18Dec 2023 by Cattolica Investment Club No Comments

Meta’s resurgence: From struggle to soar in 2023

Daily in Portfolio Management
Dec 18th, 2023 - In 2022, Meta faced a crisis, with its stock at a six-year low, declining sales, and challenges from TikTok. However, 2023 marked a significant turnaround, with Meta shares surging by 178%, poised to become its best year on record. The change is thanks to the CEO Zuckerberg's new strategies, including substantial cost-cutting measures such as the reduction of over 20,000 jobs.  After three quarters of declining sales in 2022, Meta experienced a remarkable 23% growth in the third quarter of 2023, due to the recovery of digital advertising and the capture of market share from rivals like Alphabet. The main drivers of the impressive recovery of the tech giant are two: the “change of attitude” of Zuckerberg, and Chinese advertisers support. The CEO’s shift in approach…
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17Dec 2023 by Cattolica Investment Club No Comments

Fed holds rates again, market surges and broadcom shines

Daily in Portfolio Management
Dec 17th, 2023 - In a resolute move, the Federal Reserve has maintained its interest rates for the third consecutive meeting, with Chairman Jerome Powell indicating that the benchmark rate is likely peaking for this tightening cycle. Presently, the rates stand at their highest since 2001, fluctuating between 5.25% and 5.50%. Powell anticipates a shift in 2024, hinting at three potential rate cuts, with more expected in 2025 and 2026. This announcement was well-taken by the US stock indices, marking their seventh consecutive week of gains. The S&P 500 closed at its highest since January 2022, Dow Jones has reached for the first time the milestone of 37000, and NASDAQ was nearly 8% away from its all-time high. After the FED’s meeting, interest rate sensitive indices outperformed the S&P 500.…
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16Dec 2023 by Cattolica Investment Club No Comments
AI’s Impact on Employment: Evolving Work Dynamics and Human-Centered Approaches

AI’s Impact on Employment: Evolving Work Dynamics and Human-Centered Approaches

Daily in Portfolio Management
Dec 16th, 2023 - Recent statistics suggest a surge in AI-driven layoffs, with 37% of surveyed businesses reporting AI replacing workers in 2023 and 44% projecting future job cuts due to AI efficiency in 2024. However, this article aims to explore beyond headline figures, acknowledging discrepancies in technological adoption among businesses and underscoring the transformative potential of AI in reshaping job roles and organizational structures. Experts suggested avoiding direct alarmist interpretations of these statistics. Julia Toothacre from ResumeBuilder highlights the disparity in technology adoption among businesses, noting that smaller and traditional enterprises might not fully embrace AI. Moreover, insights from Alex Hood at Asana underscore the considerable amount of time spent on non-core work activities, suggesting that AI's capacity to streamline such tasks could lead to productivity enhancements. The concept…
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15Dec 2023 by Cattolica Investment Club No Comments

S&P 500 LOSES GROUND AND INTEL LAUNCHES A NEW GENERATIVE AI CHIP: GAUDI3

Daily in Portfolio Management
Dec 15th, 2023 - Friday’s indices performances: Nasdaq closed at 14813.92 (+0.35%), S&P 500 at 4719.19 (-0.007%) and Dow Jones at 37305.16 (+0.15%).  Intel (46.16, +2.17%) unveiled its new computer chips on Thursday, including Gaudi3, a chip for Generative AI software. Intel will launch Gaudi3 next year and it will compete with NVIDIA’s and AMD’s chipset and Intel is hoping with this new product to gain an important market share in the Generative AI sector, that for now has been dominated by NVIDIA.  Colgate-Palmolive’s rating has been upgraded by Bank of America to buy from neutral, and its target price increased from $75 to $90. To motivate their choice, analysts said: “In our view, CL holds potential to grow above its long-term targets over the next 12 months, which should…
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15Dec 2023 by Cattolica Investment Club No Comments
The automotive market and the shift towards Electric Vehicles

The automotive market and the shift towards Electric Vehicles

Markets
The automotive industry, a business sector involving the design, production, marketing, and sale of automobiles; has been an important contributor to the European economy in terms of economic growth, innovation, and prosperity for decades. It accounts for almost 7 percent of the region’s GDP and is both directly and indirectly responsible for employing almost 14 million people. However, this status quo has recently been challenged as the industry is experiencing profound innovations such as the advent of electric vehicles (EVs), smart technologies, and globalized supply chains. In fact, from a market initially characterized by traditional manufacturing practices and internal combustion engine dominance, the industry has witnessed a paradigm shift towards innovation, sustainability, and advanced technologies. This dynamic has opened the doors for new competitors both in Europe and internationally. Notably,…
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14Dec 2023 by Cattolica Investment Club No Comments

Stocks rise as investors brace for peak season

Daily in Portfolio Management
Dec 14th, 2023 - The Dow Jones closed higher on Thursday at 54.23 with a growth of 0.43%. The S&P also grew, closing at 4,719.55 adding 0,26%, while the Nasdaq gained 0.19% to 14,761.56. GM’s stock (GM) jumped 5% after the announcement that Cruise is laying off 900 employees, about 24% of its workforce. The layoff consists mostly of commercial operations and related corporate functions. It comes as a consequence of the October 2nd accident, when a pedestrian was dragged 20 feet by a Cruise self-driving car after being hit by another vehicle. The layoff came just one day after the Cruise dismissed nine “key leaders” and will resize the company from the 3800 employees it had before Thursday’s cut. The stock closed the day at 36.25 with a growth…
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13Dec 2023 by Cattolica Investment Club No Comments

Indices jump on dovish statements from the Fed

Daily in Portfolio Management
Dec 13th, 2023 - On Wednesday, the Dow Jones increased by 1.4%, closing at 370,090.24. The S&P 500 increased by 1.37%, closing at 4,707.09. Also, the Nasdaq had an increase of 1.38%, closing at 14,733.96. All of them hit their 52-week highs. The Federal Reserve held the rates steady as expected. For the first time, the Fed admitted that inflation has eased over the past year and they also signaled upcoming rate cuts for 2024. Fed officials see core inflation falling to 3.2% in 2023 and 2.4% in 2024. The producer price index (which measures inflation before it reaches consumers), reported by the Labor Department, didn’t change from October to November. Tesla (TSLA) has announced that they are recalling 2 million of their vehicles in the US after a risk…
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12Dec 2023 by Cattolica Investment Club No Comments

Oracle’s negative results worry analysts, while Hasbro Job Cuts lead to a decrease in its stock price, whilst Google’s power is in danger

Daily in Portfolio Management
Dec 12th, 2023 - Today’s market performance of portfolio holding Oracle (ORCL) (0.4 units @111.10) was characterized by a huge sell-off, which caused a remarkable percentage decrease in the stock  price of -12.44%. This was mainly due to the negative reaction investors had in regards to Oracle’s results for the second quarter of its current fiscal year. Not only did sales for the period largely miss the target set by analysts by around $110 million, but revenue from key sectors like cloud services and license support also rose only by 12%, compared with the same period of the previous fiscal year. The latter is a very important factor to consider, taking into account that market operators are worried that Oracle will not be able to continue competing with the main…
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11Dec 2023 by Cattolica Investment Club No Comments

Macy’s shares surge after acquisition bid of $5.8 Billion

Daily in Portfolio Management
Dec 11th, 2023 - The real-estate investment firm “Arkhouse Management” and the asset manager “Brigade Capital Management” have jointly proposed a $5.8 billion acquisition of Macy’s; neither the two key investors nor Macy’s have publicly commented yet, the news comes from the Wall Street Journal, which reported it first. The offer, valuing Macy’s shares at $21 per share, represents a premium over the closing price of just $17 a share on Friday, although the stock had seen a significant decline, around 17%, from the beginning of 2023. The well known American department store chain is facing many challenges in competing with online retailers: Macy’s has made several efforts to revitalize its brick-and-mortar stores, including opening 30 new stores on strip mall locations, but hasn’t been able to take on e-commerce…
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