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 Amazon has found itself in a tough spot, struggling to maintain the momentum in FCF Long-term survival of their Retail and AWS businesses on proving short-term as well as long-term profitability Thesis Amazon had strong growth during the pandemic, with more people spending time online shopping. This may have resulted in the leadership at…
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Meta’s cost cutting measures, and why they are necessary for its long term survival
Summary Team Meta have found themselves in a tough spot, struggling to maintain the momentum in FCF long term survival of this tech giant hinges on efficient capital utilization I believe that cost cutting measures are a good thing and will yield significant benefits in the long term from a shareholder perspective Thesis Meta had…
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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…
