Category: Portfolio Management

April 4th, 2024 - Stocks tumbled on Thursday in a session of volatile trading ahead of the March jobs report. The Dow Jones lost 530.16 points, 1.35%, to close at 38,596.98, suffering its worst session since March 2023. The S&P 500 dropped 1.23% to end at 5,147.21 and Nasdaq dipped 1.40% to close at 16,049.08. Levi Strauss (LEVI) stock jumped over 20% on Thursday after the company reported solid first quarter results and enjoys added exposure through a new Beyonce song. The results came in with a revenue of $1.56 billion against an estimate of $1.55 billion and adjusted earnings per share resulting at $0.26 versus an analyst estimate of $0.21. At the end of the day the growth settled at 12.38%. Shares of Conagra Brands (CAG) closed on Thursday…

03 April 2024- At a conference held by Stanford University in California, Jerome Powell commented on the current stance of the US economy and he answered some questions. Recently, the data on job gains and inflation came higher than expected, when commenting on this data, Jerome Powell said that it doesn’t change the big picture which is solid growth but a rebalancing labor market. Powell also said they have to step back and watch for the upcoming data to see if recent data is just a ‘bump’ on their way to the 2% inflation target. Powell again cited that seeing rate cuts is appropriate at some point this year. However, Atlanta Fed president Raphael Bostic had more hawkish comments about the current situation. He thinks that one cut might be…

April 2nd, 2024 - General Electric (GE) recently terminated its break up process through which 3 different companies  were created (GE Healthcare, GE Aerospace and GE Vernova that came to life at the beginning of  2023). This huge operation was announced in late 2021, after GE saw its dimension increasing hugely  thanks to an important diversification strategy carried out before the beginning of the breaking up.  The latter was the culmination of a strategy aimed at helping GE facing the consequences of the 2008  global financial crisis that heavily affected GE Capital, the most relevant division of the company. GE  began trading as separate entities on Tuesday, with Larry Culp (CEO of GE Aerospace) and Scott Strazik  (CEO of GE Vernova) who rang the NYSE opening bell. Analysts currently estimate…

April 1st, 2024 - The upsurge in demand for energy to power data centers, therefore the amount of the latter required to fuel the ongoing AI revolution could lead to a “golden era” for natural gas, according to executives. Managers’ belief, strongly supported by data, is that renewable energy sources and batteries won’t be enough to cope with the soaring energy needs, and that fossil fuels will still play a crucial role in the energy landscape. The energy issue is widely controversial since the US Government is still providing incentives to developers of clean energy with the aim of bringing the carbon emissions of the electricity grid to zero; but at the same time, it looks like those won’t be able to bear the AI growing needs in the future…

30th March, 2024 - In the rocky start of 2024, Tesla, the electric car giant, had a big drop. Its stock fell almost 30%, making it the worst in the S&P 500 index. This was very different from the larger market's good rise, with the S&P 500 going up by 10.2%, its best in a first quarter since 2019. Tesla had three main problems: not great predictions, more issues in the big Chinese market, and a series of controversial moves by the company's CEO, Elon Musk. At first, things seemed good for Tesla as it said it had record-breaking sales in Q4, with 485,000 cars, and met its year-end goal for 2023 with 1.8 million cars. But the good feelings from this were soon gone when the company said it…

29th March, 2024 - As we announced recently in our article on the 26th of March, Apple (AAPL) (Purchased 0.6 units @ $183.96) is struggling to keep its position in the Chinese market because of changes in the national macro environment and strong competition from Huawei. The Chinese networking and electronics company reported stellar results for 2023, registering its fastest growth in the last four years. Huawei struggled in recent years because of the U.S. government banning their products in 2019 after accusing the company of being a security risk. The company also suffered China’s strict regulation during the pandemic and the chip reserves crisis in 2021. In 2023 though, revenue rose 9.63% from a year earlier to 704.2 billion yuan ($97.48 billion), mostly thanks to the consumer segment, growing…

28th March, 2024 - The S&P 500 rose on Thursday registering its best first-quarter performance in five years, closing at 5,254.35 with a growth of 0.11%. The Dow Jones added 0.12% and finished at 39,807.37, while Nasdaq slipped 0.12% to end at 16,379.46. Reddit (RDDT) shares are plummeting after experiencing a rally stemming from the company’s IPO last week. Shares closed at $49.32, ending the week below their closing price on the first day of trading on the New York Stock Exchange as they closed at $50.44 last thursday. Reddit shares began their downward spiral on wednesday, when they sank about 11% to $57.75 at market close, on that day Hedgeye Risk Management described the stock as “grossly overvalued”. Walgreens Boots Alliance (WBA) did exceptionally well with its share price…

27 March, 2024 - H&M shares surged over 15% on Wednesday after the company reported better-than-expected first-quarter results. The reason for this impressive increase is a significant profit increase and a raised operating margin target. H&M's operating profit was announced at 2.08 billion Swedish Krona (~$196 million), higher than analyst predictions of 1.43 billion Swedish Krona (~$134.6 million). Operating margin rose to 3.9% from 1.3% showing they are on their way to their 10% operating margin target. These results came despite the decreasing sales from 54.9 billion kronor to 53.7 billion kronor year on year. According to J.P. Morgan's Natasha Kaneva, despite a dip in oil prices on Wednesday, the reduction in Russia's output by 471,000 barrels per day in the second quarter could be sending Brent crude toward the…

March 26th, 2024 - Portfolio holding Apple (AAPL) (0.6 units purchased @183.96) is facing a series of difficulties in China  due to changes in the national macro environment and the fierce competition by Huawei, factors that  caused a 24% drop in iPhone sales in the first six weeks of 2024. The Cupertino based  company is trying to overcome this negative period, with a high probability that it will double down  on the chinese smartphone market. What underlines this objective the most is the latest Tim Cook’s  trip to China, during which he not only opened Apple’s newest flagship store in Shanghai and met key  suppliers, but also joined the China Development Forum in Beijing. In addition to this, the Chinese  minister of commerce Wang Wentao stated that Apple’s presence in…

March 26th, 2024 - Reddit, the beloved social media platform, made headlines with a staggering 30% jump in its shares following its recent IPO; Debuting at $34, the stock closed at an impressive $59.80 on Monday, reflecting investors' fervent interest. Together with existing investors, Reddit raised around $750 million in the offering, marking a significant milestone for the company's financial trajectory. What sets Reddit's IPO apart is its inclusive approach, allowing moderators and users, affectionately known as “Redditors”, to participate alongside institutional investors: this novel strategy echoes successful models employed by industry giants like Airbnb and Rivian, fostering a stronger sense of community ownership and democratizing the access to investment opportunities. Early investors, such as Sam Altman, CEO of OpenAI, saw their stakes in Reddit skyrocket: Altman's investment surged from…