[ad_1]
This week has been a great week for the stock market. The S&P 500 and Dow Jones Industrial Average hit record highs as investors digested gains and braced for more additions. Meanwhile, Wall Street analysts issued a number of bullish calls on five of our portfolio stocks. Both will report earnings next week. SBUX YTD Mountain Starbucks (SBUX) Year-to-date results Wall Street’s call: Wells Fargo expects Starbucks to improve economic conditions. Analysts said in a note Tuesday that sentiment is likely “too weak” ahead of the earnings. Quarterly results are expected to be released before the opening bell on Tuesday. Wells Fargo reiterated its buy rating on the stock. “SBUX’s mistakes appear to have been priced in, and we like the 24-year setup from here,” the analyst wrote. “It didn’t take long for the tide to turn from last quarter’s bull run, with stocks quickly falling on weaker checks in the first quarter, growing concerns about China, and negative headlines on unions and labor. ” Club view: We agree that headwinds appear to have caused this. Although the stock is a laggard in our portfolio, we are bullish on management’s plans to gradually expand its margins over the next few years. The company also expects to realize an additional $3 billion in savings programs and efficiencies over the next three years, which is further positive for the club’s holdings. MSFT YTD Mountain Microsoft’s (MSFT) Year-to-Date Performance Wall Street Calls: Morgan Stanley increases Microsoft’s price target to $450 from his $415 per share, citing the company’s strength from its generative artificial intelligence efforts raised to US dollars. “Strong positioning in the broader GenAI portfolio will drive further share gains in IT wallets, with company’s FY25 revenue/eps expected to beat shorts by 3%,” analysts wrote this week ahead of Tuesday’s after-earnings. ” he wrote. Morgan Stanley said 68% of CIOs surveyed expect to “adopt a Microsoft GenAI solution within the next 12 months.” The club’s view: Analysts are right to assume further upturns in Microsoft’s AI efforts. The company has become the clear leader among Big Tech in the emerging space since making his massive $13 billion investment in OpenAI, a leading AI startup. As a byproduct of this partnership, Microsoft last year announced a subscription program for its AI add-on, Copilot. We believe this service will add a great recurring revenue stream for the company. However, investors don’t expect to see a material impact on Copilot’s earnings in the coming quarters. AAPL YTD Mountain Apple’s (AAPL) Year-to-date Results Wall Street’s Call: Apple was added Tuesday to the company’s top “US 1 List” of self-proclaimed “Best Investment Ideas” from its acquisition of Bank of America – Rated stocks. Analysts at Goldman Sachs on Wednesday said the iPhone maker is well positioned to accelerate its services sector revenue in 2024. Apple will release its financial results after the bell on Thursday. “Services revenue is expected to reach $23.1 billion in Q1E 2024, up 11% year-over-year (including approximately 7 points of headwind from the prior year’s additional weeks), driven by App Store spending momentum, Should accelerate in Q2 2024, benefiting from price increases that will take effect in late 2023.” Select your service (e.g. Apple One, TV+, News+, Arcade). ” The company also expects “App Store momentum, service price increases, and iPad and Mac refreshes to accelerate consolidated revenue growth in the second half of 2024.” Club view: We are pleased that Street has changed his cautious attitude towards Apple. Analysts issued a slew of bearish calls in early 2024, and the stock was sold off. On January 2nd, we sold a small amount of Apple stock along with several other 2023 tech winners to rebalance our portfolio. Still, I remain firm in my overall beliefs. Like analysts, we see Apple’s services division (its most profitable business) as a solid revenue driver with high margins. AMZN YTD Mountain Amazon (AMZN) Year-to-date Performance Wall Street’s Call: Jefferies says Amazon stock has further upside after a great 2023. Analysts cited reasons for raising the mega-cap company’s price target to $190 per share from $175. E-commerce giants and cloud giants are focused on cutting costs. “We expect AMZN to continue to focus on ‘harvest mode’ to support record margins and stock price outperformance in 2024.” “While we are reducing headcount, we remain committed to improving cost efficiency in 2024,” the analysts asserted. Thursday’s research note — his week before earnings. Club’s view: Cutting jobs is never easy, but management efforts to reduce costs are essential for Amazon to free up capital for growth areas. The company has cut hundreds of positions across its Prime Video and MGM Studios businesses, and Twitch announced an additional 500 job cuts earlier this month. Management said it is also focused on content and product efforts. META YTD Mountain Meta Platforms (META) Year-to-date Results What Wall Street Says: Bank of America analysts raised Meta’s price target this week from $405 to $425 per share, pending Thursday’s after-bell announcement. We previously expected sales to exceed sales in the fourth quarter. “There is a favorable macro environment for advertising, with Reels’ contribution turning positive in 2024, with massive messaging revenue growth underway and strong AI assets driving performance, with costs able to be reduced if needed. remains positive, so we remain positive on the stock,” the analysts wrote. . The club’s view: Meta’s cost-cutting efforts, monetization through Reels, and improved ad spending environment should lead to market share growth in the long term. I’m looking forward to seeing what management has to say about this momentum at earnings time. (Jim Cramer’s charitable trusts are long his AAPL, SBUX, META, MSFT, AMZN, GOOGL. See here for a complete list of stocks.) Jim Cramer’s of his CNBC Investment Club As a subscriber, you will receive deal alerts before the gym. Make a deal. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in a charitable trust’s portfolio. If Jim talks about a stock on his CNBC TV, he will wait 72 hours before executing the trade after issuing a trade alert. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Traders work on the floor of the New York Stock Exchange (NYSE) on January 23, 2024 in New York City, USA.
Brendan McDiarmid | Reuters
This week has been a great week for the stock market.of S&P500 And that Dow Jones Industrial Average The stock hit a record high as investors digested their profits and prepared for more funds.
Next, Wall Street analysts made a number of bullish calls on five of our portfolio stocks. All of these portfolios will report earnings next week.
[ad_2]
Source link
