Broadcom soars in after-hours trading after strong results
20 minutes ago
Broadcom (AVGO) reported fourth-quarter earnings that beat analysts' expectations, sending the stock soaring in after-hours trading Thursday.
The company's fourth-quarter revenue rose 51% year over year to $14.05 billion, roughly in line with analyst consensus compiled by Visible Alpha. Net income was $4.32 billion, or 90 cents per share, up from $3.52 billion, or 83 cents per share, in the year-ago period and beat expectations.
Broadcom's full-year artificial intelligence (AI) revenue more than tripled to $12.2 billion, slightly above the previous estimate of $12 billion.
Looking ahead, the company expects first-quarter sales of $14.6 billion.
Broadcom stock rose 15% in recent after-hours trading.
–Andrew Kessel
Analysts remain bullish on Adobe despite weak guidance
56 minutes ago
Adobe (ADBE) stock fell sharply on Thursday after the company reported disappointing earnings guidance, but analysts said they were not optimistic about the company's ability to monetize artificial intelligence (AI), even if the mood was tempered. We also have generally bullish expectations.
Creative Cloud Inc. “has been a frustrating stock for much of FY24,” Mizuho Americas analysts said in a note Thursday. The company maintained its “outperform” rating but lowered its price target from $640 to $620.
Despite the lower price target, Mizuho analysts wrote, “We remain confident that ADBE will continue to significantly monetize its generative AI innovations.”
According to a transcript of the earnings call provided by AlphaSense, Adobe Digital Media President David Wadhwani said the company plans to introduce a more expensive version of its Firefly generation AI toolset. Wadhwani said the service aims to “monetize new users” and increase average revenue per user.
Analysts at Bank of America (BofA) on Thursday lowered their price target for Adobe from $640 to $605, but maintained a “buy” rating on the stock as well.
BofA analysts described the latest quarter as ending “a year of delayed AI gratification,” but said they saw “encouraging leading indicators for reacceleration heading into next year.” .
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Adobe stock fell 14% on Thursday, closing at $474.63. The stock is currently down 20% since the beginning of the year.
–Andrew Kessel
MetLife stock soars on new long-term growth strategy
1 hour 50 minutes ago
MetLife (MET) stock soars Thursday as the insurer announced new strategic plans to “accelerate growth across its global platform while delivering attractive returns and all-weather performance.” did.
Ahead of its investor day, the company announced its five-year business plan, which targets double-digit growth in adjusted earnings per share (EPS) and an adjusted return on equity of 15% to 17% (1%). It was reported that the company will introduce the “New Frontier” program. – Direct expense ratio reduced by a point, resulting in free cash flow of $25 billion.
CEO Michel Khalaf said New Frontier was designed to build on MetLife's five-year Next Horizon strategy, which it introduced in 2019 to “simplify and differentiate the company.” said. Mr. Khalaf said MetLife operates in a “very attractive market with a deep competitive moat and strong tailwinds,” offering opportunities to “deliver growth and attractive returns at lower risk.” He added that there is.
The insurer says the 'New Frontier' will focus on four key opportunity areas: expanding its leadership in group benefits, leveraging its unique retirement platform, accelerating growth in asset management and expanding in high-growth international markets. said.
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MetLife stock rose 3.6% on Thursday. The stock is up 26% so far in 2024, roughly matching the S&P 500's gain over that period.
–Bill McCall
“Moderate” growth expected in 2025
3 hours 37 minutes ago
Gold, which hit multiple record highs this year and posted its best annual performance in a decade, is expected to see slower growth next year, according to the World Gold Council.
The council's outlook for 2025 released on Thursday showed that gold prices rose in US dollar terms in the year to November as central bank and investor buying offset slowing growth in consumer demand, particularly from China. It said that it had increased by 28%.
“Market consensus on key macro variables such as GDP, yields and inflation, if taken at face value, suggests that gold growth in 2025 will be positive but more modest.” the council said.
The council said gold could rise further if central banks step up acquisitions. Or a “rapid deterioration in financial conditions” causes investors to look for safer assets. Chinese consumers have cut back on gold purchases this year due to the economic slowdown, but a return to gold could change the balance, the council said.
Conversely, the lifting of the US Federal Reserve's interest rate cutting cycle will have a negative impact on investor demand for gold. As interest rates rise, yields on lower-risk investments such as government bonds can appear more favorable when compared to gold.
Read the full article here.
–Nisha Gopalan
President Trump promotes tax cuts in historic New York Stock Exchange visit
4 hours 36 minutes ago
Donald Trump rang the opening bell and walked the floor of the New York Stock Exchange on Thursday, becoming the first president-elect to visit the exchange.
Spencer Pratt/Getty Images
President Trump, surrounded by his family, Cabinet nominees and executives from major companies, vowed to cut taxes and speed up the approval process for investments in the United States.
He also expressed support for the development of artificial intelligence through investments in energy projects.
The event coincided with Trump being named Time magazine's Person of the Year for the second time. He was given the title after his first successful bid for president in 2016.
Read more about President Trump's visit to the New York Stock Exchange here.
–Colin Laidley
Warner Bros. Discovery stock soars due to restructuring
5 hours 49 minutes ago
Warner Bros. Discovery (WBD), the latest media giant to emerge from cord-cutting and the rise of streaming, has announced a restructuring with plans to separate its television business from its streaming and movie studios.
The news sent shares up more than 15% in Thursday afternoon trading, bringing the stock back into positive territory this year.
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Warner Bros. Discovery announced Thursday that it is creating two separate business units. One will focus on global linear TV, including “news, sports, scripted and unscripted programming,” and the other will house global streaming platforms and movie studios, including Max.
Warner Bros. Discovery said it expects the new corporate structure to be in place by mid-2025.
Media companies are weathering the decline of their traditional TV businesses while also struggling to transition to streaming as rivals like Netflix (NFLX) soar in popularity. Comcast (CMCSA) last month announced plans to spin off its NBCUniversal cable TV network, which includes channels like MSNBC, CNBC, and E!.
–Nisha Gopalan
Adobe's price level to watch as stock prices fall due to weak outlook
7 hours 20 minutes ago
Adobe (ADBE) stock fell sharply early Thursday after the multimedia software provider released a revenue outlook that fell short of Wall Street's expectations.
Since mid-October, Adobe stock has been rising within an ascending wedge, mimicking a similar pattern that formed on the charts from July to September. Interestingly, the earnings gap breakdown followed its initial formation, similar to what's been happening after the company's most recent quarterly results.
Investors should keep an eye on important support levels near $500, $475, and $440 on Adobe's chart, as well as important overhead areas near $565 and $635.
Shares have fallen 13% in recent trading to around $480.
Read the full technical analysis here.
–timothy smith
ServiceTitan's IPO price exceeds expectations
8 hours 18 minutes ago
ServiceTitan will begin trading on the Nasdaq today under the ticker symbol “TTAN” following an initial public offering (IPO) that exceeded the company's expectations.
The company, which provides software services to trading companies, sold 8.8 million shares for $71 a share, beating its latest estimate of $65 to $67 a share. Last week, ServiceTitan expected the sale price to be between $52 and $57 per share.
The IPO at the new price raised nearly $625 million, valuing the company at $6.3 billion.
In addition to yesterday's sale, ServiceTitan is offering the underwriters a 30-day option to purchase an additional 1.32 million shares at a price of $71.
Co-founders and CEOs Ara Mahdessian and Vahe Kuzoyan started ServiceTitan in 2012 as a way to help their immigrant parents run their trading business. They currently report having around 8,000 active customers.
–Bill McCall
Pay attention to Tesla's stock price, which is at an all-time high
9 hours 7 minutes ago
Tesla (TSLA) stock rose for the sixth day in a row on Wednesday, hitting a three-year high amid massive post-election rallies.
Stocks have rallied about 70% since voting day last month on optimism that CEO Elon Musk's close relationship with President-elect Donald Trump could benefit automakers. rose.
Tesla stock has continued its steep upward trend since breaking out of the ascending triangle early last month following the election.
The measurement principle is to calculate the percentage change between the lower and upper trendlines of the ascending triangle and add it to the value of the upper trendline of the pattern, predicting a bullish target price of $585.65. Masu.
Investors should keep an eye on the key support levels on Tesla's chart near $380 and $300.
In recent pre-market trading on Thursday, the stock fell 1% to $421.
Read the full technical analysis here.
–timothy smith
Futures are expected to lower the opening prices of major indexes
10 hours 5 minutes ago
Futures tracking the Dow Jones Industrial Average fell 0.1%.
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S&P 500 futures fell 0.2%.
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Nasdaq 100 futures fell 0.4%.
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