Technology

Salesforce Ends Deal Talks With Informatica

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Salesforce is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. Merger talks with data-management software provider Informatica ended after the companies couldn’t agree on terms, The Wall Street Journal reported, according to people familiar with the matter. Meanwhile, Salesforce called for companies to provide disclosures about the environmental impact of AI development and operations. Dow Jones & Co. owns Factiva.

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What Apple Investors Should Make of Stock’s ‘Tricky Setup’ Ahead of Earnings

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By Emily Bary Investors don’t necessarily need to ‘step in front of’ earnings, but BofA says they could buy any pullback ahead of ‘biggest WWDC ever’ Apple Inc. is expected to beat expectations for its March quarter but deliver disappointing guidance for the June quarter, according to a Morgan Stanley analyst. That prospect already seems priced into Apple’s stock (AAPL), Morgan Stanley’s Erik Woodring wrote in a note to clients Monday, but he nonetheless sees a “tricky setup” in light of recent market volatility. See also: Some Apple Vision Pro users suffer black eyes, headaches and neck pain Apple shares have fallen 14% over the past three months, and sentiment has gotten more negative. Investors are looking ahead to the company’s WWDC event in June that’s expected to bring an artificial-intelligence announcement. “As a result, there’s a chance Apple could see a relief rally/squeeze higher on a ‘better-than-feared’ earnings report/guide,”

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Microsoft Growth to Be Driven by Expanding AI Spending, Morgan Stanley Says

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Microsoft (MSFT) will be a major beneficiary of incremental AI spending, according to a survey of chief information officers cited by Morgan Stanley in a Friday note. Morgan Stanley continues to see opportunity in Microsoft despite investor impatience with its topline results. “We continue to see room for further expansion,” according to the note. Particularly promising are Microsoft’s Azure, with the survey indicating that a net 39% of chief information officers expect to see Microsoft as the top AI budget share winner in 2024, Morgan Stanley added. Microsoft’s 365 Copilot is projected to contribute $5 billion to revenue in fiscal 2025, Morgan Stanley estimates, and $23 billion by fiscal 2029. While upcoming Q3 results will give investors some key data points on Azure growth, the other aspects of the Generative AI impact on Microsoft need several more business cycles. Still, Morgan Stanley sees Microsoft “positioned to sustain a 14% five-year

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Texas Instruments Poised for In-Line Q1 Results, Q2 Outlook, Oppenheimer Says

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Texas Instruments (TXN) is expected to post in-line Q1 results and Q2 guidance amid mixed demand signals, Oppenheimer said in a note e-mailed Friday. The semiconductor maker is scheduled to report Q1 results Tuesday. Oppenheimer projects earnings at $1.06 per share, while sales are expected to drop 18% year-over-year to $3.60 billion. “Led by a seasoned [management] team, TXN looks well-positioned for long-term analog competitiveness in core auto/industrial end-markets,” Oppenheimer analysts Rick Schafer, Wei Mok and Dustin Fowler said. “We see [gross margin] remaining under pressure from a combination of underutilization, increased depreciation, and aggressive pricing in China.”

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Meta Likely to Report Modest Q1 Upside, BofA Says

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Meta Platforms (META) will likely deliver a modest upside against consensus estimates when it reports its Q1 results on April 24, BofA Securities said in a note Friday. BofA expects Q1 EPS of $4.48 on revenue of $36.4 billion, compared with Street estimates of $4.33 on $36.2 billion revenue. It also forecasts ad revenue rising 26% to $35.5 billion from a year ago, above estimates at $35.4 billion. BofA analyst Justin Post also pointed to “some sentiment risk” on a year on year deceleration in the company’s Q2 revenue outlook because Q1 had benefits from favorable January comps, the Leap Year, Easter and forex effects. “We remain positive on Meta and reiterate our thesis that Reels, Messaging, and AI driven ad improvements are still early, and could lead to positive product surprises & revenue momentum in 2024,” Post said. “Moreover, with a large capex budget, internal AI supercomputer, inhouse LLM

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Microsoft, Amazon, Google’s Cloud Infrastructure Spending Stable, Might Beat Expectations, UBS Says

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Microsoft (MSFT), Amazon (AMZN), and Alphabet’s (GOOG, GOOGL) respective cloud infrastructure spending appears to be stable and there is a chance of slight outperformance compared to forecasts, UBS said in a note Thursday. However, there is no clear sign of significant cyclical improvement in cloud spending, so rapid growth in the near term seems unlikely, analysts, including Karl Keirstead, said. The analysts said discussions with customers and partners indicated that major AWS and Azure partners expect growth to rebound. However, customers remain focused on controlling costs due to a challenging economic outlook. The feedback on cloud spend optimizations was a bit disappointing, they said, adding that Microsoft Azure seems to be gaining share, while the feedback on Google Cloud was more muted than usual. “In our view, Street expectations for AWS, Microsoft Azure, and Google Cloud growth appear to be in a good place, with a strong potential for modest

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Nvidia Stock Could See 81% Upside By 2025, Says Evercore ISI: ‘Only In The Beginning Phases Of Generating Outsized Returns’

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NVIDIA Corp (NASDAQ:NVDA) has the potential to see its stock price surge by 81% in the next year, according to a recent note by Evercore ISI. What Happened: Evercore ISI initiated Nvidia with an “Outperform” rating and set a price target of $1,160, representing a 36% potential upside from the current levels, reported Business Insider. In a bullish scenario, the firm suggested that the stock could potentially reach $1,540, an 81% increase from the current levels. The note highlighted Nvidia’s position as a leader in the AI ecosystem, a role that is expected to drive efficiency gains for years to come. Evercore ISI’s Mark Lipacis believes that Nvidia’s AI ecosystem play could capture 80% of the value created during its respective computing era, with the potential to dominate the parallel processing market by 2030, a market that could be worth more than $350 billion. “We think investors underestimate 1) the importance of the chip+hardware+software

Nvidia Stock Could See 81% Upside By 2025, Says Evercore ISI: ‘Only In The Beginning Phases Of Generating Outsized Returns’ Read Post »

Alphabet’s Q1 Revenue Likely to Top Street View, BofA Securities Says

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Alphabet’s (GOOG, GOOGL) Q1 revenue is likely to beat Street view, with upside driven by search stability, its YouTube platform, and the benefit from the leap year, BofA Securities said in a Thursday note. The company is set to release its Q1 results on April 25 and BofA Securities said positive factors for this period include search upside, the integration of search generative experience into its search function, the impact of shorts on YouTube traffic and revenue growth, and higher margins from cloud strength. BofA Securities also flagged potential risks to the company’s results such as growing expenditures for new generative artificial intelligence investments, the impact of the Digital Markets Act, and slowing search growth. BofA Securities maintained its buy rating on Alphabet with a price target of $173.

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Oracle Likely to Be Good EPS Growth Compounder Through Fiscal 2026 Guidance Execution, Oppenheimer Says

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Oracle’s (ORCL) execution on medium-term guidance likely will set up the company to be a good earnings per share and cash generation growth compounder, Oppenheimer said in an emailed note to clients Thursday. The company’s fiscal year 2026 financial targets include accelerating revenue growth and operating margins returning to best-in-class among enterprise software companies at 45%, according to the note. Oppenheimer sees Oracle “as a long-term beneficiary of the software industry secular trends,” which include digital transformation, generative AI and other developments, “driving revenue growth and operating leverage.” Oppenheimer initiated its coverage on Oracle at perform rating.

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Apple Hopes To Sell More Vision Pros To Corporate Customers

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Apple is looking to a crop of enterprise customers, including retailer Lowe’s and software maker SAP, to showcase the Vision Pro’s usefulness to corporate buyers, and justify its $3,500 price. Though adoption by a wide business audience remains tricky. Cisco built an app for the “mixed-reality” headset, but says it only selectively handed out a small number of headsets inside the company. “It’s not like every desk at Cisco has a Vision Pro,” said Jeetu Patel, general manager of Cisco’s security and collaboration products.

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ASML Reports EUR5.3 Billion Total Net Sales and EUR1.2 Billion Net Income in Q1 2024

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ASML reports EUR5.3 billion total net sales and EUR1.2 billion net income in Q1 2024 2024 outlook unchanged VELDHOVEN, the Netherlands, April 17, 2024 — Today, ASML Holding NV (ASML) has published its 2024 first-quarter results. — Q1 total net sales of EUR5.3 billion, gross margin of 51.0%, net income of EUR1.2 billion — Quarterly net bookings in Q1 of EUR3.6 billion2 of which EUR656 million is EUV — ASML expects Q2 2024 total net sales between EUR5.7 billion and EUR6.2 billion, and a gross margin between 50% and 51% — ASML expects 2024 total net sales to be similar to 2023 (Figures in millions of euros unless otherwise indicated) Q4 2023 Q1 2024 ————————————– ——- ——- Total net sales 7,237 5,290 …of which Installed Base Management sales(1) 1,555 1,324 New lithography systems sold (units) 113 66 Used lithography systems sold (units) 11 4 Net bookings(2) 9,186 3,611 Gross profit

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