Share to Twitter Share to Linkedin Our theme of Mid-Cap SaaS stocks has fallen by about 42% year-to-date, underperforming the broader Nasdaq-100, which remains down by roughly 33% over the same period. The initial leg of the sell-off in software stocks was driven by investors adjusting their allocations and valuations of stocks to account for the Federal Reserve’s monetary tightening - the benchmark federal funds rate now stands at over 3%, from just about 0.25% at the beginning of this year. We’ve now reached a point where earnings growth for major software players is beginning to look a bit vulnerable, considering rising inflation, a softening economy, and the easing of the Covid-19 era demand tailwinds for technology products. This is putting further pressure on stock prices within the sector. So what’s the outlook like for the theme? Now, the macro environment remains tough with U.S. GDP contracting over the last two consecutive quarters and the Fed … [Read more...] about Are Mid-Cap Software Stocks Good Value Post The Tech Rout?
Stock price of micron technology
Share to Twitter Share to Linkedin Shopify stock (NYSE: SHOP) continues to drift lower, falling by about 10% over the past month, taking its year-to-date decline to about 80%. While a bulk of the decline in the stock came earlier this year, as investors fled growth stocks as the Fed began its monetary tightening, Shopify’s underlying e-commerce business is also taking a hit as people return to physical stores, with high inflation and rising rates also weighing on consumer confidence. Shopify posted a tough set of Q2 2022 results with revenue growth slowing to 16% year-over-year versus the 57% growth the company posted in the year-ago quarter, with the company also swinging to a net loss, versus a profit a year ago. Now, given the magnitude of the rout in Shopify stock, it’s safe to assume that much of the recovery will hinge on macros. Thus far, the Fed has also not shown signs that it will ease on its rate hikes, with the bank raising rates yet again by … [Read more...] about Down 80% This Year, What Will It Take For Shopify Stock To Recover?
- A + A NEW YORK (Oct 4): Micron Technology Inc said it plans to invest as much as US$100 billion over the next 20 years to build a factory in upstate New York to boost US production of memory chips. The announcement on Tuesday represents the largest private investment in New York state history, according to a statement from Boise, Idaho-based Micron. The company said the first phase investment of US$20 billion, in Clay, New York, is planned by the end of this decade. The New York site, which will generate about 50,000 jobs in the state, including about 9,000 high-paying Micron positions, adds to the company’s previously announced manufacturing facility in Boise. The company said it expects to get US$5.5 billion in incentives from the state of New York over the course of the project. The so-called megafab chip factory complex is part of Micron’s strategy to “gradually increase American-made leading-edge DRAM production to 40% of the company’s global output over the … [Read more...] about Micron plans investment of up to US$100b in New York chip factory
Share to Twitter Share to Linkedin The Supreme Court will take up a case that will determine tech companies’ degree of legal liability for content that creators publish on platforms. Prepare to shell out the most you have in half a decade for holiday travel this year. Plus, we bring you a Forbes exclusive on how Alphabet’s Sundar Pichai and Accenture’s Julie Sweet are leading the charge to help settle 125,000 displaced refugees in the U.S. over the next year. Sign up here to get the Forbes Daily Dozen morning newsletter straight to your inbox. In The News Today The stock market rallied on Monday as fourth quarter trading kicked off, with investors hopeful the final stretch of the year will help correct an otherwise dreadful year for the market—a theory backed by historical data. The Dow posted its second-best day of 2022 with a 2.7% jump, while the S&P 500 gained 2.6% and the Nasdaq rose 2.3%. Investigators hired by … [Read more...] about Daily Dozen | Forbes: ‘Lehman Brothers Moment’; U.S. Stocks Jump; Mark Cuban’s Playbook
Representative Image Tracxn Technologies Ltd has set price band at Rs 75-80 a share for its initial public offering (IPO) which will open for subscription on October 10 and close on October 12. Anchors bidding will start on October 7 and shares will be allotted on October 17. The stock will be listed on October 20. The IPO of the Bengaluru-based analytics firm is an offer for sale (OFS) of up to 38.67 million shares by shareholders and promoters. At the upper end of the price band, the firm will raise around Rs 310 crore. Co-founders Neha Singh and Abhishek Goyal are looking to sell up to 7.66 million shares each, Flipkart founders Binny Bansal and Sachin Bansal 1.26 million each, Elevation Capital 10.98 million, Accel India IV Mauritius 4.02 million and SCI Investments V 2.18 million shares. Also planning to sell are Sahil Barua, Deepak Singh, Trustees, Kolluri Living Trust, Milliways Fund LLC, Rathnagirish Mathrubootham, Apoletto Asia Ltd, Trustees, NRJN Family Trust, … [Read more...] about Tracxn Tech sets IPO price band at Rs 75-80 a share
Share to Twitter Share to Linkedin ArcelorMittal stock (NYSE: MT), the largest steel producer in Europe, declined by about 16% over the last month (about 21 trading days). While the company’s financial performance over the first half of 2022 has actually been pretty strong, with operating profits and steel price realizations rising versus last year, there are multiple headwinds clouding the outlook for the steel market. With the Russian invasion of Ukraine now into its seventh month, elevated energy prices and supply chain issues are weighing on consumers in Europe, which is ArcelorMittal’s single largest market (about 53% of sales in 2021). Moreover, the U.S. Federal Reserve and other major central banks have also been hiking interest rates at an aggressive pace to combat inflation. Last month, the U.S. central bank raised its benchmark rates yet again by 0.75%, taking the Federal Funds rate to over 3%, from just about 0.25% at the beginning of this year. … [Read more...] about Is ArcelorMittal Stock Likely To Recover From The Recent Selloff?
Share to Twitter Share to Linkedin Credit Suisse’s stock (NYSE: CS) has lost approximately 59% YTD, as compared to the 26% drop in the S&P500 over the same period. Further, the stock has lost almost 25% over the last ten trading days. The recent decline was after Reuters’ report on 23rd September that the bank is considering several options to overhaul the investment banking business like raising fresh capital and exiting the U.S. market. While the firm denied these claims, it has made the investors cautious about the stock. Notably, more information about the restructuring plan is likely to come with Q3 results. CS stock is currently trading around $4 per share, which is 41% below its fair value of $7 – Trefis’ estimate for Credit Suisse’s valuation . The Swiss bank missed the consensus estimates in the second quarter of 2022, with net revenues decreasing 32% y-o-y to $3.8 billion. It was driven by a 43% drop in the investment bank unit, followed … [Read more...] about Is Credit Suisse Stock Attractive At The Current Levels?
Share to Twitter Share to Linkedin Topline Stocks continued to rally during early Tuesday trading following one of their best trading days of 2022 as the market shakes off its worst fears that sent the market tumbling in September – though some warn the rally will be short-lived. Key Facts The Dow Jones Industrial Average rose 1.4%, 400 points, and is up 4% on the week after a 760-point spike Monday, its second-largest single-day rise of the year. The S&P 500 rose 1.7% and tech-heavy Nasdaq jumped 2.2%, building on their respective 2.6% and 2.3% gains Monday. Tesla shares rose 4% early Tuesday after a dramatic 9% loss Monday, as several banks expressed optimism about the electric vehicle maker’s long-term prospects after third-quarter vehicle deliveries fell short of analyst estimates. Driving this week’s gains are investors’ increasing cautious optimism about monetary policy globally. The market welcomed the Australian … [Read more...] about Stock Market Opens Up Big As It Looks To Build On Massive Gains
Representative image. Festive fervour is at its peak and fast-moving consumer goods (FMCG) companies are expecting it to spark a revival in consumption, which has been tepid for some time. However, despite the prices of commodities such as palm oil and fuel dipping, these companies, while rolling out promotional offers and discounts, are yet to introduce widespread price cuts. FMCG companies have instituted price hikes quarter after quarter over the past year on the back of skyrocketing commodity prices. While there has been an expectation that they would lower prices in the wake of input costs ebbing, the FMCG players have taken a cautious stance. “Across FMCG products, we have seen strong inflation since the start of the year for some spices and branded food items such as rice and wheat products. However, strong price cuts for edible oils, especially palm oil, have helped rein in these prices and increased consumption for the category,” said Akshay D’Souza, chief of growth … [Read more...] about MC Explains: Why FMCG companies aren’t in a rush to lower prices
- A + A BENGALURU (Oct 4): The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and US Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. New orders for US-manufactured goods remained unchanged in August as expected, while US job openings, a measure of labour demand fell by the most in nearly 2-1/2 years in August. Following the economic data, yields on government bonds dipped for a second day on hopes of moderation in monetary policy even though San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes. "Job openings data coming in lower than expected points to a weakening labour market. If confirmed by the non-farm payrolls report on Friday it could give the Fed the cover to slow down its tightening," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital. … [Read more...] about Growth stocks lift Nasdaq 3% as Treasury yields ease