Whales have been showing a bearish stance on Freeport-McMoRan (FCX) lately. Analyzing options trades over the past 30 days reveals that 81% of investors have opened bearish trades, indicating a negative sentiment. Projected price targets for FCX range from $48.0 to $60.0. Significant trades include a bullish put trade expiring on 05/17/24 with a strike price of $50.00 and a bearish call trade expiring on 04/26/24 with a strike price of $48.00.
Nvidia Corp and Advanced Micro Devices, Inc stocks witnessed a partial recovery on Monday following a significant selloff on Friday. Amidst concerns over the Federal Reserve’s interest rate hikes and geopolitical tensions, investors had grown wary of stocks that had previously benefited from the artificial intelligence boom. However, recent checks suggest that demand for AI-related products and services remains strong, with key players like Nvidia and AMD poised to benefit.
As the US government pushes for Chinese owner ByteDance to divest TikTok’s US operations, analysts identify Microsoft and Oracle as likely buyers. The updated House bill provides ByteDance with a one-year divestment period. Wedbush analysts suggest that private equity firms and consortiums, including those backed by former Treasury Secretary Steven Mnuchin, may also express interest in acquiring the asset. However, Wedbush emphasizes the uncertainty surrounding the potential sale due to the absence of TikTok’s algorithms and possible legal challenges from ByteDance.
Li Auto has once again reduced prices on its electric vehicles in China, leading to a decline in its share prices. The automaker lowered prices by 18,000 to 30,000 yuan on its L7, Li L8, Li L9, and Li MEGA models. Customers who bought these models earlier in the year will receive cash refunds. This move comes amidst increasing competition in the Chinese electric vehicle market, where manufacturers are aggressively pricing their vehicles to attract customers.
Good Morning Traders! Today’s Morning Memo analyzes key price levels for SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA, utilizing our proprietary formula that considers price, volume, and options flow. Stay alert and adjust your tactics as the market unfolds to optimize your trading gains. Remember, the Federal Reserve is in a quiet period until next Wednesday’s FOMC rate decision, so today’s market may be subdued.
Reliance Industries’ (RIL) Q4FY24 earnings brought mixed results. While revenue grew by 10.8% to ₹2,64,834 crore, profit after tax declined by a marginal 0.4% to ₹21,243 crore. Key highlights include double-digit growth in revenue, profit, and EBITDA for Jio Platforms, driven by subscriber growth and increased data and voice traffic. However, EBITDA margin for Jio Platforms slightly declined. The company witnessed strong contributions from O2C and consumer businesses, while the impact of lower refining margins was offset by higher chemical spreads.
Retail investors are increasingly utilizing demat accounts to diversify their portfolios and secure their financial futures. This shift is attributed to the accessibility and user-friendliness of mobile trading platforms, easy access to financial information, and regulatory efforts promoting stock market awareness. To maximize the benefits of long-term investing, investors should utilize their demat accounts to invest in a diversified portfolio, implement SIPs in mutual funds, adopt a buy-and-hold approach, stay updated with market trends, and regularly monitor their investment portfolios.
Wipro Limited (NYSE: WIT), a leading global information technology, consulting, and business process services company, has announced its financial results for the fourth quarter of fiscal year 2024.
In a conference call led by CEO Srinivas Pallia, the company reported a slight 0.1% sequential growth in IT services revenue for Q4, with large deal bookings of $1.2 billion. For the full year, Wipro achieved a revenue of $10.8 billion and expanded its margins to 16.1%. Despite a challenging macroeconomic environment, the company saw a 5.2% increase in net income and earnings per share (EPS) for the quarter, while full-year EPS grew by 0.8%.
Wipro’s cash flow was robust, with $626 million generated in Q4 and $2.1 billion for the full year. The company expects a sequential growth of -1.5% to +0.5% in constant currency for the first quarter of 2025, with IT Services business segment revenue projected to be between $2.617 billion and $2.670 billion.
Key Takeaways:
– Wipro’s IT services revenue grew marginally by 0.1% sequentially in Q4.
– The company booked large deals worth $1.2 billion and reported full-year revenue of $10.8 billion.
– Margins expanded to 16.1% for the full year, with a margin improvement of 235 basis points.
– Net income and EPS for Q4 increased by 5.2%, while full-year EPS grew by 0.8%.
– Cash flow was strong, with $626 million in Q4 and $2.1 billion for the full year.
– Wipro expects Q1 ’25 sequential growth of -1.5% to +0.5% in constant currency.
Company Outlook:
– Wipro anticipates Q1 2025 IT Services business segment revenues to range between $2.617 billion and $2.670 billion.
– The company remains cautious due to the overall demand environment and sector-specific softness.
– Focus areas include accelerating large deal momentum, simplifying the operating model, and leveraging Capco’s BFSI consulting capabilities.
Bearish Highlights
– Wipro faces challenges due to high discretionary spending in the BFSI sector.
– There is a weaker performance in the communications and high-tech sectors.
– The conversion of large deal total contract value to revenue is lower because of discretionary spending and slower buoyancy in smaller deals.
Bullish Highlights
– The company saw growth in the BFSI and healthcare sectors.
– Strategic acquisitions and the launch of the Wipro Enterprise Artificial Intelligence Ready Platform with IBM (NYSE: IBM) are expected to bolster business.
– Capco’s performance has shown an uptick, contributing to synergy wins and revenue acceleration.
Misses
– The company reported a marginal sequential growth in IT services revenue for Q4, reflecting a challenging macroeconomic climate.
Q&A Highlights
– Strategies to reduce churn levels include providing growth opportunities and focusing on internal talent development.
– Wipro aims to improve win rates by proactively creating pipelines and shaping deals specific to industries and clients.
– The company has generated 85% to 110% of free cash flow as a percentage of net income historically and aims to continue improving cash flow generation.
Bladex, the Latin American bank, reported a Q1 2024 net income of $51.3 million, a 39% increase from the previous year. The bank’s credit portfolio and deposits grew by 12% and 32%, respectively. Bladex is transitioning to the expansion phase of its strategic plan, which includes the selection of two key IT platforms to enhance its product suite. Despite increased expenses, the bank remains optimistic about continued growth in 2024 and beyond.
Bank of America predicts the Bank of Japan (BoJ) will maintain its current interest rate target range at 0-0.1% at its upcoming monetary policy meeting on April 26, 2024. The BoJ recently exited its negative interest rate policy and overhauled its monetary framework, and is now assessing the impact of these changes. Governor Ueda has indicated that the bank’s focus is on evaluating the effects of the recent policy modifications on the economy and inflation. The quarterly Outlook Report, Governor Ueda’s post-meeting press conference, and the Summary of Opinions are expected to provide clues about future rate hikes and adjustments to JGB purchases.
