He once visited The Virgin Islands... they are now called The Islands
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Roku price target lowered to $80 from $110 at Susquehanna
Susquehanna analyst Shyam Patil lowered the firm's price target on Roku to $80 from $110 and keeps a Positive rating on the shares. The firm said they reported a solid 1Q with revenue and profitability above expectations. While 2Q headline numbers were generally fine, tougher comps and 606 accounting are expected to impact platform revenue growth in 2Q.
SoFi Technologies sees Q2 revenue $555M-$565M, consensus $580.73M
The company said, "For the second quarter of 2024, management expects to deliver adjusted net revenues of $555 to $565 million, adjusted EBITDA of $115 to $125 million and Net Income of $5 to $10 million."
SoFi Technologies reports Q1 EPS 2c, consensus 1c
Reports Q1 revenue $645M, consensus $556M. Reports Q1 tangible book value per share $3.92. Anthony Noto, CEO of SoFi Technologies, Inc. commented: "Our first quarter was an exceptionally strong start to 2024, demonstrating significant momentum as we responsibly grow revenue and diversify toward our Financial Services and Tech Platform segments, sustain profitability, reinforce our balance sheet, and grow our member base. We delivered adjusted net revenue of $581 million, representing 26% year-over-year growth. Financial Services and Tech Platform segment revenue combined grew 54% and represented a record 42% of consolidated adjusted net revenue, offsetting flat Lending segment revenue given a more conservative approach in light of macroeconomic uncertainty."
Tractor Supply price target raised to $300 from $265 at Piper Sandler
Piper Sandler raised the firm's price target on Tractor Supply to $300 from $265 and keeps an Overweight rating on the shares following Q1 results, which saw EPS upside with inline sales/comp. With over 10% EPS growth in Q1, and healthy potential for upside to 2024 guidance, Tractor Supply has one of the more attractive 2024 outlooks in the firm's coverage universe.
TESLA SHARES GAIN 8.6% ON BAIDU FULL-SELF DRIVING PARTNERSHIP
Elon Musk visits China as Tesla seeks self-driving technology rollout
goooooooooood mornong
While Meta's (META) heavy AI spending and light revenue outlook alarmed investors, huge investments in the new technology from other Big Tech players Alphabet (GOOG, GOOGL) and Microsoft (MSFT) are paying off. Both companies reported earnings that topped expectations across the board, cementing their dominance in the AI field and convincing investors that their huge AI bets are reaping more immediate returns.
Search strength: Alphabet surged by double digits AH on Thursday - GOOG +11.4%, GOOGL +11.6% - after its Q1 results easily cleared analyst expectations, with strong performance particularly at YouTube. The tech giant also rewarded investors with its first ever dividend and announced a $70B stock buyback. "Our results reflect strong performance from Search, YouTube and Cloud," said CEO Sundar Pichai. "We are well under way with our Gemini era and there’s great momentum across the company." He also noted that Google's AI offerings boosted core search results in the quarter.
AI cloud boost: Microsoft (MSFT) rose 4.4% AH on Thursday, as the tech giant's Q3 results beat expectations, helped by AI adoption across its cloud services, and its forecast largely matched Street estimates. "Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," said CEO Satya Nadella. To note, the company's AI-driven spending in the quarter was about $1B more than what analysts expected, but that didn't deter investors as it appears warranted given huge customer demand.
SA commentary: Investing Group Leader Ahan Vashi said while Alphabet is spending big on AI, it is on track to generate around $80B free cash flow in 2024. However, he is moving to the sidelines as its "valuation is now too rich, and long-term risk/reward warrants a rating downgrade." SA analyst Livy Investment Research noted that Microsoft has a "lofty" valuation premium relative to its Magnificent 7 and broader tech sector peers. "However, we remain confident in further upside potential, given its expansive reach into AI opportunities across different layers of the value chain." (89 comments)
Inflation fears
Don't expect the inflation picture to get much, if any, better when the Commerce Department releases its March data for personal income and outlays today. Economists expect both the PCE price index and core PCE, which excludes volatile food and energy prices, to rise 0.3% M/M in March. To note, Q1 GDP didn't rise as much as expected, but PCE inflation came in hotter, unnerving investors. "This implies upside risks to the key monthly core PCE deflator and makes a near-term rate cut even less likely," said ING Economic and Financial Analysis. Even so, Treasury Secretary Janet Yellen affirmed that the fundamentals are in line with inflation continuing back down to normal levels. (10 comments)
Net neutrality
The Federal Communications Commission has voted to bring back net neutrality rules that had been repealed in 2017 under Trump's administration. The rules would prohibit internet providers from favoring or limiting certain kinds of traffic across the network, by re-establishing the treatment of internet providers as Title II common carriers. The FCC also used its new authority to block certain Chinese firms from providing broadband services in the U.S. over national security concerns. The FCC's decision "will deter investments and innovation necessary to connect all Americans," said Jordan Crenshaw, senior vice president, U.S. Chamber of Commerce Technology Engagement Center. (3 comments)
NBA streaming
Discussions are ongoing for the National Basketball Association's next round of media packages, which will be effective after the 2024-2025 season, and competition is heating up. Amazon (AMZN) and Google's (GOOG, GOOGL) YouTube are vying for a new NBA streaming package. Meanwhile, Comcast's (CMCSA) NBCUniversal has set its sights on a major TV deal currently held by Disney's (DIS) ESPN and Warner Bros. Discovery's (WBD) TNT. Both Disney and Warner have pitched paying much more while airing fewer games under a new pact. The companies' exclusive negotiating window to renew their contracts has expired, allowing the NBA to negotiate with other suitors. (3 comments)
Today's Markets
In Asia, Japan +0.8%. Hong Kong +2.1%. China +1.2%. India -0.8%.
In Europe, at midday, London +0.5%. Paris +0.3%. Frankfurt +0.7%.
Futures at 7:00, Dow +0.1%. S&P +0.7%. Nasdaq +1%. Crude +0.7% to $84.11. Gold +0.8% to $2,360.20. Bitcoin +0.9% to $64,172.
Ten-year Treasury Yield unchanged at 4.70%.
Today's Economic Calendar
Personal Income and Outlays
10:00 Consumer Sentiment
1:00 PM Baker Hughes Rig Count
Companies reporting earnings today »
What else is happening...
US2Y yield tops 5%, US10Y yield hits five-month high after GDP data.
Bristol-Myers (BMY) to cut 2,200 jobs as part of $1.5B cost savings plan.
Anglo American (OTCQX:AAUKF) rejects BHP's $39B takeover offer.
Intel (INTC) stumbles as weak guidance and AI, foundry issues weigh.
Cannabis stocks outperform as pressure mounts for rescheduling weed.
Microsoft (MSFT)-backed cybersecurity firm Rubrik soars 21% in debut.
PG&E (PCG) CEO: Warren Buffett 'got it wrong' on California wildfire risk.
Paramount (PARA) sinks amid report deal with Skydance is getting closer.
Hertz (HTZ) slides 20% as depreciating Teslas (TSLA) dent bottom line.
Cleveland-Cliffs (CLF) CEO still interested in acquiring U.S. Steel (X).
BOJ keeps interest rate unchanged; yen hits weakest level in 34 years.
U.S. PCE chain price indexes each increased 0.3% in March for the headline and core, in line with expectations.These follow respective increases of 0.3% for both in February, after January gains of 0.4% and 0.5%.They leave 12-month rates at a 2.7% y/y from 2.5% y/y for the headline, the hottest since November. The core rate was steady at 2.8% y/y, unchanged from February (for 2 decimal points), and ties the slowest since March 2021.Personal income rose 0.5% from 0.3% previously.Compensation increased 0.6% from 0.7%.Wage and salary income climbed 0.7% from 0.7% (was 0.8%).Disposable income rose 0.5% from 0.2%.Spending surged 0.8% again, as it did in February.The savings rate fell to 3.2% from 3.6%.
Snap price target raised to $16 from $12 at Truist
Truist raised the firm's price target on Snap to $16 from $12 and keeps a Hold rating on the shares. The company's stronger than expected Q1 results reflect broad-based improvement across DR and Brand businesses, along with traction with Snapchat+ and good cost management, the analyst tells investors in a research note. The inflection observed in both DR and Brand growth suggest that changes to the ad products are starting to resonate with the growing roster of advertisers, the firm added.
Largest decreases in stock option open interest $GILD $META $CLF $SNAP $RTX $SPCE $UBER $HTZ
Todays largest increases in stock option open interest $PFE $GILD $TSLA $HLT $AGNC $UBER $SIRI $WOOF $HL
Mohawk Industries reports Q1 adjusted EPS $1.86, consensus $1.68
Reports Q1 revenue $2.7B, consensus $2.65B. Commenting on the Company's first quarter results, Chairman and CEO Jeff Lorberbaum stated, "Though economic headwinds are impacting industry sales, margins and mix, our first quarter results reflected the positive effect of actions we are taking to enhance our performance. Our earnings per share rose year over year as a result of restructuring, productivity initiatives and benefits from lower cost raw materials and energy, partially offset by weaker pricing and mix. Across our regions, market conditions remained similar to the prior quarter, with significant pricing and mix pressure due to industry competition for volume. Though slowing, the commercial channel continues to outperform residential. Residential remodeling remains soft due to low housing sales and the impact of inflation on discretionary spending. Retailers have reported that consumers are reluctant to initiate higher ticket projects, with flooring facing greater pressure since most replacements can be readily deferred. Our teams remain focused on managing through the near-term environment, realizing sales opportunities, reducing controllable costs and completing restructuring initiatives. We continue to manage our production levels to align inventories with market demand. To stimulate sales, we are investing in new product introductions with enhanced features and merchandising that conveys the value of our collections. Given inflationary pressures in labor, benefits and other items, we continue to take additional actions to reduce our cost structure and improve productivity."
Federated Hermes reports Q1 EPS 89c, consensus 88c
Reports Q1 revenue $396.37M, consensus $401.26M. "Investors continued to turn to the attractive yields available in our liquidity products. Our money market asset increases drove Federated Hermes to record assets under management for the sixth consecutive quarter," said J. Christopher Donahue, president and chief executive officer. "Investors also sought to add duration to portfolios, and net sales of fixed-income products were led by our flagship core-plus offering, Federated Hermes Total Return Bond Fund, the Federated Hermes Total Return Bond ETF and ultrashort products. In equities, we saw demand for a range of our Federated Hermes MDT strategies utilizing our proprietary alpha-seeking model.
SNAP roaring
Alphabet authorizes repurchase up to an additional $70B in stock
Alphabet's board of directors authorized the company to repurchase up to an additional $70.0B of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares.
Alphabet authorizes repurchase up to an additional $70B in stock
Alphabet's board of directors authorized the company to repurchase up to an additional $70.0B of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares.
Roku options imply 12.6% move in share price post-earnings
Pre-earnings options volume in Roku is 1.7x normal with calls leading puts 3:2. Implied volatility suggests the market is anticipating a move near 12.6%, or $7.87, after results are released. Median move over the past eight quarters is 17.1%.
Snap Inc. options imply 18.7% move in share price post-earnings
Pre-earnings options volume in Snap Inc. is 2.3x normal with calls leading puts 10:9. Implied volatility suggests the market is anticipating a move near 18.7%, or $2.14, after results are released. Median move over the past eight quarters is 15.6%.
$CMG new all time high
companies reporting before tomorrow's open, with earnings consensus, include Exxon Mobil (XOM), consensus $2.20... Chevron (CVX), consensus $2.87... AbbVie (ABBV), consensus $2.23... HCA Healthcare (HCA), consensus $5.01... Colgate-Palmolive (CL), consensus 81c... Charter (CHTR), consensus $7.92... AutoNation (AN), consensus $4.27.
companies reporting after the market close, with earnings consensus, include Microsoft (MSFT), consensus $2.82... Alphabet (GOOGL), consensus $1.51... T-Mobile (TMUS), consensus $1.87... Intel (INTC), consensus 14c... Kla Corp. (KLAC), consensus $5.01... Gilead (GILD), consensus ($1.49)... Capital One (COF), consensus $3.33... Edwards Lifesciences (EW), consensus ... Dexcom (DXCM), consensus 64c... Atlassian (TEAM), consensus 62c... L3Harris Technologies (LHX), consensus $2.90... Western Digital (WDC), consensus 21c... Snap (SNAP), consensus (5c)... Juniper Networks (JNPR), consensus 40c... Roku (ROKU), consensus (61c).
$FSR
FISKER IN TALKS WITH FOUR AUTOMAKERS FOR POSSIBLE SALE: INSIDER
$MRX
Marex Group opens at $19.50, IPO priced at $19 per share
Marex Group plc, which identifies itself as a "diversified global financial services platform," priced its initial public offering at $19.00 per share. A total of 15,384,615 ordinary shares are being offered, of which 3,846,153 shares are being offered by Marex and 11,538,462 shares are being offered by certain selling shareholders. Marex will not receive any proceeds from any sale of shares by the Selling Shareholders. The ordinary shares began trading on the Nasdaq Global Select Market under the ticker symbol "MRX." The deal priced within the $18.00-$21.00 range. Barclays, Goldman Sachs, Jefferies and Keefe Bruyette acted as joint book running managers for the offering.
$SPY highsssssssssssssssssssss
$SPY highsssssssssssssssssssss
Treasury's $145 B 4-and 8-week bill auctions were very well received
Treasury's $145 B 4-and 8-week bill auctions were very well received, garnering some of the best metrics in months, if not on record. The shorter bill outperformed. The $70 B 4-week tranche stopped through at 5.275%, 1.7 bps below the 5.258% at the bid deadline. And it is 0.5 bps richer than last week's 5.280%. There were $214 B in bids for a 3.14 cover, much stronger than the prior 2.90 and the 2.86 average. Indeed, it is the highest since July. Indirect bidders accepted 70.6%, also well above the 65.2% previously and the 61.7% average. It is the highest since May. Dealers were left with a record low 23.4%, obviously less than the prior 28.8% and the 33.6% average. The $75 B 8-week offering cleared at 5.275%, right on the screws. And it is the same as last week's rate. Bids totaled $224.8 B for a solid 3.02 cover, above the 2.90 previously and the 2.85 average. It is the second highest since January. Indirect bidders accepted 66.5%, up from 58.9% previously and the 56.2% average. That is the best since May. Dealers were left with 28.6%, also less than last week's 35.5% and the 39.5% average. It is the lowest since May.
VIX +4%
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https://www.optionmillionaires.com/morning-reads-440/
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Chipotle price target raised to $3,600 from $3,200 at Evercore ISI
Evercore ISI raised the firm's price target on Chipotle to $3,600 from $3,200 and keeps an Outperform rating on the shares. The firm is raising its 2024 same-store sales growth forecast from 6% to 7.5% as Chipotle's superior "food quality for the money" and improving throughput is helping differentiate itself from an industry with declining traffic, noting that the company believes its throughput gains are in the early innings.
Align Technology price target raised to $349 from $327 at Leerink
Leerink raised the firm's price target on Align Technology to $349 from $327 and keeps a Market Perform rating on the shares. Align's upside surprise showed the differentiation in products vs. other concerns across the dental market, with strong margin pull-through alongside better revenue growth, the firm says. Meanwhile, the increased full-year revenue guidance should show both ongoing aligner demand but also contributions from the Lumina scanner launch/ramp and further roll-out of the Invisalign Palatal Expander, notes Leerink.
Harley-Davidson reports Q1 EPS $1.72, consensus $1.51
Reports Q1 revenue $1.73B, consensus $1.34B. "Harley-Davidson delivered a good start to the year with a six percent retail growth in North America, our largest and most important region," said CEO Jochen Zeitz. "We are very pleased with the reception of this year's new product line-up led by our new Touring motorcycles and look forward to continuing the positive momentum as the riding season comes into full swing."
TSLA ----
Chipotle price target raised to $3,070 from $2,442 at Piper Sandler
Piper Sandler analyst Brian Mullan raised the firm's price target on Chipotle to $3,070 from $2,442 and keeps a Neutral rating on the shares. The firm says Chipotle reported standout results, with same-store sales of +7.0% above both consensus of +5.1% as well as Piper's sense of investor expectations, and with RLMs of 27.5% -- which were +140 bps as compared to consensus. In particular, the firm thinks the results were punctuated by transaction growth of +5.4%, which is just so far in excess of what the industry is doing, that it has to "just pause and tip our caps to management."
goooooooooooooooooooooooooooooood morning bobber
Sherwin-Williams upgraded to Overweight on recent selloff at KeyBanc
KeyBanc analyst Aleksey Yefremov last night upgraded Sherwin-Williams to Overweight from Sector Weight with a $400 price target. The analyst recommends taking advantage of the 13% pullback in shares since the recent peak in late March. The firm acknowledges a "somewhat less confident" Q1 print and more questions about volume outlook for 2024 on higher interest rates, but believes investors should focus on Sherwin-Williams' volume recovery story that it expects to unfold in 2025 and 2026. KeyBanc expects the company to continue taking share in architectural paint.