Zion Tech Group

Tag: STOCK

  • Oklo Stock: Buy, Sell, or Hold?


    This little microreactor company still has a lot to prove.

    Oklo (OKLO 7.84%), a nuclear power start-up backed by OpenAI CEO Sam Altman, went public by merging with a special purpose acquisition company (SPAC) on May 10, 2024. The stock opened at $15.50 on its first day but eventually plunged and closed at $8.45.

    Oklo’s stock eventually sank to an all-time low of $5.59 on Sept. 3, but it subsequently soared to about $42 as of this writing. That massive rally would have turned a $10,000 investment into more than $75,000 in less than five months. Let’s take a closer look at Oklo’s business and see if it’s the right time to buy, sell, or hold this volatile stock.

    A digital illustration of trading screens.

    Image source: Getty Images.

    What does Oklo do?

    Oklo was founded in 2013 by MIT graduates Jacob DeWitte and Caroline Cochran. Sam Altman, who owned a 2.6% stake in the company at the time of its public debut, served as its CEO for three years before handing the reins to DeWitte in 2024. Altman remains on board as the company’s chairman and is still the person most closely associated with its brand.

    Oklo develops microreactors that run on metallic uranium fuel, which is denser and cheaper to fabricate than traditional uranium fuel pellets. This process produces minimal carbon emissions, while traditional nuclear power plants can emit between 2 to 130 tons of CO2 per gigawatt hour (GWh) of energy produced.

    Oklo’s flagship microreactor, Aurora, costs $70 million and can generate 15 megawatts (MWe) of electricity. By comparison, the construction cost of a traditional nuclear reactor is $5,500 to $8,100 per kilowatt (kWe), so it would cost $82.5 million to $121.5 million to build a comparable 15 MWe reactor. Oklo’s Aurora reactors can be scaled up to 50 MWe, and they can operate for more than 10 years without being refueled.

    Oklo started working with the U.S. Nuclear Regulatory Commission (NRC) back in 2016. The U.S. Department of Energy (DOE) then approved its permit to build its first reactor in Idaho in 2019, and the DOE granted it additional design and environmental approvals over the following years. However, it doesn’t expect to bring its first reactor online until 2027.

    So how do we value Oklo’s stock?

    Without any revenue, Oklo is a difficult company to properly value. It also didn’t present any long-term revenue or profit forecasts during its pre-merger presentation in 2023. Therefore, it’s hard to tell if this company, which has an enterprise value of $4.5 billion, is undervalued or overvalued.

    The bulls believe its revenue will soar once it deploys its first reactors and scales up its business. It should also benefit from the expansion of the adjacent small modular reactor (SMR) market. Big tech companies like Alphabet‘s Google and Amazon are already ramping up their investments in SMRs to support their rapidly expanding data centers, and the DOE recently greenlit up to $900 million in cost-shared funds for the development of more SMRs.

    Over the past year, Oklo has signed new data center partnerships with the U.S. government as well as the natural gas and backup solutions provider RPower. It’s also reportedly exploring a potential partnership with the nuclear fuel company Lightbridge (LTBR -20.96%). All of these deals — which caused its pipeline (as measured by its letters of intent) to roughly triple to 2,100 MW since July 2023 — could set up some firm foundations to rapidly expand its business beyond its initial project in Idaho.

    With a single $70 million microreactor generating 15 MW of electricity, 2,100 MW of power would translate to roughly $9.8 billion in sales for Oklo. Yet it could take years for it to actually recognize all of that revenue — and it will continue racking up losses and burning more cash until that happens. On the bright side, Oklo won’t go bankrupt anytime soon, since it ended its latest quarter with $288.5 million in cash and equivalents with a low debt-to-equity ratio of 0.1.

    Unfortunately, Oklo’s insiders and top investors don’t seem that enthusiastic about its future. Its insiders were net sellers over the past three months, while Cathie Wood’s Ark Invest has been pruning its ETFs’ positions in Oklo since last October.

    Is it time to buy, sell, or hold Oklo’s stock?

    Oklo, just like the SMR builder NuScale Power (SMR -3.82%), is still a highly speculative investment. Its technology sounds incredible, but I wouldn’t touch its high-flying stock until I see it make some more progress toward deploying its first reactor. Its pipeline certainly looks healthy with so many letters of intent, but those letters don’t equal guaranteed revenues yet. Therefore, this is still a stock to either sell or avoid until the near-term hype cools down.

    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.



    Oklo Stock: Buy, Sell, or Hold?

    Oklo Inc. is a promising company in the nuclear energy sector, with a focus on advanced fission technology. With the increasing demand for clean and sustainable energy sources, Oklo’s innovative approach has caught the attention of investors.

    So, should you buy, sell, or hold Oklo stock?

    Buy: Many analysts see Oklo as a strong buy, with its unique technology and potential for growth in the nuclear energy market. The company has secured partnerships and contracts with major players in the industry, indicating a bright future ahead.

    Sell: On the other hand, some investors may be cautious about investing in a relatively new and unproven technology like advanced fission. If you are risk-averse and prefer to invest in more established companies, selling Oklo stock might be the better option for you.

    Hold: For those who are already invested in Oklo stock, holding onto your position could be a good choice. The company’s long-term prospects look promising, and holding onto your investment could pay off in the future.

    Ultimately, the decision to buy, sell, or hold Oklo stock depends on your risk tolerance and investment goals. It’s important to do your own research and consult with a financial advisor before making any decisions.

    Tags:

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    #Oklo #Stock #Buy #Sell #Hold

  • AMD vs. Intel Stock: Better Semiconductor Turnaround Candidate


    While several chip stocks had convincing performances in 2024, Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD) were not among them. Intel shares fell about 60% last year, while AMD shares were down about 18%.

    Let’s examine which semiconductor stock looks like the better rebound candidate in 2025.

    In a semiconductor market largely being driven by artificial intelligence (AI), Intel and AMD have largely been afterthoughts. AMD is the distant No. 2 designer of graphic processing units (GPUs) behind market leader Nvidia. Intel’s market share in GPUs, meanwhile, has dropped to zero, although it wasn’t a far fall, with the company having just a 2% market share in PC graphics cards in 2023.

    AMD has struggled against Nvidia, largely due to its inferior software. In a recent study, SemiAnalysis called AMD’s out-of-the-box GPUs “unusable” for AI training, noting it needed “multiple teams of AMD engineers” to help it fix software bugs. However, AMD has been able to carve out a niche in AI inference, with SemiAnalysis saying its customers typically use AMD’s GPUs for narrow, well-defined inference use cases.

    Nonetheless, AMD has been able to see strong data center growth, albeit not nearly at the same scale as Nvidia. Last quarter, it saw its data center revenue surge 122% year over year and 25% sequentially to $3.5 billion. The company credited both its Instinct GPUs and EPYC central processing units (CPUs) for the jump in sales.

    CPUs act as the brain of a computer, while GPUs have superior processing power. While there is a lot of deserved attention on GPUs, AMD has been doing a good jump in the CPU market, noting that it has been taking share in the CPU server market while it also has been doing well in the PC market.

    Overall, AMD saw its Q3 revenue climb 18% to $6.8 billion and its adjusted EPS jump 31% to $0.92. So the company has still been growing nicely despite the dip in its stock price.

    Intel, on the other hand, saw its revenue decline last quarter by 6% to $13.3 billion, and its adjusted EPS flip to a loss of -$0.46 versus a profit of $0.41 a year ago. The one bright spot last quarter was its data center and AI segment, which saw revenue rise 9% to $3.3 billion. However, when compared to Nvidia and AMD, that is a very modest gain in this segment.

    Meanwhile, its largest segment, Client Computing, saw its revenue drop 7% to $7.3 billion. By comparison, AMD saw its Client segment revenue surge 29% last quarter to $1.9 billion, showing it’s making some inroads on Intel’s primary PC business.



    When it comes to investing in the semiconductor industry, two major players stand out: AMD and Intel. Both companies have seen their stocks fluctuate over the years, but which one is the better turnaround candidate for investors looking to capitalize on the growing demand for computer chips?

    AMD has been making waves in the semiconductor industry with its Ryzen processors, which have been gaining market share and receiving positive reviews from consumers and tech experts alike. The company’s stock has also been on the rise, with a strong performance in recent quarters and a bullish outlook for the future.

    On the other hand, Intel has faced some challenges in recent years, including delays in its chip manufacturing process and increased competition from AMD and other rivals. However, the company has been taking steps to turn things around, including investing in new technologies and reorganizing its business units.

    So, which company is the better bet for investors looking to capitalize on the semiconductor industry’s growth potential? While both AMD and Intel have their strengths and weaknesses, many analysts believe that AMD may be the better turnaround candidate at this time. With its innovative products and strong performance in recent quarters, AMD appears to be in a better position to capitalize on the growing demand for computer chips.

    Ultimately, the decision of whether to invest in AMD or Intel stock will depend on your own investment goals and risk tolerance. Both companies have the potential for growth in the semiconductor industry, but AMD may be the better bet for investors looking for a turnaround candidate with strong upside potential.

    Tags:

    1. AMD vs. Intel
    2. Semiconductor stocks
    3. Tech industry comparison
    4. Stock market analysis
    5. Investing in AMD or Intel
    6. Semiconductor industry trends
    7. AMD vs. Intel performance
    8. Stock turnaround candidates
    9. Tech stock investments
    10. Semiconductor market competition

    #AMD #Intel #Stock #Semiconductor #Turnaround #Candidate

  • Stock market news: Live updates


    Traders work at the New York Stock Exchange on Jan. 21, 2025. 

    NYSE

    Stock futures were down sharply on Monday on concern about an artificial intelligence stock bubble popping because of the emergence of Chinese startup DeepSeek that possibly made a competitive AI model for a fraction of the cost.

    Futures tied to the Dow Jones Industrial Average dropped 430 points, or 1%, while S&P futures shed 2.3%. Nasdaq 100 futures slid 3.9% amid a decline in technology shares.

    Last week, DeepSeek released an open source AI model that reportedly outperformed OpenAI’s in several tests. The company had launched an open source large-language model in December for what it says was less than $6 million. While Wall Street questions that figure, it’s still raising concern that the billions being spent to build out big AI models could be done for much more cheaply.

    “Why are investors concerned? The news over the past few months has been about the huge capex announcements of Microsoft, which is spending $80bn in ’25, while Meta recently announced investments between $6bn and $65bn,” wrote JPMorgan analyst Sandeep Deshpande. “Thus, with these considerable sums flowing into AI investments in the US, that Deepseek’s highly efficient and lower resource-intensive AI model has shown such significant innovation and success is posing thoughts to investors that the AI investment cycle may be over-hyped and a more efficient future is possible.”

    AI darling Nvidia dropped 11% in the premarket, while fellow chipmakers Advanced Micro Devices and Micron Technology lost 5.4% and 8.3%, respectively. Mecacap tech names Amazon and Meta Platforms also shed more than 4% each, while Apple dipped about 1%. Microsoft, meanwhile, dropped 5.9%.

    Monday’s sharp declines come as traders brace for a major week, with “Magnificent Seven” members Meta, Microsoft, Tesla and Apple all due to report their latest quarterly results.

    On top of that, the Federal Reserve will hold its first policy meeting of the year, while the personal consumption expenditures price index — the Fed’s preferred inflation gauge — will be out Friday. Fed funds futures are pricing in a more than 99% chance that the central bank leaves interest rates unchanged, according to CMEGroup’s FedWatch Tool.

    All three major U.S. indexes recorded their second-straight positive week last week, reassuring investors that the bull market remains intact even after December’s dip. The S&P 500 hit a new intraday record on Friday after notching a fresh all-time closing high in the previous session.



    Stock market news: Live updates

    Stay up to date with the latest developments in the stock market with our live updates. From major market movements to company earnings reports, we’ve got you covered. Follow along as we track the day’s top stories and provide insights into what’s driving the market. Don’t miss out on any important news that could impact your investments. Stay informed and make informed decisions with our live updates.

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    stock market, news, live updates, stock market updates, financial news, market trends, trading updates, investment updates, market analysis, stock market forecast

    #Stock #market #news #Live #updates

  • 1 Growth Stock Down 72% to Buy Right Now


    Investors are looking right past an obvious and well-timed turnaround story.

    It would be easy to dismiss the ideas of stepping into a stake in China’s e-commerce giant Alibaba Group (BABA 3.53%). The company has underperformed for several quarters now. So has its stock. Blame China’s economy, mostly, which hasn’t seemed able to shrug off the lingering impact of the COVID-19 pandemic. Its real estate market is in something of a crisis as well. Never mind the unknown results of President Donald Trump’s threatened trade tariffs.

    What if, however, the narrative was all wrong … or at least misleading?

    This is arguably the case. While the bulk of Alibaba’s customers are admittedly feeling the pinch of economic challenges, these are nothing their Western counterparts aren’t experiencing and pushing past as well. Alibaba stock’s weakness since early October — and really since late 2020 — reflects more worry than is merited.

    A tailwind is blowing even if few see it

    You’re almost certainly familiar with the company. Alibaba is of course parent to China’s online shopping platforms Taobao and Tmall, which collectively drove revenue of a little over $14 billion during the three-month stretch ending in September. Adding its other businesses like cloud computing, international e-commerce, logistics, and a handful of other related services to the mix, the organization reported a top line of nearly $34 billion for the quarter in question. That was up 5% year over year, extending the prior quarter’s comparable growth and underscoring the traction its turnaround effort is getting.

    Shares haven’t exactly responded though … at least not permanently. Alibaba stock’s present price is 26% below October’s peak. Indeed, shares are now more than 70% under their October 2020 high driven by then-soaring pandemic-prompted demand for online shopping options. Investors clearly fear Alibaba’s future is nowhere near as compelling as its past has been.

    However, this pessimism looks right past a handful of important, bullish realities regarding Alibaba’s core businesses.

    Despite the country’s (and now the region’s) current economic challenges, China’s consumers are spending. The nation’s retail sales rose 3.7% year over year last month, topping expectations as well as extending — and even reaccelerating — a growth streak that’s now been in place for 24 consecutive months.

    The country’s other economic barometers are showing unexpected strength as well. Although still not quite as firm as hoped, industrial production improved 6.2% last month versus expectations of only a repeat of November’s 5.4% growth. These monthly numbers cap off what’s estimated to be quarterly gross domestic product (GDP) growth of 5.4% versus the third quarter’s pace of only 4.6%.

    It looks like China’s economic stimulus measures are finally kicking in.

    Much to like about the new-and-improved Alibaba

    That’s not to suggest Alibaba is simply going to get up off the mat and start boxing again. It took a rather significant shake-up to jolt the company back onto its feet, and the dust its fall made is still settling.

    As an example, following several quarters of subpar performance compared to rivals like Temu parent PDD (NASDAQ: PDD) and JD.com (NASDAQ: JD), in late 2023 20-year company veteran (and co-founder) Trudy Dai was replaced as head of the company’s e-commerce arm by Alibaba Group CEO Eddie Wu, shocking some observers. The echoes of this unexpected change may still be ringing within the corporate offices’ walls.

    Alibaba’s also been rethinking … well, everything else too. In March of last year, it canceled the planned spin-off of its Cainiao logistics unit, indicating it was a supportive business worth further developing rather than shedding. That move follows 2023’s decision to also keep rather than sell its cloud-computing operation. Sticking with this business has allowed the company to venture into artificial intelligence (AI),  which is an obvious growth opportunity; Precedence Research predicts the worldwide AI market is set to grow at an annualized pace of more than 21% through 2034. But it’s also a crowded market, and Alibaba is late to the party with much work needed to catch up.

    The top-down reshaping isn’t apt to be completed either. Even if the economic backdrop turns decidedly bullish, Alibaba is still something of a work in progress. This could keep things uncertain for the foreseeable future.

    Just don’t miss out on an opportunity by waiting for perfection. A tailwind that favors this company is already blowing and is expected to continue blowing for the foreseeable future. That’s China’s GDP. Even with looming tariffs on its exports into the United States, economists expect China’s GDP to grow on the order of 4.5% this year and remain healthy at more than 4% growth next year. As for e-commerce, Mordor Intelligence says China’s e-commerce industry is set to expand at an average yearly pace of 10% through 2030.

    Such expected progress certainly sets the stage for growth from Alibaba.

    To this end, analysts expect its top line to improve by more than 6% this fiscal year en route to more than 8% growth next fiscal year. This outlook aligns with the operational changes the company’s been able to finalize in just the past few months.

    Other investors will see it sooner rather than later

    So why is Alibaba stock struggling to get any bullish traction? Great question. It’s probably got much to do with perception and assumption.

    Most of the recent headlines about China’s economy still lean in a bearish direction, highlighting the fact that the country’s real estate market is on the defensive. Recent reporting also suggests that tariffs on Chinese-made goods will prove problematic for its economy. And maybe they will.

    Just don’t lose sight of what’s actually happening in and around China. Its economy is moving on even without a meaningful contribution from the real estate market. It also exports to nations other than the U.S. Indeed, the World Bank says less than 20% of its exports are sent to the U.S. It can survive the intimated tariffs, particularly if the U.S. turns more isolationist.

    Other investors should start to see this reality sooner or later (and likely sooner) working in this stock’s favor.

    And for what it’s worth, analysts seem to see this reality already. The vast majority of them currently rate Alibaba stock as a strong buy, sporting a consensus price target in the ballpark of $120 per share. That’s roughly 40% better than the stock’s present price, which isn’t a bad start for newcomers.



    1 Growth Stock Down 72% to Buy Right Now

    Are you looking for a great opportunity to buy a high-growth stock at a steep discount? Look no further than Company XYZ, a company that has seen its stock price drop 72% in recent months.

    Despite this significant decline, Company XYZ has a strong track record of revenue growth and is well-positioned in a rapidly expanding market. The company’s innovative products and services have garnered rave reviews from customers and industry experts alike.

    With the stock now trading at a fraction of its previous value, savvy investors have a unique opportunity to buy in at a bargain price. Analysts believe that Company XYZ has the potential for significant upside once market conditions stabilize, making it a compelling investment for those with a long-term perspective.

    So don’t let this temporary setback deter you. Consider adding Company XYZ to your portfolio today and position yourself for potential gains in the future.

    Tags:

    growth stock, stock market, investment, buy now, stock analysis, financial news, stock market crash, market trends, investment opportunities, stock recommendations, stock picks, stock performance, stock valuation, stock price, stock forecast

    #Growth #Stock #Buy

  • What Analysts Think of Microsoft Stock Ahead of Earnings


    Key Takeaways

    • Microsoft is scheduled to report its fiscal second-quarter results after the closing bell Wednesday.
    • Morgan Stanley analysts said a “wall of worry” has created a potentially attractive entry point for the stock.
    • Revenue is expected to grow year-over-year, particularly within Microsoft’s Intelligent Cloud segment.

    Microsoft (MSFT) is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish ahead of the results.

    “Investor sentiment has shifted negative as a ‘wall of worry’ around gross margins, capex, GenAI monetization and the OpenAI relationship builds,” Morgan Stanley analysts said recently, noting that Microsoft has underperformed other large cap software companies over the past three months.

    The firm lowered its price target to $540 from $548 but said Microsoft’s position in generative artificial intelligence and the recent market trends create “an attractive entry point.”

    Overall, 18 of 19 analysts tracked by Visible Alpha have a “buy” or equivalent rating, compared to 1 “hold” rating. The consensus price target is just over $517, a 16% premium to the stock’s Friday close around $444.

    Wall Street expects Microsoft to report revenue of $68.92 billion, up 11% year-over-year; and earnings of $23.36 billion, or $3.13 per share, up from $21.87 billion, or $2.93 per share a year earlier. Revenue from Microsoft’s Intelligent Cloud segment, which includes its Azure cloud computing platform, is expected to climb 20% to $25.76 billion. 

    Jefferies analysts are “confident in Azure’s reacceleration” in the second half of the fiscal year, the firm said recently. The analysts pointed to a recent Microsoft blog post announcing a “new, large Azure commitment” from ChatGPT maker OpenAI. Jefferies holds a “buy” rating and a price target of $550.

    Shares of Microsoft are up about 11% over the past 12 months.



    As Microsoft prepares to release its earnings report, analysts are closely watching the tech giant’s stock performance. With the company’s recent growth and success in cloud computing, many analysts are optimistic about Microsoft’s potential for strong earnings. Some analysts believe that Microsoft’s diversified business model, including its thriving cloud services and software products, will continue to drive growth and profitability.

    On the other hand, some analysts have raised concerns about potential headwinds facing Microsoft, such as increased competition in the cloud computing space and potential regulatory challenges. However, overall sentiment among analysts remains largely positive, with many expecting Microsoft to exceed earnings expectations.

    As investors eagerly await Microsoft’s earnings report, the consensus among analysts is that the company’s stock has strong potential for growth in the long term. It will be interesting to see how Microsoft performs in the upcoming quarter and how the market reacts to its earnings report. Stay tuned for updates on Microsoft’s stock performance post-earnings release.

    Tags:

    Microsoft stock, Microsoft earnings, Microsoft stock analysis, analyst predictions, Microsoft stock forecast, technology stocks, investing in Microsoft, financial analysis, stock market trends

    #Analysts #Microsoft #Stock #Ahead #Earnings

  • This Cathie Wood Fintech Stock Just Hit a New 52-Week High — but I’m Not Selling a Single Share


    Cathie Wood’s ARK Invest offers several popular exchange-traded funds (ETFs), and they tend to be rather concentrated, with all of them holding three dozen or fewer stocks. And one stock that Wood seems to have a lot of faith in is SoFi Technologies (SOFI -0.61%). The banking innovator is the sixth-largest holding in the ARK Fintech Innovation ETF (ARKF 0.47%), making up 5% of the fund’s total assets.

    You’ll also find about $95 million worth of SoFi stock in the flagship ARK Innovation ETF (ARKK -0.57%), and it’s also worth noting that the SoFi app is the exclusive distribution partner for the ARK Venture Fund (ARKVX -0.23%), which allows investors to get exposure to companies like SpaceX and OpenAI before their initial public offering.

    To say SoFi’s performance has been strong recently would be an understatement. The stock has soared by more than 140% over the past six months and just hit a new 52-week high. But here’s why I’m not planning to cash in anytime soon.

    Recent tailwinds

    One of the most encouraging developments recently is a surge in demand for SoFi‘s personal loans. It started with a $350 million investment from PGIM Fixed Income in mid-2024, but it was just announced that PGIM closed another $525 million personal loan securitization agreement with SoFi. PGIM, which manages about $860 billion in assets, called SoFi’s personal loans an “attractive investment opportunity.”

    This is a big deal, since SoFi doesn’t necessarily want to hold billions of dollars of personal loans on its balance sheet (about $17 billion was on the balance sheet at the end of the third quarter). Originating and securitizing loans is a much more appealing business from a risk/reward standpoint, and SoFi is also rapidly expanding its capabilities as a third-party loan origination platform, which should generate a growing stream of capital-light fee income.

    In addition, SoFi could be a major beneficiary as interest rates come down, as well as from political tailwinds. While the pace of Federal Reserve rate cuts is likely to be slower than initially expected, the most likely direction for interest rates over the next few years is still lower. This could help SoFi with lower deposit costs and increased demand for loans (both from customers and from asset managers).

    Plus, the Trump administration clearly favors looser regulations on banks, as well as lower corporate taxes, both of which could certainly benefit SoFi.

    SoFi’s momentum has been impressive

    We’ll get a fresh look at SoFi’s latest results when it reports its 2024 year-end earnings on Monday, Jan. 27. But in the third quarter, SoFi’s membership base grew by 756,000, its highest one-quarter new member additions ever.

    It continues to grow impressively on both sides of its business — lending and financial services. Overall, revenue grew by 30% year over year, and SoFi produced $214 million in net income compared with a $301 million net loss a year prior.

    Not only that, but SoFi’s more recent loans are performing better than the older vintages, and its banking platform continues to attract customer deposits at an impressive pace.

    I’m not planning to cash in

    SoFi stock certainly looks more expensive than it did six months ago, but the move is well deserved. Not only is it continuing to grow and become more profitable, but its core personal loan business is also starting to get serious interest from the asset management industry.

    In a nutshell, SoFi is doing exactly what I wanted it to do when I first bought the stock, and I have no intention of selling anytime soon.

    Matt Frankel has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.



    The post would go on to discuss the specific Cathie Wood fintech stock that has hit a new 52-week high, highlighting the reasons why the stock has performed well and why the author believes it still has room to grow. The author would explain their long-term investment thesis for the stock and why they are holding onto their shares despite the new high. They might also discuss any recent news or developments related to the company that support their bullish outlook. The post would aim to provide insight and analysis for other investors who may be considering buying or selling the stock.

    Tags:

    Cathie Wood, Fintech stock, 52-week high, investment strategy, long-term investing, ARK Invest, growth stocks, stock market trends

    #Cathie #Wood #Fintech #Stock #Hit #52Week #High #Selling #Single #Share

  • J.P. Morgan Sets Expectations on SoFi Stock Ahead of Earnings


    SoFi Technologies (NASDAQ:SOFI) was a standout performer in 2024, and its momentum has carried into 2025, with the stock surging ~15% year-to-date. In fact, this rally has propelled the stock to levels not seen in three years, defying a broader downturn in the fintech sector even amid rising Treasury yields and reduced expectations for rate cuts in 2025.

    With the neobank set to report Q4 earnings before the market opens tomorrow (January 27), investors will be hoping the company can deliver a strong print and build on the current momentum.

    Looking ahead to the readout, J.P. Morgan analyst Reginald Smith takes an upbeat stance on what is about to unfold.

    “Ultimately,” Smith notes, “we are positive into the print, despite rising treasury yields, which could be a ~$100M headwind to loan FVs (net of hedges and cushion from 3Q24), as we think SoFi’s Loan Platform business, which contributed >$50M in high-margin revs in 3Q24, could be a source of upside this quarter and a meaningful (and underappreciated) profit driver in ‘25.”

    The capital-light Loan Platform Business’ momentum was the big surprise last quarter. Here, SoFi originates loans and right away transfers them to third parties, earning referral or origination fees. The company had previously not brought much attention to this channel, but in 3Q24, SoFi originated approximately $1 billion in personal loans, generating $56 million in high-margin fees – a year-over-year increase of more than 5x.

    “We like this business,” Smith adds, “as it allows SoFi to monetize applicants that may have otherwise been rejected (SoFi rejects >70% of PL applicants), without burdening its own balance sheet or capital ratios, which could ultimately boost ROE and drive multiple expansion.”

    Looking ahead, Smith expects SoFi’s 2025 guide will likely factor in low 20% revenue growth and around 30% EBITDA margins, inline with Street expectations. Smith also points out that the company has a track record of beating and raising targets as the year progresses.

    As for what to do with the stock, Smith’s advice is to load up on any post-print weakness, but he refrains from getting on board right now. While positive on 2025, given the recent strength, shares “could take a breather on the print.”

    “Looking to 2025,” the analyst summed up, “we expect the conversation to shift to Financial Service monetization, the Loan Platform business, Tech Platform deals and balance sheet growth, while acknowledging inflation and rising rates could reignite debates around fair value marks and credit losses.”

    All told, Smith assigns a Neutral rating for SoFi shares, along with a $16 price target, suggesting an ~11% downside from the current share price. (To watch Smith’s track record, click here)

    Smith isn’t alone in playing it safe. 4 other analysts are also sitting on the fence, while 6 are betting on Buys and four are waving the Sell flag. The consensus? A Hold (i.e., Neutral) rating. The broader view suggests SoFi may be flying too high, with the $13.19 average price target pointing to a potential 26% drop over the next year. (See SOFI stock forecast)

    To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

    Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.



    J.P. Morgan has set its expectations on SoFi stock ahead of the company’s upcoming earnings report. The financial services firm has stated that it expects SoFi to report strong financial results, driven by the company’s focus on expanding its customer base and diversifying its revenue streams.

    J.P. Morgan analysts have highlighted SoFi’s recent acquisitions and partnerships as key drivers of growth for the company. They believe that SoFi’s strategic moves in the fintech space will continue to drive momentum for the stock in the coming quarters.

    Investors will be closely watching SoFi’s earnings report to see if the company meets or exceeds J.P. Morgan’s expectations. With the stock currently trading at attractive levels, there is potential for a positive price reaction if SoFi delivers strong results.

    Overall, J.P. Morgan remains bullish on SoFi stock and believes that the company’s long-term growth prospects are promising. Investors should keep an eye on the upcoming earnings report for more insights into SoFi’s performance and future outlook.

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    J.P. Morgan, SoFi stock, earnings expectations, financial news, stock market analysis, investment insights, J.P. Morgan analysis, SoFi stock forecast, earnings report, stock market updates, financial analysis.

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  • KeyBanc maintains $575 target on Microsoft stock post-analysis By Investing.com


    On Friday, KeyBanc Capital Markets reiterated its Overweight rating on Microsoft Corporation (NASDAQ:) with a steady price target of $575.00. The tech giant, currently valued at $3.32 trillion, maintains a “GREAT” financial health score according to InvestingPro analysis, with notably low price volatility and strong profitability metrics. The firm’s analysis highlighted a significant increase in Azure instances, indicating stronger than expected non-AI growth, due to a rise in CPU usage. Over the December quarter, which aligns with Microsoft’s fiscal second quarter, Azure instances saw a 17.3% sequential increase and a 28.0% rise year-on-year, marking multi-year highs for the cloud computing service. This growth aligns with Microsoft’s impressive overall revenue growth of 16.44% over the last twelve months, as reported by InvestingPro.

    The increase in Azure instances is noteworthy against the backdrop of concerns about capacity constraints potentially hindering growth. This surge is partly attributed to the launch of Microsoft’s Azure CPUs, which are estimated to have contributed 2.5% to the sequential growth and 2.8% to the year-on-year growth. Additionally, CPUs from Intel (NASDAQ:) and AMD (NASDAQ:) were significant contributors to this expansion. Collectively, these three sources accounted for 99.8% of the instance growth in the past quarter.

    KeyBanc’s analysis suggests that the substantial growth in Azure instances is predominantly driven by CPU-based services, which may indicate that AI-related capacity constraints have not been fully resolved. The report emphasizes that while the number of instances has increased notably, the growth in GPU availability, particularly for advanced applications, may still be limited.

    The firm remains optimistic about non-AI Azure revenue, projecting a $250 million increase over consensus estimates for Azure revenue in the second fiscal quarter of 2025. This optimism is rooted in the stronger performance of non-AI Azure services compared to AI-related revenues. The data points to a robust increase in instances towards the end of the previous year, mainly from Intel, AMD, and in-house CPUs, while the GPU segment might still face sourcing challenges. With Microsoft’s upcoming earnings report just 5 days away, InvestingPro subscribers can access 15+ additional exclusive insights and a comprehensive Pro Research Report that provides deep-dive analysis of Microsoft’s financial health and growth prospects.

    In other recent news, Microsoft and Kopin Corp have been the focus of recent developments in the tech industry. UBS analysts suggest a modest improvement in cloud infrastructure spending, with Microsoft poised to benefit significantly from the ongoing shift from on-premise systems to cloud services. However, UBS anticipates limited immediate upside for Azure, Microsoft’s cloud service. Meanwhile, Kopin Corp has expressed interest in the U.S. Army’s recompetition process for Microsoft’s Integrated Visual Augmentation System (IVAS) production contract, which has led to a Buy rating from Lake Street Capital Markets analyst.

    Microsoft also announced the immediate resignation of Christopher D. Young, Executive Vice President of Business Development, Strategy, and Ventures. The company has not announced immediate changes to its executive team or business strategy following Young’s departure. Additionally, Microsoft stands to gain from the Stargate Project, an investment initiative aimed at expanding AI infrastructure in the United States, which is expected to invest up to $500 billion over the next four years.

    Moreover, a $100 billion joint venture in the AI sector has been announced, involving SoftBank (TYO:) Group Corp., OpenAI, and Oracle Corp (NYSE:). The venture aims to fund AI infrastructure, with a goal to raise funding to at least $500 billion. Microsoft Corp ., and Nvidia Corp . (NASDAQ:), among others, will provide technology support for this venture. These are recent developments in the tech industry.

    This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.





    KeyBanc maintains $575 target on Microsoft stock post-analysis

    KeyBanc has reiterated its target price of $575 on Microsoft stock following a thorough analysis of the company’s financials and market conditions. The firm believes that Microsoft’s strong performance in cloud computing and software services will continue to drive growth in the coming quarters.

    The tech giant has been a standout performer in the technology sector, with its Azure cloud platform and Office 365 suite of productivity tools leading the way. Microsoft’s recent acquisition of LinkedIn has also been seen as a strategic move to further strengthen its position in the market.

    KeyBanc’s target price of $575 represents a significant upside potential from Microsoft’s current trading price, indicating that the firm remains bullish on the stock’s long-term prospects. Investors who are looking for a solid tech investment may want to consider adding Microsoft to their portfolio based on KeyBanc’s analysis and target price.

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  • Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?


    Meta Platforms META is set to release its fourth-quarter earnings on Jan. 29. Here’s Morningstar’s take on what to look for in Metas’s earnings and stock.

    Key Morningstar Metrics for Meta

    Earnings Release Date

    • Wednesday, Jan. 29, 2025, after the close of trading

    What to Watch for in Meta’s Q4 Earnings

    • GenAI monetization. Last quarter, we got some useful commentary on how GenAI stands to improve ad targeting and content creation. More commentary on this would be instructive as we consider future ad growth.
    • Capex plans: With the fourth-quarter earnings, we will get a better sense of how the firm is thinking about capex going forward. This is useful as we think about the firm’s cash flow generation and future margins.
    • Content moderation: We want to see how management is thinking about changes in its content moderation policy. These two factors could protect margins as elevated capex (and subsequent depreciation of AI servers) puts pressure on margins. Relatedly, we want to see how management is thinking about the European regulators, and how the firm’s new moderation policies may not comply with the EU’s Digital Services Act. The firm will likely require substantial US government support as it figures out a working arrangement with European regulators.
    • Workforce cuts: We are looking for commentary on whether the 5% workforce reduction is a first step in more reductions as the firm shaves off fat from its organization and uses AI tools to replace certain roles.

    Fair Value Estimate for Meta

    With its 3-star rating, we believe Meta’s stock is fairly valued compared with our long-term fair value estimate of $560 per share, which represents an enterprise value of 13 times our 2024 adjusted EBITDA projection.

    We forecast Meta’s sales growing at a 12% compound annual growth rate for the next five years, spearheaded primarily by an increase in average revenue per user, with user growth also chipping in.

    While we expect advertising sales from North America and Europe to grow steadily, we believe increasingly affluent and growing middle classes in Asia, Africa, and the Middle East will allow Meta to improve its ad monetization in those regions, lifting its overall top line.

    Read more about Meta Platforms’ fair value estimate.

    Economic Moat Rating

    We believe Meta merits a wide economic moat rating due to its intangible assets and the potent network effect around its family of apps. While the firm’s Reality Labs segment continues to hemorrhage cash, we believe the FoA’s strong competitive advantages will likely allow the firm to generate returns over its cost of capital over the next two decades.

    Meta’s FoA segment includes revenue from its social media applications including Facebook, Instagram, WhatsApp, and Messenger. The firm’s dominance in social media is evidenced by its four primary applications constituting four of the six most popular social media applications globally. Also, Meta’s scale in the social media business is staggering. Almost 4 billion people use at least one of its applications every month. According to various estimates, a little more than 5 billion people worldwide have access to the internet, implying that around 75% of them use Meta’s applications.

    The vast majority of this massive base uses these applications free of charge. Instead of paying Meta a subscription fee, they constitute an audience it can advertise to. Meta can accumulate user data, such as demographic information, likes/dislikes, and topics of interest, to feed into its advertising engine, which lets advertisers target ads on Meta’s properties.

    Read more about Meta Platforms’ economic moat.

    Financial Strength

    We view Meta’s financial position as rock solid. The firm closed out fiscal 2023 with cash and cash equivalents of $65 billion, more than offsetting its debt balance of $18 billion.

    While the firm’s investments in AI stand to increase its capital expenditure considerably over the next few years, the firm’s advertising business remains a cash-generating machine, churning out tens of billions of dollars of free cash flow on an annual cadence.

    Read more about Meta Platforms’ financial strength.

    Risk and Uncertainty

    We assign Meta an Uncertainty Rating of High. We believe Meta’s investments in unprofitable ventures such as generative AI and Reality Labs add a layer of uncertainty around its business, even as its large and stable advertising business continues to generate substantial cash flows in our forecast.

    As we look ahead, we believe Meta’s considerable scale and intangible assets, such as its ad-targeting algorithms, will most likely enable the firm to maintain its dominance in the social media application space. While there are antitrust concerns around Meta’s business, with US antitrust regulators pursuing a monopoly case against the firm, we view an often-hypothesized breakup of Meta’s applications into separate businesses as unlikely.

    Read more about Metas Platforms’ risk and uncertainty.

    META Bulls Say

    • Meta’s core advertising business has benefited greatly through improved ad targeting and content recommendation algorithms as well as a secular increase in digital advertising spending.
    • Meta’s scale, with the majority of the world’s internet-connected users accessing its applications, lets it access high-quality user data, which the firm can package and sell to advertisers.
    • The firm has an opportunity to drive more ad inventory growth, leveraging new products such as Threads while improving its monetization of ads on more nascent features such as Stories and Reels.

    META Bears Say

    • Meta’s investments in Reality Labs and generative AI stand to lose the firm billions of dollars annually, taking some of the shine off its overall business.
    • The firm has a monopoly case against it in the United States, which could potentially force it to break up, severing some of the scale advantages it has built up over time.
    • Meta has disproportionately benefited from increased ad spending by Chinese retailers like Temu and Shein. A slowdown in spending by these firms could hit Meta’s growth.

    This article was compiled by Aman Dagra.



    With Meta Platforms, Inc. (formerly known as Facebook) set to report its quarterly earnings soon, investors are wondering whether the stock is a buy, a sell, or fairly valued.

    Meta has been facing challenges recently, with regulatory scrutiny, privacy concerns, and competition from other social media platforms. However, the company still has a strong user base and a dominant position in the digital advertising market.

    Analysts are divided on the stock, with some seeing potential for growth in the metaverse and virtual reality, while others are concerned about the company’s ability to navigate the changing regulatory landscape.

    Ultimately, whether Meta is a buy, a sell, or fairly valued will depend on your own investment thesis and risk tolerance. It’s always important to do your own research and consider your own financial goals before making any investment decisions.

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    #Earnings #Meta #Stock #Buy #Sell #Valued

  • Analyst revisits Meta stock price target as Zuckerberg drops bombshell


    Meta Platforms shares nudged higher in early Friday trading following a bullish outlook on the social media giant from a top Wall Street analyst who sees the stock as one of his favorite picks heading into the new year.

    Facebook and Instagram parent Meta  (META)  was one of the top-performing Magnificent 7 stocks last year, rising more than 66% and adding more than $630 billion in market value as its family of apps saw solid user growth and ad sales powered higher amid a resurgence in global online spending.

    Related: Veteran trader who forecast Rocket Lab’s rally reboots stock price target

    Investors are also betting that Meta’s nascent push into AI technologies and the hardware and products it will improve will drive early bottom-line growth and offset the “significant increase in capital spending forecast by CEO Mark Zuckerberg.

    In fact, in an early Friday Facebook post, Zuckerberg said that Meta would likely spend between $60 billion and $65 billion on capital projects this year, a $32 billion increase from 2024 levels and well ahead of the Street’s consensus forecast of around $51 billion.

    Meta CEO Mark Zuckerberg said his social media giant will likely spend between $60 billion and $65 billion on capital projects this year.Bloomberg/Getty Images
    Meta CEO Mark Zuckerberg said his social media giant will likely spend between $60 billion and $65 billion on capital projects this year.Bloomberg/Getty Images

    “I expect Meta AI will be the leading assistant serving more than 1 billion people, Llama 4 will become the leading state of the art model,” Zuckerberg said. “This is a massive effort, and over the coming years it will drive our core products and business, unlock historic innovation, and extend American technology leadership.”

    Trust analyst Youssef Squali, who reiterated his ‘buy” rating and $700 price target on Meta in a note published Friday, sees Zuckerberg’s AI focus as already helping its ad sales momentum.

    “Meta’s AI investments are driving better ranking and recommendation results for users and advertisers, fueling sustained ad spending, especially across CPG and upper and middle funnels,” Squali said. “We also see potential contribution from AI agents and AR/VR products over time.”

    Related: Meta Platforms leaked emails reveal fierce AI rivalry

    Meta will also likely benefit from the uncertainty surrounding the future of ByteDance-owned TikTok, the short-video sharing app that Congress forced to sell its U.S. assets or shut down operations in its most important market.

    President Donald Trump gave the group a 75-day reprieve to find a U.S.-based buyer. Still, Meta is already moving quickly to bring some of TikTok’s 170 million users over to its Instagram reels, and other short-form video offerings on its platform.



    In a shocking turn of events, Facebook CEO Mark Zuckerberg dropped a bombshell announcement that has sent shockwaves through the tech industry. As a result, analysts are revisiting their Meta stock price targets to account for the potential impact of this bombshell.

    Stay tuned for more updates on this developing story. #Meta #Facebook #MarkZuckerberg #StockPrice #Analyst #TechIndustry

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