Nasdaq Stocks

Note: Tapestry’s FY’23 ended July 1, 2023.

Intercontinental Exchange (NYSE: ICE) is scheduled to report its fiscal Q4 2023 results on Thursday, February 8, 2024. We expect Intercontinental Exchange to edge past the consensus estimates of revenues and earnings. The exchange posted mixed results in the last quarter,

Note: Ralph Lauren’s FY’23 ended on April 1, 2023                    

Chinese luxury electric vehicle maker Xpeng stock (NYSE:XPEV)  delivered 8,250 vehicles in January, up 58% year-on-year but down 59% from December. Growth was driven in part by the company’s new  X9 MPV, which began deliveries in January and the G6 Ultra

The cryptocurrency market started 2024 on a positive note after an impressive rally last year. The much-hyped reformation in the cryptocurrency space took place on Jan 10. The U.S. Securities and Exchange Commission (SEC) approved

The so-called Magnificent Seven have pulled the curtain on their earnings results. Though most Magnificent Seven members clocked in some magnificent quarters, there was one EV maker that delivered results that can only be described as less-than-magnificent. In any case, this piece will focus on a trio of Magnificent Seven members (META, AMZN, and MSFT) that stepped up to the plate and swung one out of the ballpark, sparking an impressive rally alongside a wave of analyst price target upgrades. Therefore, let's use TipRanks' Comparison Tool to check in with the three aforementioned stocks that delivered and could continue to do so in the year ahead, thanks in part to a bit of help from their growing stake in artificial intelligence (AI). Meta Platforms ( NASDAQ:META) Meta Platforms delivered the most impressive quarterly results this earnings season, sparking one of the biggest single-day rallies in the company's history. Undoubtedly, Meta stock's more than 20% surge represented the largest-ever single-day market cap gain of $204.5 billion. Put that one in the record books. With a fresh dividend, AI tailwinds at its back, and the wildcard of its Reality Labs business, many analysts on Wall Street see the red-hot stock climbing even higher as it enters its dividend-paying era. All things considered, I find it hard to be any less bullish following the latest spike. In fact, Morgan Stanley seems to think Meta is a stock to keep buying after its blowout earnings results. The company's new AI tools are just one of the drivers that has the bank staying bullish. In a prior piece, I highlighted the potential of ad automation tool Advantage+ and its ability to give the ad business a real shot in the arm. Just because Meta is maturing, with a dividend to pay (0.44% yield at writing), does not mean it's steering off the growth track. If anything, Meta may be the most exciting Magnificent Seven member, given how effectively Mark Zuckerberg and his team have turned a corner following its "Year of Efficiency." As the company moves into a year (or should I say decade) of AI, the stock certainly seems too cheap at 23.7 times forward price-to-earnings, far below most Magnificent Seven members. The lowest-hanging fruit may have been picked amid last year's efficiency push, but don't expect management to settle into cruise mode as it looks to pull ahead in the so-called AI race while keeping up with peers in the virtual- and augmented-reality scene. What Is the Price Target of META Stock? Meta stock is a Strong Buy, according to analysts, with 38 Buys, two Holds, and one Sell assigned in the past three months. The  average META stock price target of $522.00 implies 11.2% upside potential. Amazon ( NASDAQ:AMZN) Amazon stock has also been riding higher following its own slate of quarterly earnings results. The numbers were exceptional, helping power shares more than 7% higher in a single trading session. With new all-time highs in sight (around 8% away), plenty of AI rally fuel, and a strong holiday season in the books, analysts seem right on the money to stay bullish on the stock post-earnings. Like Meta, Amazon wants to equip advertisers with the right tools. With the firm launching new privacy tools in the European market while starting ads (and a paid option to eliminate them) on its streaming service Prime Video, it seems positioned to make a growing dent in the ad market. Indeed, Amazon's many Prime users will not be happy to have to view ads as they enjoy their paid Prime content. And though some may question the value proposition of being a Prime member (have the perks added up, or only the price hikes?), the consumer will speak with their money. For now, Prime looks sticky enough to not shed too many users due to the inclusion of ads on Prime Video. Combine AI tools with ads, and it's no mystery as to why RBC Capital views Amazon as one of its top tech picks (one of the others is Meta) to play the digital ad market in the new year. I think they're right to praise the company as it looks to go above and beyond just being an e-commerce and cloud retailer. What Is the Price Target of AMZN Stock? Amazon stock is a Strong Buy, according to analysts, with unanimous 40 Buys assigned in the past three months. The  average AMZN stock price target of $207.72 implies 21.8% upside potential. Microsoft ( NASDAQ:MSFT) Microsoft also stood tall following its earnings report, with investors impressed by the company's AI muscles. In many ways, Microsoft is still the AI stock to own for those who prefer to bet on software over hardware. While Microsoft is poised to gain some skin in the AI chip game, the company still remains a software titan that's likely to continue having its way with rivals. With a Super Bowl ad for its AI software CoPilot ready to go, it will be interesting to see where adoption of the Microsoft ecosystem goes from here as more are drawn in by its impressive AI capabilities. It's hard not to be bullish, even with shares at fresh highs and a trailing price-to-earnings multiple now well above 35 times. Apart from AI, Microsoft seems to be opening up its Xbox gaming ecosystem by sharing plans to bring its Xbox-exclusive games over to its rival console, PlayStation. Indeed, such a move could curb demand for its console while also dealing a heavy blow to the so-called "console wars." That said, by expanding the total addressable market for its games, I view the move as a net positive, even if it rubs some Xbox gamers the wrong way. If the friendly gesture is reciprocated by Sony (the firm behind PlayStation), the move could be a net positive for both console combatants as more emphasis is placed on growth in software. What Is the Price Target of MSFT Stock? Microsoft stock is a Strong Buy, according to analysts, with 32 Buys, one Hold, and one Sell assigned in the past three months. The  average MSFT stock price target of $469.45 implies 13.4% upside potential. The Takeaway The Magnificent Seven stocks could continue higher if they continue smashing quarterly earnings this year. Undoubtedly, AI could be the magic that helps them keep pulling rabbits out of hats come future earnings seasons. Of the trio, analysts see the most upside (21.8%) in AMZN stock. Disclosure 

Etsy ( NASDAQ:ETSY ) used to reliably deliver 30% year-over-year revenue growth and healthy profit margins. Investors can look back to its Q2-2019 earnings report for proof. Then, the pandemic brought the stock to new heights. Revenue more than doubled in some quarters, and earnings growth was even higher. Despite its pre-pandemic status as a growth stock and the lockdown-induced surge now over, shares are not undervalued, in my view, and I'll explain why. I'm bearish on ETSY stock. Why Some Bulls Believe Etsy Is Undervalued Most of the argument about Etsy being an undervalued stock is that the share price has fallen off a cliff. Shares are down by roughly 76% from their all-time highs. The company’s P/E ratio has been knocked down to 30, and the forward P/E ratio looks even more enticing, as it currently sits at 20. Etsy’s growth isn’t what it used to be, but it's still growing. Investors may feel optimistic about the stock’s 7% revenue growth rate in Q3 2023 and its 13.8% net profit margin. Revenue growth is a far cry from 2020 and even 2019, but it’s something.  Bullish investors may be eyeing Etsy’s all-time high and fantasizing about the returns they could generate if the stock reclaimed that price level. Not all stocks reclaim their all-time highs, though. Unraveling the Bullish Thesis The beatdown on ETSY stock has been constant since it peaked in November 2021. The stock has lost roughly half of its value over the past year and is down ~8% year-to-date. While a 20-forward P/E ratio looks good, a 6.6 five-year forward PEG ratio offers a better picture of the stock’s grim prospects.  While the P/E ratio only considers a stock’s price and earnings, the PEG ratio also factors in growth. A low growth rate results in an elevated PEG ratio. Investors who use this ratio believe a stock is undervalued if its PEG ratio is below 1.00. Regarding the PEG ratio, ETSY stock is in another stratosphere. Etsy will continue to fall unless it fixes one number in its financials -- gross merchandise sales. Revenue and net income growth do not matter if gross merchandise sales (GMS) remain flat. This metric represents Etsy’s ceiling. It’s the total buyer activity on the site, and Etsy makes a percentage of each sale. Below are two quick examples of the correlation between GMS and revenue growth: Q2 2019: GMS growth: 21.4% Revenue growth: 36.8% Q3 2020: GMS growth: 119.4% Revenue growth: 128.1% The common theme is that revenue growth is a bit higher than GMS growth. Revenue growth is higher because Etsy can squeeze more out of the lemon through opportunities like higher fees and advertising. Etsy’s GMS growth came in at 1.2% year-over-year and was flat on a currency-neutral basis. The business will stop growing if GMS stays flat, and there’s only so much Etsy can squeeze out of the lemon before buyers and sellers explore other choices to save money. Further, the company’s big acquisition of Elo7 did not bear fruit ( Etsy ended up selling Elo7), and leadership is citing challenging macroeconomic conditions to justify a sudden slowdown in GMS growth. However, I’m not convinced that macroeconomic conditions are a key factor. Many e-commerce corporations reported better financials, and the advertising industry has rebounded.  Comparing Etsy with Other Stocks Etsy also mentioned declining discretionary spending as a key issue that has halted GMS growth. However, Target ( NYSE:TGT ) has experienced the same issue with discretionary spending, and yet, it trades at an 18 P/E ratio, 15.5 forward P/E ratio, and a 1.07 PEG ratio.  Investors may also want to consider how Etsy compares with eBay ( NASDAQ:EBAY ). eBay followed a similar boom and bust cycle, but both parts of the cycle were less dramatic. eBay’s revenue growth has come to a mid-single-digit crawl, but at least that stock trades at an 8 P/E ratio and a 9.5 forward P/E ratio. Etsy’s valuation does not make sense when compared to Target and eBay, and these feel like appropriate comparisons, given Etsy’s meaningful revenue deceleration. Investors must be praying that an activist campaign can right the ship.  Is ETSY Stock a Buy, According to Analysts? Analysts are more generous than me. On TipRanks, ETSY stock comes in as a Moderate Buy based on 10 Buys, eight Holds, and two Sells assigned in the past three months. Moreover, the  average ETSY stock price target implies 13.1% upside potential. The lowest price target is $55, which seems like a more accurate indicator of where the stock is heading, in my opinion. The Bottom Line on ETSY Stock Revenue and earnings growth are not the company’s key indicators. It’s GMS growth or bust. If Etsy cannot nudge this number higher, it's very limited in how it can generate meaningful revenue and earnings growth. If GMS growth rebounds, the rest will follow. A stock well off its all-time high isn’t necessarily undervalued. While investors may think about pre-pandemic and pandemic growth rates, those days appear to be long gone. Investors have to look at the present situation rather than lean on past results.  Disclosure

Nvidia’s (NVDA) great run continues as the stock broke $700 yesterday.

Netflix stock ( NASDAQ:NFLX ) is reigning supreme in the steaming kingdom, with its most recent results showcasing sustained industry dominance. Boasting over 260 million paid members, the streaming giant keeps posting robust growth in revenues and earnings despite the industry suffering from oversaturation. In fact, improved profitability has enabled management to return significant capital to shareholders, boosting the stock's appeal. I believe this trend is set to be sustained. Thus, I am bullish on NFLX stock. Subscriber Growth Accelerates Against All Odds Netflix continues to astound with its remarkable ability to consistently attract paid subscribers, even with the fierce competition in the saturated streaming and social media landscape. In an era where tech and media giants fight for consumers' attention, the company's sustained subscriber growth is nothing short of astonishing. Think about this for a minute. The streaming and social media space is more saturated than ever, with numerous players battling for viewers' precious watch time. Initially, Netflix dominated the space, primarily facing off against outdated cable networks. However, the dynamics have shifted, and Netflix now contends with a multitude of streaming services, including Disney's ( NYSE:DIS ) Disney+, Amazon's ( NASDAQ:AMZN ) Prime Video Service, AT&T's ( NYSE:T ) HBO, Hulu, Peacock, and various smaller players. Moreover, Netflix faces competition in the "attention economy" from tech giants like Alphabet's ( NASDAQ:GOOGL ), YouTube, TikTok, and Meta Platforms' ( NASDAQ:META ) Reels. They all strive to capture market share in viewership to increase their advertising revenues. In fact, TikTok's and Reels' focus on promoting both short-form and long-form views and even producing shows on their own is proof of their competition with Netflix. Despite these challenges, Netflix maintains a robust subscriber base, and its paid subscriber growth has even accelerated in recent quarters, including in its latest Q4 results. To illustrate, here are Netflix's quarterly paid subscriber growth rates over the past two years. Q1 2022: 6.7% Q2 2022: 5.5% Q3 2022: 4.5% Q4 2022: 4.0% Q1 2023: 4.9% Q2 2023: 8.0% Q3 2023: 10.8% Q4 2023: 12.8% These figures vividly depict a moderation in paid subscriber acquisition throughout 2022, following the unprecedented surge in subscribers over the preceding two years. The widespread stay-at-home trend during the pandemic fueled remarkable growth in 2020 and 2021, with Netflix experiencing a remarkable 20%+ expansion in paid memberships during that period. Consequently, a deceleration in growth for the subsequent year, 2022, was predictable as the situation began to stabilize. However, as conditions normalized, subscriber growth rebounded significantly in 2023, showcasing a notable uptick quarter-over-quarter. The most recent quarter's growth of 12.8% is especially noteworthy, pushing Netflix's paid subscriber base to a staggering 260.3 million. Revenues & Earnings Surge, Outlook Appears Very Promising Powered by an acceleration in subscriber growth, revenue growth has also followed a similar trend. The same goes for earnings, as margins have been on the rise, with the income statement benefiting from improving unit economics. In the meantime, Netflix's outlook for the first quarter of 2024 suggests that this trend is set to persist. To illustrate, Netflix posted record revenues of $8.54 billion in Q4, a year-over-year increase of 12.5%. As you can see in the table below, revenue growth has also accelerated, in line with subscriber growth. Notably, this increase was the best for the company since Q4-2021's growth rate of 16%. Simultaneously, NFLX's operating margin jumped to 16.9%, notably higher than last year's 7.0%. This combo allowed net income and EPS to skyrocket to $938 million. Source: NFLX Q4-2023 Shareholder Letter Noteworthy is also the fact that Netflix's share count declined by 1.6% to 444.3 million, with management deploying just over $6.0 billion in buybacks in Fiscal 2023. While not a massive drop, management's clear intention to boost buybacks should translate to a gradually accretive effect on earnings per share, which is welcomed. But besides closing the year on a high note, investors were left particularly impressed with management's Q1-2024 outlook, which points to further acceleration in revenues and a significant expansion operating income margin expansion. In particular, revenues are expected to grow by 13.2%, while operating income margin is expected to reach 26.2%, implying a notable expansion from last year's 21% and last quarter's 16.9%. Is NFLX Stock a Buy, According to Analysts? Regarding Wall Street’s view on Netflix, the stock has drawn a Moderate Buy consensus rating based on 27 Buys, 13 Holds, and one Sell assigned in the past three months. At $574.01, the  average Netflix stock forecast implies 2.6% upside potential. If you’re wondering which analyst you should follow if you want to buy and sell NFLX stock, the most profitable analyst covering the stock (on a one-year timeframe) is Jason Helfstein from Oppenheimer, with an average return of 43.42% per rating and a 100% success rate. Click on the image below to learn more. The Takeaway Netflix's relentless dominance in the streaming realm remains impressive, defying industry saturation and intense competition. The recent acceleration in paid subscribers and surging revenues and earnings paint a promising outlook for the future. With prudent rising share buybacks and optimistic targets by management entering 2024, Netflix stock appears positioned for continued success in 2024. Disclosure

Lean hog futures tried to firm up after a weak start to the week, though prices faded into the close and ended mixed within 40c of UNHC. USDA’s National Average Base Hog price increased by 92 cents to $66.37. The CME Lean Hog Index for 2/2 was cited at $73.56,...

Soybean futures dropped double digits in the old crop contracts leaving the board sub-$12 for all but the July contract. New crop beans were also 6 ¾ cents lower on the day. Soymeal futures closed $6.20 to $7.60 weaker across the nearbys despite the solid export data. Soy oil futures...

Corn futures printed new lows on Wednesday and ended the session 3 ½ to 5 cent losses. After working to new LoC lows, the corn market has firmed up some into midday. Futures are still down by 2 ¾ to 4 cents for the day, with March 3c off the...

Front month fat cattle prices were 77c to $1.27 weaker with Feb at $182.22. CME has no deliveries listed through Wednesday with the oldest dated long at 4/18/23. There were no cash trades through Tuesday, from the $176-$179 sales last week. Feeder cattle futures closed 42 cents to 55 cents...

Cotton futures closed the midweek session 46 to 93 points in the black and just ~20 points off the session highs. Census data confirmed cotton exports were 1.106m bales in December. That was a 3-yr high for the month and was a MY high for the season. The season’s total...

Front month wheat futures ended the day with gains as corn and soybeans fell for the midweek session. SRW futures ended the day back above the $6 mark with 4 to 7 cent gains. KC HRW futures were fractionally mixed to a penny higher at the end of Wednesday. Spring...

Software behemoth Microsoft ( NASDAQ:MSFT ) now leads as the most valuable stock in the world with a market cap of $3.08 trillion. Less than six months ago, when I wrote about Microsoft, it was already nearing its all-time high, and I reaffirmed my bullish stance. Since then, the stock has gained another whopping 28%. At this juncture, I reassert my bullish stance because I believe MSFT is ready to embark on another decade of supernormal returns supported by multiple growth catalysts. Microsoft Continues to Report Upbeat Quarterly Results On January 30, Microsoft reported upbeat Q2 results for the sixth consecutive quarter, driven by robust cloud computing momentum and strong growth across all segments. Adjusted earnings of $2.93 per share handily beat analysts’ estimates of $2.77. Also, the figure was 26.3% higher than last year’s figure of $2.32 per share. Revenues came in at $62.02 billion, jumping 17.7% year-over-year and surpassing analysts’ estimates of $61.1 billion. All eyes were waiting for the Cloud segment's numbers, and investors were not disappointed. The Intelligent Cloud business segment, which includes Azure Cloud, SQL Server, and Windows, among others, grew 20% year-over-year to $25.8 billion, beating expectations. Notably, Azure and other cloud services reported revenue growth of 30% (28% in constant currency), again much ahead of Wall Street's expectations. Despite the upbeat Q2 print, Microsoft gave out an outlook that came in below expectations. Q3 revenues are expected to range between $60 billion and $61 billion versus the consensus estimate of $60.93 billion. Cloud + AI Combination Will Continue to Drive Future Returns AI and cloud computing will continue to complement and spur demand for each other. Further, the cloud optimization observed in 2023 due to recessionary fears is now over, and cloud computing is once again experiencing significant growth across the industry, as evidenced by reports from various companies. For instance, Amazon’s ( NASDAQ:AMZN ) AWS now reportedly stands at the cusp of a $100 billion annual run rate. As noted above, the company saw robust growth in its Intelligent Cloud business, specifically Azure. More importantly, six percentage points of Azure's growth came from AI-related services. Furthermore, the AI-related growth rate has doubled since the previously reported quarter. Azure AI includes AI training and other AI-related services. It's noteworthy that Azure AI now boasts 53,000 customers, with one-third being newly acquired over the past 12 months, and it's estimated to be an over $3 billion run rate business. This once again emphasizes the huge opportunity AI presents in the coming years. It is clear that AI will continue to drive the growth story for the “Magnificent Seven.” It's no wonder then that not just Microsoft but peers like Meta ( NASDAQ:META ), Amazon, and Alphabet ( NASDAQ:GOOG ) ( NASDAQ:GOOGL ) are increasing their investments toward AI capabilities in a big way. For the recently reported December quarter, MSFT reported a 69% jump in CapEx (including finance leases) to $11.5 billion. Further, MSFT’s well-known collaboration with OpenAI’s ChatGPT puts the company in a very enviable AI position, much ahead of its peers. CEO Satya Nadella stated his optimism on AI, saying, "We've moved from talking about AI to applying AI at scale… we're winning new customers and helping drive new benefits and productivity gains across every sector." Therefore, AI will continue to incrementally contribute to revenues and earnings as its adoption across sectors continues to grow manifold. On a separate note, during Q2, MSFT closed its biggest acquisition ever -- the long-due proposed acquisition of gaming software rival Activision Blizzard ( NASDAQ:ATVI ) for $69 billion. The deal will add to MSFT’s diversified revenue stream. Further, Microsoft 365 Copilot is showing steady adoption, and the company remains optimistic about its growing contribution to revenue in the coming years. Microsoft’s Valuation Isn't Cheap but Isn’t Too Expensive Despite being the most valuable stock in the world, Microsoft’s valuation isn't as expensive as one would think. At first glance, It may look expensive, trading at a P/E of 36x currently. Nonetheless, I believe the premium is justified, given its favorable industry-leading market position, robust margins, diversified revenue stream, and huge exposure to high-growth AI and cloud businesses. For the sake of comparison, online retail and cloud computing giant Amazon is trading at a P/E of 58.5x, while social networking company Meta Platforms is trading at a 31.9x P/E. Is MSFT Stock a Buy, According to Analysts? Surprisingly, MSFT stock hasn’t seen any significant upward movement despite upbeat Q2 earnings, mainly due to weaker-than-expected guidance. However, Wall Street analysts continue their bullish stance, with a majority having raised their price targets on the stock post-earnings. Overall, the stock commands a Strong Buy consensus rating based on 32 Buys, one Hold, and one Sell. Microsoft stock’s average price target of $469.45 implies 13.4% upside potential from current levels. Conclusion: Consider Buying MSFT for Its Long-Term Growth Outlook Microsoft stock has returned around 1,200% over the past decade. I believe it will continue to generate attractive long-term returns with its leadership position in the world of AI & computing, coupled with a well-diversified portfolio and an impressive track record of solid execution. AI and cloud computing will be the frontrunners in driving outstanding growth in the next 10 years. Hence, I will buy the stock at current levels with a bullish long-term outlook. Disclosure

China's ousting of its securities watchdog head on Wednesday drew a muted cheer from markets, with investors holding out for bigger measures that would tackle the root of the malaise gripping the world's second-largest economy.

TechTarget (TTGT) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring

DHI Group (DHX) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring it

Annaly Capital Management (NLY) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for