Walmart Earnings: Holiday Shopping Is Off to a Strong Start

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Walmart said U.S. sales rose during the most recent quarter, propelled by shoppers buying groceries, home goods and toys — a sign that spending is off to a steady start this holiday season. The retail giant raised its sales and profit estimates for the year. The results were better than analysts expected, and Walmart shares rose about 3% in Tuesday’s trading. Walmart executives said they are watching potential policy moves by the incoming Trump administration, particularly on import taxes. The retailer said it is importing some products early in case of new tariffs or potential port strikes in January. The Results Sales: U.S. comparable sales, those from stores and digital channels in operation for at least 12 months, rose 5.3% for the quarter ended Oct. 25, driven by broad demand for its goods and market share gains across economic groups, including higher-income households. Analysts were expecting about 3.9% growth, according […]

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Chip Stocks Have Tumbled. Time to Buy.

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Semiconductor stocks have gotten hit too hard. The time has come to jump in and buy. The VanEck Semiconductor Exchange-Traded Fund has fallen 14% to $241 from the record high it hit in mid July, while the S&P 500 has kept on rising. Now, much of the risk that demand for chips could be hurt as a result is reflected in the stocks’ prices. The ETF is trading close to the range of about $215 to $240 where it has found support all year. Investors keep buying the stocks, recognizing that chip makers’ profits earnings are likely to continue to rise over the long term. Chip stocks are “oversold,” wrote Jeff deGraaf, head of technical research at Renaissance Macro Research, in a note on Monday. The semiconductor ETF now trades at 26 times the earnings per share analysts expect the fund’s companies to deliver over the coming 12 months. That

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TSMC’s American Fabs Could Dilute Its Margin Long Term

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TSMC’s American fabs could dilute its margin, but the Taiwanese contract chipmaker will likely pass on the costs, Morgan Stanley analysts say. The $6.6 billion award under the Chips Act to TSMC Arizona was confirmed last week, and the first of the company’s three facilities is on track to fully open in early 2025. “We see this as a confirmation, instead of more aggressive node migration in the U.S.,” the analysts say in a note. TSMC could produce the A16 node in the U.S. by 2030, after the A14, its most advanced node, is produced first in Taiwan in 2028 or 2029, they say. While the analysts expect long-term margin dilution from the U.S. fabs, they believe TSMC’s stock could rerate because the award was confirmed before Donald Trump took office and the chip maker can adjust future wafer prices to pass on the higher costs. Shares are last at

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Tesla to Fare Well Despite Trump Plan to Eliminate EV Tax Credit, Wedbush Says

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Tesla (TSLA) should perform well despite President-elect Donald Trump’s plan to discontinue the $7,500 consumer tax credit for electric vehicles, Wedbush said in a note to investors. Removing the incentive would particularly hurt General Motors (GM), Ford (F), Stellantis (STLA) and Rivian (RIVN), but Tesla’s “unmatched” scale and scope would allow it to use the lack of a tax credit to outmatch Detroit competitors, Wedbush said. Other incentives and programs could still support US-built EVs, Wedbush said, adding that Tesla Chief Executive Elon Musk will “have a big seat at the table as these EV discussions happen within the Trump transition team.” Wedbush maintained its outperform rating and $400 share price target on Tesla stock.

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Starbucks Has Opportunity to Re-Accelerate US Business, RBC Says

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Starbucks (SBUX) has a “meaningful” opportunity to re-accelerate its US business after recent headwinds, RBC Capital Markets said in a note to clients emailed Friday. “Amidst macro [and] idiosyncratic headwinds, the US business has been challenged in FY24 which we believe is an opportunity as the new CEO Brian Niccols adjusts the strategy of the business,” the note said. Starbucks can improve factors like “wait times” as well as the “value proposition on both pricing and customer experience,” RBC said. “Ongoing throughput investments can be increasingly impactful; we like the implementation of a 4-minute wait time given the focus on customer experience,” the note said. “And incremental investments, while margin dilutive in the [near term,] could reaccelerate traffic which is critical for the stock to work.” Meanwhile, in China, even amid a challenging macro scenario, the company may see a rebound due to factors like “increasing urbanization,” the “rise of

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ASML’s Confirmation of Long-Term Guidance Is Positiv

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ASML Holding made no changes to its 2030 sales and margin targets in a good development for the stock, J.P. Morgan analysts write in a note to clients. The Dutch semiconductor-equipment maker is still expecting sales of roughly 44 billion to 60 billion euros in 2030 and a gross margin of about 56% to 60%. The analysts say they weren’t expecting a guidance upgrade since ASML cut its 2025 forecasts only last month. The lack of surprises is good for the company, they add. ASML shares trade 4% higher at 652.80 euros.

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ASML Shares Rise as Chip-equipment Maker Confirms 2030 Outlook

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ASML Holding shares (NL:ASML) rose 3% as the Dutch microchip equipment maker reiterated its 2030 goal of annual revenue between approximately EUR44 billion and EUR60 billion with a gross margin of between approximately 56% and 60%?. “We expect that our ability to scale EUV technology into the next decade and extend our versatile holistic lithography portfolio, positions ASML well to contribute to, and leverage the Artificial Intelligence (AI) opportunity, and allows ASML to deliver significant revenue and profitability growth,” says President and CEO Christophe Fouquet. It’s expecting global semiconductor sales to reach over $1 trillion by 2030, which translates into an annual semiconductor market growth rate of approximately 9% in the period 2025-2030.

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Spotify Technology S.A. (SPOT) Q3 2024 Earnings Call Transcript Summary

/ / Consumer Discretionary /

summary of the Spotify Technology S.A. (SPOT) Q3 2024 Earnings Call Transcript: Financial Performance: Spotify reported strong quarterly results with a 21% year-on-year growth in total revenue reaching EUR 4 billion. Premium revenue rose 24% year-on-year on a constant-currency basis, driven by subscriber growth and ARPU acceleration from price increases. Gross margin reached a record 31.1%, surpassing guidance by 90 basis points due to favorable content costs. Operating income reached a new record of EUR 454 million, driven by gross profit strength. Record free cash flow of EUR 711 million for the quarter, supported by improved operating income and net working capital favorability. Business Progress: Added 6 million net subscribers, reaching a total of 252 million, and MAUs grew by 14 million to 640 million, both surpassing guidance. Launch of new subscription tiers and expansion into audiobooks in Europe, alongside the advancement of video content on the platform. Forward-looking plans

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Spotify Technology Q3 Diluted Earnings, Revenue Increase; Q4 Guidance Set — Shares Rise

/ / Consumer Discretionary /

Spotify Technology (SPOT) reported Q3 diluted earnings late Tuesday of 1.45 euro ($1.54) per share, up from 0.33 euro a year earlier. Analysts polled by Capital IQ expected earnings of 1.67 euros per share. Revenue for the quarter ended Sept. 30 was 3.99 billion euros, up from 3.36 billion euros a year earlier. Analysts surveyed by Capital IQ expected 4.03 billion euros. Spotify said it had 640 million total monthly active users in Q3, up 11% year over year. The company said it expects Q4 revenue of 4.1 billion euros. Analysts polled by Capital IQ expect 4.26 billion euro. Shares of the company were up more than 7% in recent after-hours activity.

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Wells Fargo’s ‘Focus List’ – GOOGL, TJX, XOM, JPM

/ / Financials /

Wells Fargo Investment Institute analysts updated their “focus list” of stocks. These stocks represent the top picks from Global Investment Strategy and Global Securities Research analysis that are expected to exceed the total return of the S&P 500 (SP500) over the next 12 months. Here is the list: Communication services Alphabet (GOOGL) – Consensus next 12 months EPS: $8.61; EPS long-term growth estimate: 13% Meta Platforms (META) – Consensus next 12 months EPS: $24.35; EPS long-term growth estimate: 13% Netflix (NFLX) – Consensus next 12 months EPS: $22.77; EPS long-term growth estimate: 31% T-Mobile (TMUS) – Consensus next 12 months EPS: $10.41; EPS long-term growth estimate: 14% Consumer discretionary Amazon (AMZN) – Consensus next 12 months EPS: $5.85; EPS long-term growth estimate: 25% Hilton Worldwide Holdings (HLT) – Consensus next 12 months EPS: $7.65; EPS long-term growth estimate: 8% The TJX Companies (TJX) – Consensus next 12 months EPS: $4.32;

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Qualcomm Earnings Could Be Overshadowed by These 2 Worries

/ / Technology /

Qualcomm has seen a recovery in its smartphone chip business, and it’s looking to keep up that momentum when it reports its fiscal fourth-quarter results on Wednesday after the close. The company also has two diversification efforts that can drive results in the future. But there are clouds hanging over the proceedings. Analysts are projecting 14% revenue growth on the year to $9.9 billion. Adjusted earnings per share is seen at $2.56, up 27%. Over the past 10 quarters, Qualcomm has beaten sales and EPS estimates eight times. The consensus estimate for first-quarter guidance is $10.6 billion in sales, and EPS of $2.86. Qualcomm’s core market is smartphone chips, which comprise 65% of total revenue in the past year. Analysts see smartphone sales at $6.1 billion, up 12% on the year, similar to last quarter. The last three quarters have shown recovery in this cyclical segment, and Wall Street expects

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