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4 hours ago
Jeremy Grantham says investors are ‘way beyond our level’ when it comes to AI
GMO co-founder Jeremy Grantham says artificial intelligence is more than just a passing fad, but that doesn’t mean now is a good time to buy stocks related to the trend.
“I think I’m very enthusiastic about AI. It’s a very important development, just like the internet was, and perhaps even more so. …But there needs to be a digestion step. I think we’re way over the edge,” Grantham said at Tuesday’s exchange-traded fund conference.
The fund manager, who has built a decades-long career around identifying blue-chip stocks and avoiding speculative booms, compared AI to the tech bubble around 2000 and the railroad stock bubble more than a century ago.
— Jesse Pound
4 hours ago
Bernstein says European earnings could remain higher
Bernstein said Europe has had a strong season and there are signs that this momentum will continue.
“European futures earnings are currently 14% above long-term trends and 30% higher than pre-COVID-19 at the market level, creating a worrying outlook,” the investment firm said. . “Is there a risk that forecasts will be lowered significantly and that earnings will return to their long-term trend?”
To answer this question, Bernstein polled analysts who cover banking, semiconductors, energy, autos, capital goods, or the European industries whose earnings have so far been the most above trend.
“While we expect short-term tactical earnings pullbacks in each case, for reasons specific to each industry, we do not see a material risk of earnings reverting to trend,” Bernstein said.
— Lisa Kailai Han
4 hours ago
Stock prices move significantly after hours
Let’s check out the companies that are becoming a hot topic for after-hours trading.
Robinhood Markets — Shares rose 9.5% after the trading platform reported unexpected earnings and sales. Robinhood reported a profit of 3 cents per share, compared to analysts’ expectations for a loss of 1 cent per share, according to LSEG (formerly Refinitiv). Sales totaled $471 million, exceeding analysts’ expectations of $457 million.
Lyft — Shares soared 18.5% in after-hours trading after the ride-hailing company reported strong fourth-quarter results and provided better-than-expected guidance. LSEG said the company’s fourth-quarter adjusted earnings per share were 18 cents, beating analysts’ expectations of 8 cents. Sales were $1.22 billion, in line with analyst expectations.
A complete list can be found here.
— Ha-Kyung Kim
4 hours ago
Stock futures open flat on Tuesday
U.S. stock futures opened little changed on Tuesday.
Dow Jones Industrial Average futures fell 19 points, or 0.05%. Futures tracking the S&P 500 were mostly flat, while Nasdaq 100 futures rose 0.08%.
— Ha-Kyung Kim
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