The bank said, "We reported a strong quarter as our businesses performed well, adding clients and deepening relationships. We reached 36.9 million consumer checking accounts, with 21 consecutive quarters of net checking account growth. Our Wealth Management team generated record revenue, with record client balances, and investment banking rebounded. Bank of America's sales and trading businesses continued their strong 2023 momentum this quarter, reporting the best first quarter in over a decade. Continued strong earnings and strong expense management both position our company to continue to drive our market leading positions across our businesses."
gooooooooooooood morning!!!!!!!!!!
Arm initiated with an Outperform at Evercore ISI
Evercore ISI initiated coverage of Arm with an Outperform rating and $156 price target. The firm views Arm as a play on three "tectonic" shifts in computing, namely in the cellphone, as AI workloads demand more processing power; in the datacenter, as the center of gravity of CPUs shifts from x86 to Arm; and in internet-of-things, as a 10x unit growth play.
Texas Instruments initiated with an Outperform at Evercore ISI
Evercore ISI analyst Mark Lipacis initiated coverage of Texas Instruments with an Outperform rating and $213 price target. The firm calls TI a "Tectonic Shift play" as a key supplier into the emerging IoT market, which it expects to grow to tens of billions of units. The firm, which expects the company's operating margins to expand 1,000 basis points over the next 10 years, believes the stock's price-to-earnings ratio with expand as TI exits its capex cycle in 2027 and its free cash flow per share rises.
ADI
Analog Devices initiated with an Outperform at Evercore ISI
Evercore ISI initiated coverage of Analog Devices with an Outperform rating and $254 price target. The company is a "Tectonic Shift play" given its position as a key supplier into the emerging internet-of-things market which the firm expects to grow to 10s of billions of units, the analyst tells investors in a research note. Evercore adds that it expects the company's operating margins to expand 1,000bps over the next 10 years.
GlobalFoundries initiated with an Outperform at Evercore ISI
Evercore ISI analyst Mark Lipacis initiated coverage of GlobalFoundries with an Outperform rating and $71 price target. The firm views GlobalFoundries as a "Tectonic Shift play," calling it the "key local foundry supplier into the emerging IoT market," which the firm expects to grow to tens of billions of units. The firm believes that the analog/MCU complex in general, and GlobalFoundries specifically, benefit from two secular trends: a shift to an IoT/Parallel processing era and consolidation driving higher margins, free cash flow and capital return.
Lockheed selected for NGI awarded over Northrop Grumman, says Jefferies
Jefferies analyst Sheila Kahyaoglu reiterated a Hold rating and $485 price target on Lockheed Martin (LMT) after Reuters reported that the U.S. Missile Defense Agency awarded the company the $17B Next Generation Interceptor contract. The firm noted that, in March 2021, Lockheed and Northrop Grumman (NOC) were downselected for the NGI program, receiving a $3.7B and $3.9B contract, respectively. The news also comes after MDA head Lieutenant General heath Collins testified last week at a House Armed Services Committee hearing that there was enough available information with the existing bids to downselect in April, the analyst tells investors in a research note.
off the lows