Buy Micron Stock, Analyst Says. It’s All About AI Server Demand.

/ / Technology /

Micron Technology is poised to become a winner from the rising demand for artificial-intelligence semiconductors, according to New Street Research. On Tuesday, analyst Pierre Ferragu reaffirmed a Buy rating on the stock and reiterated his $150 target price. He notes the memory outlook for datacenters for the second half of 2024 is “strong on all fronts with AI ramping and traditional server recovering,” and predicts Micron will keep beating expectations in the coming quarters. In early trading Tuesday, Micron stock rose 1.9% to $96.41. Ferragu estimates demand for memory in the AI server market will go up by 14 times over the next four years to $50 billion in 2027 from $3.5 billion in 2023. “Increasing HBM [high bandwidth memory] content in AI servers is a multiyear growth driver for memory,” he wrote. Micron is a leader in the markets for DRAM, which is used in desktop computers and servers, […]

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Justice Department Mulls Google Break-Up, Other Options After Court Ruling

/ / Technology /

The US Department of Justice is considering options such as a bid to break up Alphabet (GOOG, GOOGL) unit Google after a recent court ruling found that the technology giant monopolized the online search market, Bloomberg News reported Tuesday, citing people with knowledge of the deliberations. The company could be forced to share more data with competitors, with other possible options including steps to prevent it from gaining an unfair advantage in artificial intelligence products, the unnamed sources told the news outlet. If the DOJ proceeds with a breakup plan, the Android operating system and Google’s Chrome web browser could be the most likely units for divestment, the people reportedly said. Government officials are also considering forcing a sale of AdWords, one of the sources told Bloomberg. Earlier this month, a federal judge ruled that Alphabet operated an illegal monopoly and violated US antitrust laws by spending tens of billions

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Boeing’s Confidence in Starliner ‘Speaks Volumes,’ Says Former NASA Astronaut

/ / Industrials /

By James Rogers ‘These commercial companies cannot afford to have an accident because it could completely end their program,’ notes former astronaut Eileen Collins Boeing Co.’s confidence in the ability of its Starliner space capsule to bring NASA astronauts Butch Wilmore and Suni Williams back home to earth “speaks volumes” amid the uncertainty swirling around the troubled mission, according to former Space Shuttle commander Eileen Collins. There was a major twist in the Starliner saga last week when NASA discussed the possibility of bringing astronauts Wilmore and Williams back to Earth on a SpaceX Crew Dragon spacecraft. But in a statement released after NASA’s Aug. 7 press conference, Boeing (BA) said that Starliner could still bring Wilmore and Williams safely home. “Crew Flight Test is currently a crewed mission, and we still believe in Starliner’s capability and its flight rationale,” the company said. “If NASA decides to change the mission,

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Apple to See Higher iPhone 16 Shipments on AI-Driven Upgrade Cycle, Wedbush Says

/ / Technology /

Apple (AAPL) is expected to ship more iPhone 16 units than Wall Street originally estimated, with potentially more customers looking to upgrade due to the company’s artificial intelligence features, according to Wedbush Securities. The brokerage anticipates initial shipments of the upcoming model of the technology giant’s flagship product to be closer to over 90 million units, compared with the market’s forecast of 80 million to 84 million units, it said in a Sunday client note. Wedbush estimates that roughly 300 million iPhones worldwide have not been upgraded in over four years. “With anticipation from the Street and broader tech industry building for Apple’s iPhone 16 AI driven launch in September, our recent Asia checks this week are giving us more confidence this upgrade cycle will kick off a long awaited renaissance of growth for Cupertino over the next year,” analysts led by Daniel Ives wrote in the note. Wedbush maintained

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Chevron Corporation (CVX) Q2 2024 Earnings Call Transcript

/ / Energy /

Chevron Corporation (NYSE:CVX) Q2 2024 Earnings Conference Call August 2, 2024 11:00 AM ET Company Participants Jake Spiering – General Manager, Investor Relations Michael K. Wirth – Chairman of the Board and Chief Executive Officer Eimear P. Bonner – Vice President and Chief Financial Officer Conference Call Participants Neil Mehta – Goldman Sachs Alastair Syme – Citi Paul Cheng – Scotiabank Biraj Borkhataria – RBC Doug Leggate – Wolfe Research Josh Silverstein – UBS Roger Read – Wells Fargo Devin McDermott – Morgan Stanley Nitin Kumar – Mizuho Jason Gabelman – TD Cowen Bob Brackett – Bernstein Neal Dingmann – Truist Geoff Jay – Daniel Energy Partners Betty Jiang – Barclays John Royall – JPMorgan Operator Good morning. My name is Justin, and I will be your conference facilitator today. Welcome to Chevron’s Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After

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Caterpillar Lowers 2024 Outlook Amid Dealer Inventory, Construction Industry Pressures

/ / Industrials /

Caterpillar now expects 2024 revenue to be slightly lower than the $67.1 billion it saw in 2023, with the decline in the second half expected to be similar to the prior year. On an earnings call, CEO Jim Umpleby says this is in part due to its latest assumptions for dealer inventory, principally in resource industries, according to a transcript provided by FactSet. In North America, Caterpillar anticipates slightly lower construction industry sales for 2024 due to a weaker than expected rental fleet, though government-related infrastructure projects are expected to remain healthy, Umpleby says. Caterpillar gains 3.5% in early trading.

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Caterpillar Demonstrates Quality Attributes, Resilience Amid Macro Slowdown, BofA Says

/ / Industrials /

Caterpillar (CAT) demonstrated some quality attributes relative to other original equipment manufacturers with growth in adjusted operating profit amid a decline in sales, margin expansion despite destocking and negative dealer retailer sales, and pricing over cost, BofA Securities said in a note Wednesday. The firm said it still expects risks of an increase in destocking and construction industries’ pricing while the company maintains its earnings in a macroeconomic slowdown. Caterpillar reported Q2 adjusted earnings of $5.99 per diluted share, up from $5.55 a year earlier. Analysts polled by Capital IQ expected $5.54. Revenue for the quarter was $16.69 billion, above expectations of $16.67 billion. BofA said it is “too early to talk about ‘other side’” with price deflation, a decline in the non-residential construction sector and commodities under pressure. “Yet the longer Caterpillar demonstrates a higher/resilient earnings per share profile, the next cycle EPS power comes into focus,” the firm

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Caterpillar Is ‘Holding The Line’ On Earnings, Despite Macro Slowdown: Analyst Takeaways From Q2 Results

/ / Industrials /

Caterpillar Inc. (NYSE:CAT) shares are climbing on Wednesday, after the company reported strong second-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. BofA Securities On Caterpillar Analyst Michael Feniger reiterated a Buy rating while reducing the price target from $385 to $376. Caterpillar reported better-than-expected second-quarter results, “demonstrating a higher/resilient EPS profile in a gloomy macro,” Feniger said in a note. Adjusted earnings came in at $5.99 per share, beating consensus estimates of $5.53 per share, he added. “While CAT is still a cyclical OEM, we are observing some quality attributes relative to other OEMs and prior slowdowns,” the analyst wrote. He further stated that Caterpillar was “holding the line” on earnings, despite a macro slowdown. Truist Securities On Caterpillar Analyst Jamie Cook maintained a Buy rating while raising the price target from $390 to $399. Caterpillar exceeded consensus earnings by 8% “on

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Airbnb Warns of Slowdown in U.S. Demand Despite 2Q Revenue Growth

/ / Consumer Discretionary /

Airbnb said revenue rose in the second quarter as a result of holidays and events like the Olympics, but warned about a potential slowdown in demand among U.S. consumers in the current quarter. The San Francisco-based short-term rental company on Tuesday posted a net income of $555 million, or 86 cents a share, compared with $650 million, or 98 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 91 cents. Revenue rose 11% to $2.75 billion, beating the $2.74 billion expected by analysts. Airbnb had most recently said it expected revenue of $2.68 billion to $2.74 billion, representing growth of 8% to 10%. Gross booking value was up 11%, driven by a 9% increase in nights and experiences booked and a 2% rise in average rates. Wall Street analysts were also expecting growth of 11% in gross bookings. Airbnb

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Airbnb 3Q Outlook Impacted By Shortening Booking Windows

/ / Consumer Discretionary /

Airbnb’s 3Q outlook suggests booked nights growth lower than 2Q as travel demand in the US looks weak, according to BofA Securities in a research note. The analysts say that they’ve been cautious on a fading reopening benefit, as tough comparisons along with slowing long-term stays growth impacts bookings growth. They add that the home-sharing company also noted that shortening booking windows are impacting its 3Q outlook, leaving open a possibility of improving trends if US consumers end up booking late and maintaining relatively stable trip growth in September. Shares dive 15% to $111.57 in early trading, putting it on pace for its largest percentage decrease on record.

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Airbnb Reports ‘Tough’ Q2 Results Amid Slower Demand, Increased Marketing Expenses, RBC Says

/ / Consumer Discretionary /

Airbnb’s (ABNB) Q2 earnings performance was “tough” due to slower demand and increased marketing expenses, RBC Capital Markets said in a note Wednesday. “We believe the company is facing a textbook multiple compression situation driven by higher marketing spend into slowing demand,” RBC said in the note. Airbnb on Tuesday posted Q2 earnings of $0.86 per share on revenue of $2.75 billion. Analysts polled by Capital IQ expected EPS of $0.91 on revenue of $2.74 billion. Management’s focus on “product cycle opportunities as a way to reignite growth was constructive” and a significant opportunity could exist, RBC said. However, the “marketing to counter deceleration” tactic led to a lowering of estimates, the brokerage said. RBC cut its price target on Airbnb’s stock to $120 from $150 and maintained sector perform rating. Airbnb shares were down by nearly 13% in recent trading.

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Intel Calls Off Innovation Conference After Turbulent Two Weeks

/ / Technology /

Intel is canceling its Intel Innovation conference for the year after two weeks in the spotlight for all the wrong reasons. The chip giant’s stock plunged last week after its sales fell short of analyst expectations, and it said it planned to lay off about 15,000 employees. The company’s decision to replace the conference with “smaller, more targeted events” appears to be part of its urgent attempt to cut costs as Chief Executive Pat Gelsigner tries to right the ship.

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