Category: Current Updates
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Micron’s Record Quarter and AI Opportunity: Hold for Growth Amid Rising Risks
Analyst consensus sets Micron’s 12-month target price around $197, driven by AI-fueled chip demand, strong quarterly performance, and bullish growth forecasts; major brokerage targets now range up to $220, reflecting industry leadership in memory solutions. Fundamental valuation models (such as discounted cash flow and fair value based on long-term earnings growth) suggest a much lower…
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Interest Rates Highest in 22 Years
Fed has nudged the rates higher by another 25bps from 5.25% to 5.50%. Despite the easing inflation the Fed has raised the rates the highest in the history of 22years. Fed Chair Jerome Powell says will take data driven decisions on a meeting to meeting basis.
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Q2 Earnings Season
Summary:– The first half of 2023 has witnessed huge advances in the global market indices, driven by a few key large tech companies, despite an economic downturn and rising interest rates.– Q2 earnings by reports by Morgan Stanley, Bank of America– Indices mixed trade: S&P up 0.33%, Dow up 1.02% & Nasdaq is down by…
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Inflation Slows Down
Source: https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html The CPI is a crucial indicator of inflation since it tracks costs for everything from haircuts and concert tickets to fresh produce and fruits. The result for June represents a considerable drop from 9.1% in June 2022 & represents the smallest 12 month increase since March 2021. Price increases have started to slow…
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Inflation and Interest Rates UK
Source: https://www.economicshelp.org/blog/1485/interest-rates/historical-real-interest-rate/ Bank of England raises interest rates by 50bps to 5%. Rates have been the highest since 2008. Inflation is at a rise for the last four months in UK and seems to want to stay. Mortgage rates on 2-year fixed terms had reached 6% yesterday, and with this inflation report, they are sure…
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Decline of Silicon Valley Bank
On Friday, the Fed formally closed Silicon Valley Bank (SVB) and placed it under FDIC administration. SVB is the 16th-largest American bank but that’s not the reason they’re so crucial. Almost 50% of venture-backed firms are thought to bank with SVB. Up until Monday, when they will be able to access up to $250k of…
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The effectiveness of Amazon’s cost-cutting efforts
Summary Thesis Amazon had strong growth during the pandemic, with more people spending time online shopping. This may have resulted in the leadership at these companies becoming overly optimistic on future growth resulting in rapid headcount growth. <At AMZN, the SG&A expenses are much higher than the EBIDTA> and this is not sustainable. In this…
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Meta’s cost cutting measures, and why they are necessary for its long term survival
Summary Thesis Meta had strong growth during the pandemic, with more people spending time online, and on social media. This may have resulted in the leadership becoming overly optimistic on future growth resulting in rapid headcount growth. These actions did translate into an actual bottom line growth in the short term, but long term prospects…
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Apple: A great stock to invest for the long term
Article Thesis Apple Inc. (NASDAQ:AAPL) revealed on Thursday afternoon its most recent quarterly results. On all lines, the company performed above expectations, and profits were actually higher than expected. I feel strongly that the company is a good deal at these levels, and generally, the most recent quarterly results have strengthened my conviction that AAPL…
Adithi Pai 