Jan 26th, 2024 – On Friday, markets showed indecision, as the S&P 500 declined 0.07% to end the session at 4,890.97, ending its winning streak at six days. The Nasdaq declined 0.36% to 15,455.36 points, while the Dow Jones Industrial Average rose 0.16% to 38,109.43 points.
Tech stocks faced declines on Friday, and Intel suffered a significant setback, with its stock falling by almost 12% after posting a weak guidance for the first-quarter that was below expectation. The company decided to be cautious for two main reasons: its challenge in catching up to Nvidia in the AI chip-maker market and also a weak PC market.
Visa’s shares dipped 1.71% after the credit card giant reported a slight beat on Q1 earnings but failed to impress investors. Despite robust results (8% growth in payment volume and a 16% rebound in cross-border volume), the stock declined amid global economic concerns. Its rival, American Express, had strong earnings that may have contributed to this result. Q1 revenue reached $8.63 billion, exceeding expectations, with adjusted EPS at $2.41, surpassing consensus estimates. CEO Ryan McInerney expressed optimism about future opportunities. The stock still remains expensive, with a P/E ratio of 31, investors may find opportunities in the pullback, given Visa’s positive outlook as also said by Morningstar and its premium valuation.
Coinbase was up by 3% after the Investment Bank Oppenheimer upgraded the company to outperform, setting a price target of $160 per share, citing the platform’s strength. The crypto exchange shares were also up on Friday after Bitcoin went again over 41,000, gaining almost 5%. The analyst emphasizes stronger-than-expected earnings and improving fundamentals as key catalysts.
Author: Filippo Ferrero