Investors Are Uneasy, But Analysts Remain Optimistic
9 minutes ago
Economists, consumers, and business executives are feeling uneasy, yet Wall Street analysts continue to exhibit optimism.
According to a recent FactSet Research report, 55.7% of the 12,320 analyst ratings for S&P 500 stocks are classified as Buy ratings. If this trend continues until the end of the month, it would mark the highest percentage of Buy ratings at month-end since August 2022.
Last week saw the S&P 500 enter a correction phase driven by rising worries regarding the tariff policies of the Trump administration, which could inflate prices and impede economic growth.
Despite facing significant challenges, major tech stocks remain among the most favored, with Microsoft, Amazon, and Nvidia ranked as the S&P 500’s fourth, fifth, and sixth highest-rated stocks, respectively. Notably, analysts recommend holding onto these stocks without suggesting any sales.
The tech sector boasts a Buy rating percentage of 63%, second only to the energy sector at 65%. Conversely, consumer staples—the defensive sector typically favored during recessionary fears—hold the lowest Buy rating share at 41%.
This trend aligns with a recent Bank of America report indicating that investors opted to buy cyclical stocks while selling defensives amid last week’s market downturn.
Carnival Reports Strong Results Amid ‘Incredible Demand’
1 hr 8 min ago
Carnival Corporation reported earnings for its fiscal first quarter that exceeded expectations, along with record revenues, although its outlook for the current quarter fell short of analyst estimates.
The company revealed adjusted earnings per share (EPS) of $0.13, with Q1 revenues hitting a record $5.81 billion, surpassing Visible Alpha forecasts. CEO Josh Weinstein attributed the strong performance to “incredibly strong demand” across its portfolio, which included better-than-expected ticket prices and onboard spending.
Weinstein noted that, while the company is not completely shielded from global economic uncertainties, it remains on track for another excellent year across its cruise brands, now expecting full-year adjusted EPS to reach $1.83, an increase from a previous estimate of $1.70.
For the upcoming Q2 of fiscal 2025, Carnival anticipates adjusted EPS of $0.22 and adjusted EBITDA of $1.32 billion, although these figures slightly trail analyst expectations.
Despite some uncertainty, Carnival’s shares dipped about 0.6% during afternoon trading but have increased by roughly 25% over the past year.
Supermicro Leads S&P 500 Gains After Upgraded Rating by JPMorgan
1 hr 55 min ago
Super Micro Computer saw its stock surge, leading the S&P 500’s gains on Friday after JPMorgan upgraded their rating and increased the price target for the server manufacturer.
The rating moved from “underweight” to “neutral,” with the price target raised to $45 from $35, reflecting confidence in Supermicro’s capability to overcome past filing challenges and meet increasing server demand linked to Nvidia’s Blackwell chips.
Analysts noted that Supermicro stands to benefit significantly from the increasing demand for Blackwell-based server shipments that surpass prior generation yields.
Following the upgrade, shares rose nearly 8%, bringing year-to-date gains close to 40%, although they remain over 50% down compared to the previous year.
JPMorgan analysts do caution that challenges may persist, specifically in the competitive AI server market impacting margins and future capital expenses.
Micron Stock Drops, Though Analysts Remain Positive Despite Margin Concerns
2 hr 39 min ago
Micron Technology shares experienced a decline on Friday following the release of its fiscal second-quarter results. Nonetheless, analysts maintain a bullish outlook on the memory chip company.
UBS analysts emphasized Micron’s leadership in high-bandwidth memory, stating that its DRAM chip sector should benefit from sustained supply-demand dynamics as long as AI demand continues. They uphold a “buy” rating with a price target of $130.
Although Micron shares initially rose post-report, they subsequently fell around 8% intraday. Analysts noted that while revenue and profit forecasts exceed market expectations, comments regarding gross margins posed challenges.
Citi also reaffirmed a “buy” rating but slightly reduced its price target due to ongoing margin issues. Conversely, Wedbush increased its target to $130, while Bank of America remained steady at $110.
Nike Stock Drops as Analyst Predicts Lengthy Turnaround
3 hr 40 min ago
Nike shares fell on Friday after the company presented disappointing revenue guidance, prompting several analysts to reduce their price targets.
JPMorgan analysts indicated that Nike’s recovery effort will require considerable time, adjusting their price estimate from $73 to $64 and expecting gradual improvements in the latter part of fiscal 2026.
Nike’s CFO noted forecasted fourth-quarter sales would likely be at the lower end of the “mid-teens” range, diverging from analyst projections of around a 12% decline. Historical comparisons revealed the impact of Cyber Monday benefiting this year’s sales.
UBS modified its target from $73 to $66, expressing doubts about Nike’s ability to sufficiently enhance its product offerings and marketing strategies. Meanwhile, Deutsche Bank dropped its target from $80 to $77.
Overall, Nike shares dipped about 6% intraday and have lost approximately one-third of their value in the last year.
Quantum Computing Stock Declines After Significant Loss Report
4 hr 41 min ago
Quantum Computing’s stock fell on Friday after the firm reported a substantial loss for its fourth quarter.
The company’s shares increased earlier in the week following positive news from another sector firm, D-Wave Quantum. However, upon reporting a Q4 net loss of $0.47 per share—exceeding the previous year’s loss—investors reacted negatively.
Overall revenue fell by 17% year-over-year to $62,000, primarily due to merger-related costs with QPhoton last June and a 35% increase in operating expenses.
As markets opened Friday, Quantum Computing shares plummeted by 14% at one point, eventually stabilizing to about a 2% decrease, having lost three-fourths of their value since a peak in December.
FedEx Stock Drops as Company Lowers Outlook for Third Consecutive Quarter
5 hr 44 min ago
FedEx’s stock fell after the company reported quarterly earnings that did not meet analyst expectations and adjusted its full-year outlook downward for the third straight quarter.
Expecting flat to slightly falling revenue year-over-year, FedEx also reduced its EPS forecast to between $15.15 and $15.75, down from $16.45 to $17.45.
In its fiscal third quarter, FedEx achieved a 2% revenue increase to $22.2 billion, beating analysts’ predictions. However, adjusted earnings fell short of market expectations, leading to negative investor response.
CEO Raj Subramaniam cited a “very challenging operating environment” as contributing factors, including peak season compression and significant weather impacts.
Following the earnings report, FedEx shares saw a decline of over 10%, compounding a 22% drop in value for the year.
Stock Futures Indicate Lower Opening for Major Indices
6 hr 44 min ago
Futures associated with the Dow Jones Industrial Average fell by 0.4% in premarket activity.
S&P 500 futures also declined by 0.4%, while Nasdaq 100 futures dropped by 0.5%.
