Hey bestie!
How’s it going?
How are we faring with all that’s going on across the globe? I know it’s one thing right after another but we’re gonna get through it all.032
Are you ready to talk stocks today? Because I’ve got some interesting information to share with you about some great stocks.
You might want to sit down and grab a juice for this!😉
Adobe Shaking Up Things!
Adobe’s stocks took a major decline after its latest earnings report – dropped nearly 14%! No way! I heard the decline marks the stock’s highest decline since Sept. 15, 2022, when shares closed down 16.8%. Wow! That’s a major hit!
Yeah, but it’s not all bad news though.
The company’s revenue and earnings per share actually beat analyst estimates. The earnings came in at $4.48 compared to the estimated $4.38. And their revenue? It soared past predictions, hitting $5.18 billion when the street was only betting on $5.14 billion!
Here’s the twist: For the current quarter, the company expects adjusted earnings per share of $4.35 to $4.40, whereas analysts expect $4.38. Adobe’s said revenue will total $5.25 billion to $5.30 billion, slightly below the $5.31 billion estimated. 🤐
But talk about shaking things up! Adobe has announced a $25 billion share buyback and that’s not all.. there’s this new kid on the block.. Adobe AI. The company has this artificial intelligence assistant for Reader and Acrobat apps to help you tackle those never-ending PDF documents! Interesting!
Bank of America analysts are dropping its price target for Adobe shares from $700 to $640. But hey, they’re still rooting for Adobe, especially with Firefly, the company’s generative AI image creation tool, in the spotlight.
Mmmmh…Adobe seems to have its hands full, between the share buyback, Adobe AI, and Firefly.
It’s a lot to take in! What are your thoughts on the whole thing?
GE Healthcare Dipped, but Still Making Waves!
GE HealthCare Technologies stock went down more than 3%! Apparently, they’re planning on selling more shares than originally planned.
I guess they must be pretty confident about their business!
It is said that they were originally planning to offer 13 million shares of its common shares, but now they’re offering 14 million! But that’s not all! the announcement of this sale led to it becoming the second-biggest S&P 500 decliner after Dollar Tree Inc. Oh! boy!
And get this, it’s not the company itself that’s selling those shares, it’s General Electric! You know GE still holds a 19.9% stake in the company since they spun off the unit back in January 2023. But before the offer closes, General Electric Co. is expected to exchange the GEHC shares for debt held by Morgan Stanley Bank – the sole book-running manager on the deal.. Once the debt-for-equity exchange is completed, Morgan Stanley intends to sell the GEHC shares to the underwriter.
So yeah, even though GE HealthCare took a bit of a hit, dropping 3.6% to $88.48, they’ve still been up overall. I mean, they’re up more than 14% over the last year! while the S&P 500 SPX has gained 34%.
Not too shabby, huh?
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Micron on the Up, Up!
Whoa! you’re not going to believe what I heard about Micron! The chip company is getting a lot of love from investors and analysts. I know AI is all the rage right now, but I had no idea Micron was a big player in the space too!
Are you as surprised as I am?
The company saw gains in trading after top-rated analyst Christopher Danely reaffirmed a Buy rating on the stock. Shares rose 2.5% in premarket trading on Friday. Micron is due to report fiscal second-quarter results on March 20, and Danely expects that Micron’s earnings will surpass expectations.
“We expect the company to post upside to consensus and increased guidance for F3Q24 given strong DRAM pricing and shipments of higher-priced, higher-margin, High Bandwidth Memory which is shipping with Nvidia (NVDA) AI systems,” analyst Christopher Danely wrote in an investor note. Danely reiterated his Buy rating on Micron and bumped his price target to $150 from $95.
For Q2, he thinks Micron might lose $0.28 per share on $5.3B in revenue. However, a consensus says a loss of $0.42 per share but the same revenue.
And for Q3?
Danely’s calling it at $6B in sales with $0.26 earnings per share (EPS) Sounds like Micron’s on the up and up!
Danely believes Micron’s earnings per share (EPS) will be higher than previously forecasted, and he has raised his target price accordingly to $150, 15 times the fiscal 2026 earnings estimate of $10.3 per share. According to him, the new target price is based on the idea that Micron’s AI exposure will be worth more in the future, and this is reflected in the higher valuation compared to other AI-focused companies.
Well, it looks like Micron is in for some good times ahead, if Danely’s estimates are to be believed!
Oracle
Safra Catz, Oracle’s CEO, dropped some bombs during Oracle’s third-quarter earnings call on 12 March call. She’s eyeing a whopping $10 billion for next year! And get this, for 2024, she’s aiming for between $7 to $7.5 billion! I bet you see this coming!
Catz mentioned it’s a step up from the estimates for 2024. But you know what’s wild? She hinted at ‘supply constraints’ holding back even bigger wins for their infrastructure cloud services.
Larry Ellison, chief technology officer and Oracle chairman, also isn’t holding back either! He announced the company’s record-breaking data center construction. And as usual, Oracle keeps smashing records left and right! And guess what? This data centre ain’t just a local trend; it’s a global phenomenon!
According to Construction Briefing, demand for data centres is off the charts worldwide! And you know it’s not just about quantity; it’s about the size too! Ellison bragged about building mammoth data centres that could house fleets of airplanes. Talk about going big or going home! hahaha!
Oracle’s playing in the big leagues, building skyscraper-sized data fortresses! It’s no wonder the global data center construction market is expected to grow annually at a compound rate of 6.5% and to hit $73 billion by 2028!
What are you waiting for?!?!
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