Stock recap
Stock recap
Stock recap
WEEKLY STOCKS RECAP
This week in EVs
Musk’s AI demand
Tesla Inc (NASDAQ:TSLA) CEO Elon Musk made waves this week on social media platform X (previously Twitter), saying he is “uncomfortable” with extending Tesla’s involvement in AI and robots without 25% voting control. Musk, who owns 13% of Tesla, wants influence without control. He suggested a dual-class share structure, but Tesla’s IPO raised concerns.
Musk’s 2022 Tesla share sell to finance his $44 billion Twitter acquisition complicates his control quest. If he doesn’t get the stake, the CEO may pursue goods outside Tesla.
Tesla updated its electric vehicle driving-range estimations in response to a new U.S. rule. Tesla’s website updates show model revisions, supporting the government’s drive for realistic real-world performance depiction. Minor alterations to major ones include the Model S Plaid’s projected range reducing from 396 to 359 miles.
This week, Tesla’s China section announced a nationwide Cybertruck pickup trip. Musk stated on the X platform that the business may send Cybertruck prototypes to China for display, noting the obstacles of making the vehicle road-legal.
On Friday, TSLA shares fell 5.15% for the week.
BYD seeks Indonesia
China’s BYD Co Ltd Class A (SZ:002594), the world’s largest electric vehicle maker, is targeting Southeast Asia.
BYD sold 3.02 million electric vehicles in 2023, largely in China, surpassing Tesla in the fourth quarter. Affordable models and strategic connections with local distributors have helped the company succeed in Southeast Asia.
In Indonesia, Southeast Asia’s largest economy, BYD launched three battery electric vehicle models to lead the market. BYD adds the Dolphin hatchback, Atto 3 SUV, and Seal sedan to its roster of Indonesian-partnered electric buses and taxis.
BYD’s Thai distributor, Rever Automotive, wants to increase its dealerships in two years to strengthen its position. By 2025, 200 showrooms will be open and commercial and new passenger automobile offers will expand.
Thailand is BYD’s largest overseas market, accounting for 20% of sales in Q3. BYD’s $504 million investment in a new Thai manufacturing, opening this year, shows its commitment to the booming Thai market.
VinFast is ambitious.
VinFast Auto (NASDAQ:VFS) struggled to deliver 40,000 electric automobiles in 2023. The business blamed poor EV adoption in some countries, tough competition, and an uncertain economy for the shortfall.
Even if VinFast missed the objective, deliveries rose 35% to 13,513 units in the fourth quarter of 2023. Deputy CEO of Sales Tran Mai Hoa acknowledged the tough market but noted the fourth-quarter car delivery surge.
VinFast did not break down market-specific sales, although 60% of second- and third-quarter deliveries went to Green SM (GSM), an affiliate. VinFast CEO Pham Nhat Vuong owns most of GSM, a Vietnamese cab operator and leasing supplier.
VinFast wants to build manufacturing and battery facilities in India despite delivery issues. The company also wants to expand into Indonesia and other Middle Eastern, Latin American, and Asian regions.
VFS closed Friday up 6.66% for the week.
AI moves
Bank of America upgrades Apple
AI and Vision Pro products may help Apple Inc (NASDAQ:AAPL), according to Bank of America analysts. Analysts also expect negative EPS estimate revisions to end.
Thus, the analysts upgraded AAPL shares to Buy from Neutral and set a $225 price objective.
IBM rises at Evercore ISI
IBM shares was upgraded to Outperform by Evercore ISI analysts.
“We think as Enterprises look to deploy AI tools to enhance productivity – the process will be complicated and messy, and we think data security and not running enterprise data on public LLM models will be a key focus – IBM with their unique set of consulting and software assets can help solve this bottleneck and enable enterprise customers to deploy AI tools on and off premise more seamlessly,” analysts
IBM shares now have a $200 price objective.
Analysts still adore chipmakers.
Citi analysts named Marvell Technology Inc (NASDAQ:MRVL) Top Pick due to AI tailwinds.
Analysts stated AI optics growth, custom ASIC AI project sales, and bottoming out of non-cloud markets including enterprise networking and carrier will support the stock setup in 2024.
Goldman Sachs also reaffirmed Broadcom Inc (NASDAQ:AVGO) as Buy. Hari anticipates “strong double-digit revenue growth in the company’s AI-related businesses (i.e. high-speed Networking and custom compute).”
Other analysts at Canaccord Genuity raised their Qualcomm Incorporated (NASDAQ:QCOM) price objective.
“We anticipate reaccelerating revenue and EPS growth in F2024 and F2025 with on-device generative AI, a strong product roadmap, cost discipline, and Android smartphone inventory levels.”
Dell can grow—Bernstein
Bernstein still likes Dell Technologies Inc (NYSE:DELL) despite its 62% relative outperformance in 2023. Analysts maintained Outperform and a $90 price target.
We consider Dell a best-in-class operator due to its direct distribution model, scale, corporate ties, and excellent free cash flow conversion.
AI servers are a key incremental revenue opportunity for Dell, says the analyst. We expect Dell to grow $3B+ in incremental YoY AI servers if current order activity continues over the next two quarters.
Baidu ‘best AI play in China’ Morgan Stanley
In a sluggish macro environment for the fourth quarter, Morgan Stanley analysts expect Baidu Inc (NASDAQ:BIDU) core revenue to rise 7% and advertisements to rise 6%.
AI-boosted cloud growth is predicted to reach 10% YoY. Analysts expect rigorous cost management to boost core non-GAAP operating profit 10% YoY and stabilize margins.
WEEKLY EARNINGS CALENDAR
Monday, JAN 22
United Airlines
Tuesday, JAN 23
GE, JNJ, Procter & Gamble, Verizon, 3M, CN Rail, Netflix, Baker Hughes
Wednesday, JAN 24
AT&T, Tesla, IBM
Thursday Jan 25
Dow Chemical, Southwest Airlines, Alaska Airlines, Intel, Visa, T-Mobile
Friday, JAN 26
American Express, Norfolk Southern
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