Stock recap and outlook for E.V. Stocks, AI etc.
Stock recap
WEEKLY STOCKS RECAP
IN EV SPACE
The Tesla Cybertruck
After an interview at the DealBook Summit in New York, Tesla Inc (NASDAQ:TSLA) CEO Elon Musk revealed details of the company’s long-awaited Cybertruck electric pickup in Austin, Texas on Thursday.
At an earlier event, Musk said, “It will be the biggest product launch of anything by far on Earth this year.”
Musk told the crowd, “What we have here is a better truck than a truck, while also being a better sports car than a sports car in the same package.”
Musk claims the new Cybertruck is unbreakable, “rock proof” and can pull 11,000 pounds. A “super-tough” 6ft composite bed and 2.6 seconds to 0-60 mph characterize the electric truck.
Musk boasted the Cybertruck will “change the look of the roads.” Also, the “future finally looks like the future.”
The Tesla CEO did not discuss Cybertruck cost or battery range. The company’s website lists the rear-wheel drive base model EV truck at $60,990, the “Cyberbeast” version at $99,990, and the all-wheel drive version at $79,900.
The all-wheel-drive variant and Cyberbeast will start deliveries in 2024. Base model deliveries should commence in 2025.
TSLA shares rose 6.29% to $238.83/sh this week after touching $252.12/sh on Wednesday.
China November deliveries
Nio Inc (NYSE:NIO), Li Auto Inc (NASDAQ:LI), and Xpeng Inc (NYSE:XPEV) published their November delivery numbers. LI led with over 41k units.
While dominating November last year by 172.9%, LI reached 325,677 deliveries year-to-date, exceeding its 2023 target of 300,000 vehicles one month early.
XPeng delivered 20,041 Smart EVs in November, a 245% increase from last year and its second straight month of 20,000 or more.
After 10 months of sustained monthly growth, XPeng has delivered 121,486 vehicles, exceeding 2022’s total.
Nio Inc. delivered 15,959 vehicles, up 12.6% from last year.
These deliveries included 10,545 premium smart electric SUVs and 5,414 sedans. By November 30, 2023, NIO has delivered 431,582 automobiles.
Nio also revealed this week that they are working with Zhejiang Geely Holding Group to enhance its battery-swapping technology.
Geely and Nio will collaborate using a “co-investment, co-construction, shared, co-operative” model.
LI and XPEV fell 9.57% and 11.16% this week. The week finished 1.65% lower for NIO. 4.3% below NIO’s Wednesday weekly high of $7.47/sh.
Rivian begins leasing
Rivian Automotive Inc (NASDAQ:RIVN) began leasing its R1T electric pickup trucks on Monday, competing with Tesla’s Cybertruck unveiled later that week.
Customers in California, New York, Florida, and Texas can lease the R1T.
The EV automaker boosted its production forecast for the year by 2,000 vehicles to 54,000 due to strong demand earlier this month.
The week finished with RIVN shares up 10.5%.
In AI
On their earnings calls, these firms talked the most about AI.
DealHub examined the most recent two earnings calls from over 200 notable firms, identifying the top ten companies that are actively discussing AI in the context of sales.
The list of companies includes Broadcom (NASDAQ: NASDAQ:AVGO), AMD (NYSE: NASDAQ:AMD), NVIDIA (NASDAQ: NASDAQ:NVDA), Thomson Reuters (NYSE: NYSE:TRI), Intuit (NASDAQ: NASDAQ:INTU), Salesforce (NYSE: NYSE:CRM), Alphabet (NASDAQ: NASDAQ:GOOGL), S&P Global (NASDAQ: SPGI), NetEase (NASDAQ: NASDAQ:NTES), and Adobe (NASDAQ: NASDAQ:ADBE).
“The data reveals intriguing insights into the companies that are experimenting with AI in the realm of sales,” said Gideon Thomas, Chief Marketing Officer at DealHub, in response to the findings.
“As the domain of artificial intelligence evolves, we recognize that the need to feed the AI with error-free price quote information becomes exponentially more critical.”
Broadcom’s AI ambitions have been boosted, as has the VMware deal.
Wall Street analysts are upping their price estimates on Broadcom shares after the chipmaker announced the completion of its acquisition of VMware. According to BofA Securities, AVGO’s “strongest, most attractive opportunity” in genAI and custom silicon persists, and AI is expected to drive $8 billion in sales in FY24E.
Analysts at BofA Securities commented on the AI transaction’s completion:
“Our first take estimate is around 2.3% and 7.3% pf-EPS accretion in FY24/25E, with upside to 10%+ accretion and $60+ in pf-EPS power for AVGO in CY25E if it’s able to realize planned synergies and/or delever faster than assumed.”
At TD Cowen, DigitalBridge is one of the best stocks to own.
TD Cowen analysts named Digitalbridge Group Inc (NYSE:DBRG) as one of their best ideas for 2024. DigitalBridge Group was singled out by analysts as a specialist investment manager with a high-quality portfolio of running companies. They stressed the company’s singular focus on Digital Infrastructure, which includes Data Centers, Towers, Small Cells, and Fiber.
“Given the meaningful re-rating in data center demand driven by AI, the technical competency of its portfolio companies, coupled with a robust co-investment program, we believe DBRG is well positioned to benefit from capital inflows into the data center sector,” said TD Cowen, which rates the stock as Outperform and has a $20 per share price target.
UiPath is up after reporting profits.
UiPath Inc (NYSE:PATH) stock jumped on Friday as analysts raised their price targets for the robotic process automation software business after its third-quarter results exceeded expectations.
Analysts at BofA Securities increased their price objective by $4 to $26 per share.
“We expect to see a healthy reacceleration in key growth metrics such as ARR and NRR (net revenue retention), in Q1 when we reach easier comparisons in the small business segment,” the analysts said.
Elastic’s financial performance is boosted by AI demand.
Elastic (NYSE:ESTC) N.V. shares soared on Friday after the business reported second-quarter earnings that exceeded expectations, prompting the application software company to improve its full-year projection.
Analysts cited Elastic’s impressive cloud growth performance as a noteworthy element in the report, leading to the positive market reaction and boosted confidence in the company’s direction.
Analysts at Oppenheimer emphasized the AI strength.
“We believe Elastic can maintain its momentum as it assists customers in consolidating observability and security spend and as GenAI adoption grows, driving upgrades to higher price tiers and supporting consumption growth, as well as a longer-term rebound in NRR.” Overall, we remain bullish on Elastic and believe it is well-positioned to capitalize on the GenAI opportunity,” analysts wrote in a note.
Major Earning next week
December 4, Monday
GitLab (NASDAQ:GTLB)
GitLab Inc. (GTLB) will release its Q3 results after the market closes on Monday. With the stock up 10% this year, Seeking Alpha’s Quant Rating methodology indicates a Hold due to valuation concerns. This differs from Wall Street analysts’ Buy rating.
Raymond James graded the stock Market Perform, noting potential market enthusiasm and growth in fiscal 2025 due to a huge total addressable market, healthy customers, and a value offer favoring consolidation over fragmentation.
However, Cantor Fitzgerald initiated coverage with an Overweight rating and a $55 price target, expecting product consolidation and generative AI benefits.
The consensus EPS estimate: -$0.01
Revenue consensus: $141.04M
In 8 consecutive quarters, GitLab has exceeded EPS and revenue estimates.
December 5, Tuesday
NIO
NIO (NIO) will report Q3 earnings before the bell on Tuesday. The Wall Street consensus is Buy, while Seeking Alpha’s Quant Ratings rate the company Hold owing to profitability and value issues.
On Friday, the EV producer reported November deliveries of 15,959 units, up 12.6% Y/Y but down 1% M/M.
According to SA Investing Group head Stone Fox Capital, NIO’s stock has fallen below $8 due to variable monthly delivery statistics and irregular EV deliveries. Stone Fox Capital observed that the 10% personnel cut raises worries for Q4 despite a record electric vehicle deliveries in Q3. The analyst expects the stock will double to $16 from its 2023 lows.
The consensus EPS estimate: -$0.23
Revenue consensus: $2.66B
Insight: NIO has missed EPS and sales predictions in 8 quarters and 50% of those quarters.
Wednesday, Dec. 6
GameStop (GME)
GameStop (GME) will report Q3 earnings after the bell on Wednesday. Analysts predict Y/Y losses to decrease with flat sales.
Due to meme stock volatility, GameStop stock has risen almost 20% in the past five days. Jonathan Krinsky, BTIG technical strategist, attributed this rise to fresh purchasing enthusiasm.
Wall Street analysts favor selling GME shares, while Seeking Alpha’s Quant rating is Hold.
Josh Arnold of Seeking Alpha writes, “GameStop faces fundamental headwinds, including poor margins and declining sales, making it a structurally unprofitable company.”
The consensus EPS estimate: -$0.08
Revenue consensus: $1.18B
Results: GameStop has surpassed EPS and revenue estimates in only 3 and 5 of the past 8 quarters, respectively.
Thursday, Dec. 7
DOCUSign
DocuSign (DOCU) will report its Q3 results on Thursday after the close. After exceeding expectations in Q2, the business forecasted Q3 revenue to $687M to $691M and raised its full-year sales guidance to $2.73B to $2.74B from $2.71B to $2.73B.
Seeking Alpha author DocuSign’s net dollar retention rate and top-line growth are falling, according to Asian Investor. As shares have typically been volatile after earnings, the analyst suggested a dip below 100% could prompt a negative stock catalyst.
Seeking Alpha’s Quant Rating methodology recommends buying the stock, but Wall Street analysts are holding it.
Consensus EPS: $0.63
Revenue consensus: $690.12M
Insight: The company has outperformed EPS and revenue projections in 7 of the past 8 quarters.
Broadcom (AVGO)
Broadcom (AVGO) will report Q4 numbers after Thursday’s close. The California semiconductor company’s stock have risen over 67% this year due to the AI wave. This increase exceeds the market, demonstrating the company’s endurance in the current economic context.
Broadcom revealed plans to lay off 1,300 California-based VMware employees on Friday after completing its multi-billion-dollar acquisition of VMware on November 22. This was a major step in its $61B cash-and-stock diversification strategy from chips to the cloud.
On Wednesday, Broadcom (AVGO) was reported to be considering strategic options for VMware’s End-User Computing and Carbon Black cybersecurity operations.
Buy is the consensus among sell-side analysts, while Seeking Alpha’s Quant Rating system moved to Strong Buy from Hold in mid-November.
With a strong semiconductor product range and technical experience, SA columnist Mike Zaccardi believes Broadcom offers tech and AI exposure at a reduced price. Earnings beat history, solid spending control, and sustained profitability make it an attractive investment, he said.
EPS consensus: $10.96
Revenue consensus: $9.28B
Broadcom has outperformed EPS and revenue projections for 8 quarters.
Friday, Dec. 8
Hello Group (NASDAQ:MOMO)
Hello Group (NASDAQ:MOMO) will report Q3 earnings before the bell on Friday. After strong Q2, the company expected revenues to fall 10.3% to 7.2% Y/Y in Q3.
Just days before earnings, Seeking Alpha’s Quant Ratings recommended Hold. Wall Street analysts rate the stock Buy.
Seeking Alpha author Individual Trader says MOMO’s recent downturn may be ending, indicating a bottom. The expert said that its low earnings and strong dividend yield make it an attractive investment.
Analysts predict $0.35 EPS.
Revenue consensus: $413.43M
In 7 of the past 8 quarters, the company has beaten EPS and revenue projections.
WEEKLY EARNINGS CALENDAR
Monday DEC 4
GitLab (GTLB) Science Applications (SAIC)
Tuesday, DEC 5
Autozone (AZO) AeroVironment (AVAV) America’s Car-Mart (CRMT) Asana (ASAN) Box (BOX) Core & Main (CNM) Dave & Buster’s (PLAY) Ferguson FERG (G-III) Apparel (GIII) MongoDB (MDB) Phreesia (PHR) SentinelOne (S) Signet Jewelers (SIG) Stitch Fix (SFIX) Toll Brothers (TOL) Yext (YEXT)
Wednesday, Dec 06
Brown-Forman (BF.B) C3.ai (AI) Campbell Soup ChargePoint (CHPT) Chewy (CHWY) Descartes (DSGX) GameStop (GME) Greif (GEF) Ollie’s Bargain outlet (OLLI) Oxford Industries (OXM) Semtech (SMTC) Sportsman’s Warehouse (SPWH) Thor Industries (THO) United Natural Foods (UNFI) Veeva Systems (VEEV) Verint Systems (VRNT)
Thursday, Dec 07
Broadcom (AVGO), Lululemon Athletica (LULU), BRP (DOOO), Ciena (CIEN), Cooper (COOP), DocuSign (DOCU), Dollar General (DG), GMS (GMS), Smith & Wesson Brands (SWBI), Vail Resorts (MTN).
Friday, Dec 08
Hello Group (MOMO), Johnson Outdoors (JOUT), Canadian Western Bank (OTCPK:CBWBF).
For Details
Must read book about investing – check here
stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock recap stock