Spotify reported its first-quarter financial results, with analysts anticipating revenue of over $3.9 billion and earnings per share of 78 cents. The company has faced mixed revenue estimates in recent quarters. Analysts are focusing on potential price increases for subscribers as a catalyst for growth, along with the impact of artificial intelligence features and the success of Taylor Swift’s album on the platform.
Analyst Justin Post of BofA Securities upgraded his rating on Amazon.Com Inc (AMZN) to Buy and set a price target of $204. He anticipates positive earnings for Amazon’s first quarter, with revenue estimates of $143 billion, aligning with market expectations. Post highlights AWS and advertising as potential growth drivers and predicts a possible outperformance in the retail segment. The analyst also discusses Amazon’s strategic shifts and operational efficiencies, which he believes will support margin expansion and drive stock performance. Despite a forward P/S multiple increase year-to-date, Post notes that Amazon’s valuation remains below its ten-year average, suggesting potential for multiple expansion.
Overall consumer spending remains robust, with U.S. retail sales rebounding in February and March. This bodes well for payment network giants Visa and Mastercard, who are expected to report solid earnings growth for their latest quarters. Visa is projected to post non-GAAP EPS of $2.43 in Q2 of its fiscal 2024, while Mastercard is anticipated to report adjusted EPS of $3.24 in Q1.
Schlumberger N.V. (SLB) reported strong financial results for the first quarter of 2024. The company’s revenue grew 13% year-over-year to $8.707 billion, beating analysts’ estimates. Adjusted earnings per share (EPS) increased 19% to 75 cents, in line with expectations. Schlumberger’s growth was driven by international markets, with revenue increasing 18% in the Middle East & Asia and 18% in Europe & Africa. The company’s North American market revenue declined 6% year-over-year. SLB announced a quarterly cash dividend of 27.5 cents per share, payable on July 11, 2024.
Gilead Sciences (GILD) has been underperforming for a decade, but recent indicators suggest a potential bottom and opportunities for investors.
1. Dividend Yield: GILD offers a 4.61% dividend yield, comparable to the 10-Year Treasury, providing income potential with growth prospects.
2. Valuation: GILD trades at low earnings and revenue multiples compared to peers and the broader market.
3. Growth Prospects: While earnings are expected to decline moderately in FY2024, they are projected to rebound strongly in FY2025, driven by oncology and cell therapy growth.
4. HIV Leadership and Pipeline: Gilead maintains leadership in the HIV space and has a promising pipeline in oncology, cell therapy, and inflammatory diseases.
5. M&A: The recent acquisition of CymaBay Therapeutics adds to Gilead’s pipeline, but the high debt level may limit further M&A activity in the near term.
Conclusion: Gilead Sciences appears undervalued with a solid dividend yield and growth potential. Investors may consider covered call strategies to mitigate downside risk and enhance returns.
The Nasdaq has experienced a volatile week marked by earnings from major tech companies and concerns over chipmakers. Despite early gains, the index has traded flat, extending its six-day losing streak. Experts believe that the current correction is consistent with the pattern of bull markets, which typically involve steady gains interrupted by sharp declines. They remain optimistic that the market is still in a bull market Despite the bearish sentiment. Additionally, the rise in Treasury yields is seen as a challenge for tech stocks. The catalyst for tech’s recovery is likely to be a downturn in US economic data, particularly inflation.
Lucid Group (LCID) has received mixed analyst ratings, ranging from bearish to bullish. In the last 30 days, 5 analysts have rated the stock as indifferent, 2 as somewhat bearish, and 0 as bullish or somewhat bullish. The average 12-month price target is $3.63, with a high estimate of $4.50 and a low estimate of $2.90. Analysts have decreased the average price target by 34.0% from a month ago.
Verizon Communications (VZ) reported better-than-expected wireless subscriber additions and financial results in the first quarter of 2023. Despite losing 68,000 wireless subscribers, below analyst estimates, the company’s wireless service revenue grew 3.3% to $19.5 billion, driven by pricing adjustments and higher premium plans. Adjusted earnings per share (EPS) declined from $1.20 to $1.15, but surpassed expectations of $1.12. Total revenue increased slightly by 0.2% to $33 billion, shy of analyst expectations. Verizon remains optimistic about the future, expecting continued wireless service revenue growth and adjusted EPS within the range of $4.50 to $4.70.
