Hotter than expected inflation report Thursday afternoon caused yields to increase, given that the Federal bank might not be cutting rates as soon as markets previously expected. This general negative trend has rendered investor sentiment from positive to mildly negative, as major indices fell.
Meta Platform’s recent performance (up 39.8% ytd), can also be linked to the house approval of a bill that might ban TikTok in the United States. Another bullish factor is Morgan Stanley’s recent analysis, which confirms that Meta is the Internet Coverage company with the highest potential amongst its peers.
However, there might still be hope for the Chinese social media, given that the bill approved by the house of representatives forced the app to either stop operating in the US, or be sold. Former Treasury Secretary Steven Mnuchin has stated that he’s putting together a group of investors to acquire the application from its Chinese owners. This would allow the app to operate in the US.
B of A (Bank of America) raised portfolio holding IBM’s (IBM) (Purchased 0.1693 units @ $151.04) price target to $220 compared to $200 before. This shift in price target came due to underappreciated AI capabilities, good dividend yield and a strong portfolio. The software and hardware company has rallied 18.31% year to date, and we expect it to continue its run.
Author: Stefano Rizzi