PORTFOLIO MANAGEMENT
The Portfolio Management Division focuses on educating its members about the world of investments by helping them build an investor’s mindset through the operation of a real portfolio. This involves staying updated with current political, economic and market trends, in order to constantly source opportunities. With this knowledge, analytical reports are produced on individual stocks or ETFs that can complement the portfolio, along with analyzing and reporting the overall portfolio performance.
The focus is to maximize portfolio growth as any returns which surpass our benchmark (i.e. MSCI WORLD IDX) will be donated to a charity designated by the Investment Club as a whole, fostering a collective commitment to social impact. Any positions we hold are carefully picked and abide by our investment thesis:
“We aim to invest in both momentum-driven opportunities and high-quality, undervalued businesses with strong fundamentals and promising long-term prospects. Our strategy is adaptable to changing market conditions, targeting medium to long-term value creation across global equity markets.”
Our Publications:
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Amazon’s acquisition of iRobot fails following EU veto
Jan 29th, 2024 – In a surprising turn of events, Amazon has decided to abandon its planned acquisition of iRobot, a renowned vacuum-maker company, known for its Roomba devices; this move comes after both companies acknowledged that obtaining regulatory approval for the deal was an insurmountable challenge. Alongside this announcement, iRobot disclosed plans to lay off approximately 31% of its workforce, equating to around 350 employees, and simultaneously, Colin Angle, iRobot’s Chair and CEO, has stepped down with immediate effect. Following this news, iRobot’s stock experienced a 10% decline during morning trading. The uncertainty surrounding the fate of the deal…
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Stock market outlook on elections, as holdings release quarterly reports
Jan 28th, 2024 – Given the USA is currently entering the presidential race, it is wise for us to look at how a possible republican victory might affect the stock market, and especially, our portfolio. As it stands, Donald Trump seems to have the upper hand over Nikky Haley in the republican party, meaning we will probably see a repeat of the 2020 race, featuring Joe Biden and Donald Trump. Joe Biden has had a relatively firm stance on the export of Artificial Intelligence related technology to China, banning certain Nvidia products from being exported altogether. These bans haven’t significantly…
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Leadership changes at JPMorgan: Who’s Next After Jamie Dimon?
Jan 27th, 2024 – JPMorgan Chase is undergoing significant leadership changes, stirring speculation about the eventual successor to current CEO, Jamie Dimon. The reshuffle involves key executives, including Jennifer Piepszak and Marianne Lake, who were previously considered front-runners for Dimon’s position. Piepszak, former co-head of JPMorgan’s consumer bank, now shares the role of co-head of the commercial and investment bank with Troy Rohrbaugh, an experienced leader in the bank’s trading operations. Marianne Lake, Piepszak’s former partner, transitions from co-head to become the sole CEO of the consumer bank, overseeing major operations in retail banking, credit cards, and small business lending.…
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Mixed emotions on Friday for Wall Street: Tech stocks slide and coinbase gains
Jan 26th, 2024 – On Friday, markets showed indecision, as the S&P 500 declined 0.07% to end the session at 4,890.97, ending its winning streak at six days. The Nasdaq declined 0.36% to 15,455.36 points, while the Dow Jones Industrial Average rose 0.16% to 38,109.43 points. Tech stocks faced declines on Friday, and Intel suffered a significant setback, with its stock falling by almost 12% after posting a weak guidance for the first-quarter that was below expectation. The company decided to be cautious for two main reasons: its challenge in catching up to Nvidia in the AI chip-maker market and…
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More updates on the portfolio, as club holding further tumbles
Jan 25th, 2024 – Portfolio holding Boeing (BA) (Purchased 0.15 units @ $248.79) fell 5.71% today, as the FAA announced a pause to the production of their 737 max 9 planes. However, on a positive note, the planes already produced are now allowed back in the air. This was a major blowback to our holding’s business model. Therefore, we are now reconsidering our stance on the future of the company within our portfolio altogether. From a more macroeconomic perspective, an estimate of the USA’s economic growth in the last fiscal quarter of 2023 beat analyst expectations by 1.3%, as the…
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Portfolio update: IBM beats expectations as holdings continue positive run
Jan 24th, 2024 – The Dow Jones fell 26 basis points today, whilst the NASDAQ and S&P 500 instead grew 0.36% and 0.08% respectively, as Nvidia and other large cap tech companies continue their meteoric rise. Portfolio holding IBM (IBM) (Purchased 0.1693 units @ $151.04) rose today, increasing more than 5% in the post market following the release of their fourth quarter earnings. The company netted $3.3 billion in income or $3.55 per share, with expectations being $2.9 billion in income and $2.96 per share. The firm’s executives cited a sharp increase in Artificial Intelligence demand as the backbone to…
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J&J SETTLES TALC PRODUCTS INVESTIGATIONS, WHILE MA AND TSAI INVERT THE RECENT ALIBABA STOCK MARKET TREND
Jan 23rd, 2024 – Today, Johnson & Johnson (JNJ) reached an important agreement to end an investigation conducted by more than 40 states. The investigation accused the New Jersey based company of false disclosures regarding the real dangers to one’s health health deriving from the use of its talc-based products. By the way, this does not solve the high number of accusations from Johnson & Johnson consumers, according to which the talc-containing products were the main cause of cancer for them. Many of these civil lawsuits will go on trial during the course of 2024. So, it seems like the company just admitted…
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TRADE STORM: TRUMP’S TARIFF TACTICS RESHAPE MARKETS AND IGNITE GLOBAL CONCERNS
Jan 22nd, 2024 – The financial markets are on edge as they grapple with the potential structural implications of Donald Trump’s proposed 10% tariff increase on all imported goods. Michael Every, a global strategist at Rabobank, asserts that this move has the power to “shake up every asset class.” Trump, a leading contender for the 2024 Republican nomination, aims to triple the government’s intake by imposing these tariffs, intending to boost American domestic production. Criticism of the policy is bipartisan, with Treasury Secretary Janet Yellen acknowledging that it would raise the cost of various goods for American businesses and consumers;…
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Investor sentiment, the court on Apple Watches, and the Microsoft-Vodafone partnership
Jan 21st, 2024 – A recent Morgan Stanley survey revealed that Individual investors are increasingly optimistic, with 60% expressing bullishness. The optimism is linked to expectations of Federal Reserve rate cuts. About 60% believe in a “soft landing” for the economy, and 58% see the economy as healthy enough for rate reductions. Despite the Fed signaling cuts, Chris Larkin from E-TRADE at Morgan Stanley urges patience due to modest stock market performance. The survey indicates 42% of investors won’t change portfolios, 26% will, and 18% plan to shift from cash. Inflation (49%) is the top concern, followed by the presidential…
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Altman’s keys to to success and the potential within artificial intelligence
Jan 20th, 2024 – OpenAI CEO Sam Altman’s key to success: be direct, embrace rejection, and take calculated risks OpenAI CEO emphasizes the importance of being clear about one’s goals and asking directly for what is wanted, as it significantly contributes to success. Altman believes that fear of rejection often restrains people from expressing their needs, leading to unfavorable outcomes. Altman’s advice aligns with research indicating that people tend to underestimate others’ willingness to help or say “yes” to requests. The fear of rejection and the tendency to spend time in ways that do not coincide with personal desires are…
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S&P 500 SOARS ON TECH RALLY AND iROBOT FACES EU BLOCK ON AMAZON TAKEOVER
Jan 19th, 2024 – The S&P 500 has reached its all-time high on Friday thanks to a rally by tech companies, which are now rising after a wobbly start of the year. Nvidia (NVDA) (Purchased 0.2773 units @ $471.73) was one of these companies that rallied, in fact the chip-maker company has hit itself its all-time high, thanks to the Meta CEO Mark Zuckerberg that said in an Instagram reel that he is investing billions in Nvidia’s chips to improve his AI infrastructure. About the chip-maker companies, it is important to underline that OpenAI’s CEO Sam Altman is raising funds…
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Big tech pushes Nasdaq to rally
Jan 18th, 2024 – Tech companies powered the market Thursday and pulled the major averages into positive territory. The Dow Jones grew 0,54% closing at 37,468.41, also the tech-heavy NASDAQ jumped by 1,35% to close at 15,055.65. The S&P 500 climbed 0.88% ending at 4,780.94. Lucid (LCID) stock started the day losing again ground with the share price being down 7.2% at 2:30 p.m. ET. This happened after yesterday news hit that Tesla cut again the price of their Model Y in Germany and other european countries, this move was seen as a negative sign for the overall demand of…
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Optimism for Stablecoin laws in 2024 for the US
Jan 15th, 2024 – In a watershed moment for the cryptocurrency sector, Circle’s CEO, Jeremy Allaire, expresses confidence that 2024 could see the United States implementing crucial regulations for stablecoins, such as the widely-used USD Coin. The stablecoin market is currently valued at $135.3 billion and is operating largely in an unregulated landscape, it is easily understandable that such possibility is becoming more and more palpable. The CEO of Circle firmly believes that the U.S. have never been this close to the actual implementation of laws governing stablecoins: speaking at the World Economic Forum in Davos, Allaire noted a significant…
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BlackRock’s Acquisition, BNY Mellon’s Surprising Q4, and Amazon cutting jobs
Jan 14th, 2024 – BlackRock (BLK), the world’s largest asset manager, with 70 offices in 30 countries, and clients in more than 100 countries, is acquiring Global Infrastructure Partners for $12.5 billion, with $3 billion in cash and 12 million shares. Together, the companies will manage assets worth more than $150 billion, creating an infrastructure fund that will rival the industry’s largest players. The CEO Larry Fink sees it as pivotal for retirement savings. The deal coincides with BlackRock’s Q4 results, crossing $10 trillion in assets. Despite shares dipping 0.8% to $786.64, they’ve grown 4% in the past year. The…
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Airline stocks facing headwinds after FAA starts investing being production line and citi cuts 10% of its workforce
Jan 12th, 2024 – On Friday, airline stocks, such as Delta Airlines and United Airlines, respectively lost 8% and 9% of their value. An ETF that includes airline shares was down 4.8%. The S&P 500 started the market day well, but was immediately dragged down by the airline sector. There are three reasons beyond this tumble: Citigroup has announced its worst quarterly result in 15 years. In fact, they reported a loss of $1.8 billion and revenues decreased by 3% compared to last year’s returns in the same quarter. Citigroup CEO Fraser called the performance very disappointing because of the…
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Market is in the green once again, as BTC ETF gets approval
Jan 10th, 2023 – On Wednesday, all major indexes rose. The S&P 500 increased by 0.57% to close at 4,783.45. The Dow Jones added 0.45% to close at 37,695.73, while the Nasdaq increased by 0.75% to end at 14,969.65. Yesterday, a tweet was sent from the U.S. Securities and Exchange Commission’s (SEC) official X account regarding the acceptance of Bitcoin’s ETF. However, it was later revealed to have been made by an unauthorized third party. The Bitcoin price began exhibiting volatile movements, leading to over $300 million in liquidation of leveraged futures positions. The premarket share prices of Coinbase (COIN)…
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MSE trembles following grifols accusations, as Bank of America lowers rating on auto manufacturer
Jan 9th, 2024 – Today, the broader Spanish stock market fell, following the news that Grifols (GRFS) (-21.83%), the third biggest company worldwide in the blood products market, was accused of manipulating its financial data by the US hedge fund Gotham City. According to Gotham City Research, the real leverage ratio of Grifols is 10-13 times bigger than its EBITDA, while, as officially disclosed by the company, the proportion seems to be considerably lower. If the truth is different, this would lead to higher financing costs. Additionally, the hedge fund division stated that the decision taken by Grifols to report…
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Mega cap technology stocks bring upon market rally
Jan 8th, 2024 – Monday was characterized by a shift in investor sentiment brought upon the market by AMZN, MSFT, AAPL and, most notably, NVDA, which rose a staggering 6.61%. This positive shift in mega cap technology stocks contributed to a 2.2% increase in the NASDAQ index, which helped get the broader market out of last week’s slump. As aforementioned, shares of portfolio holding Nvidia (NVDA) (Purchased 0.2773 units @ $471.73), had a field day on monday, rising more than 6%. This astonishing performance came after the announcement of three new consumer focused graphics cards. In recent years Nvidia was…
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THE WAIT FOR A BITCOIN ETF IS ALMOST OVER WHILE TESLA HAS ISSUES IN SOME OF ITS VEHICLES
Jan 5th, 2024 – Today, Friday, January 5, 2024, marks a potential milestone for the approval of Bitcoin ETF, following an announcement by TechCrunch journalist Jacquelyn Melinek on Twitter/X. According to Melinek’s tweet, sources close to the matter suggest that the SEC is poised to approve the bitcoin spot ETF for multiple firms, including major players like BlackRock, Invesco, and Grayscale. This development follows applications from a total of 13 companies seeking to launch spot Bitcoin ETFs. The ETF approval process involves two key steps: After recently being topped by BYD for the first time as the world largest seller…
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Stocks fall once more following mass movement in retail giants
Jan 4th, 2024 – The NASDAQ dipped 0.56% closing at 14,510.30, on the other hand the Dow Jones grew by 0.03% closing at 37,440.34. The S&P 500 also slipped by 0.34% finishing at 4,688.68. QuantumScape (QS) stock roared high Thursday morning’s, rising more than 40%. Volkswagen’s PowerCo subsidiary announced that it had completed a test of QuantumScape’s solid-state lithium battery for electric vehicles and the results were encouraging. The test revealed that the technology could power up over 500,000 kilometers of travel in electric vehicles with a small margin of loss in charge capacity and range. The results stated that…
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Markets tumble again as tension in the Middle East rise
Jan 3rd, 2024 – On Wednesday, the Nasdaq fell by 1.18% to 14,592.21, marking its fourth consecutive day of losses. The S&P slid by 0.80% to close at 4,704.81, while the Dow Jones decreased by 0.76% to close at 37,430.19. The Labor Department reported a decrease in worker demand to its lowest level since March 2021, aligning with the expected 8.8 million at 8.79 million. This data is viewed as a positive metric for the realization of the so-called ‘soft landing.’ Xerox (XRX) slid more than 10% after announcing plans to cut 15% of its workforce to change its organizational…
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Iphone sales put strain on Apple as ratings change across the board (02/01/2024)
Jan 2nd, 2024 – Surprisingly, portfolio holding Apple (AAPL) (0.6 units @183.96) performed poorly on Nasdaq today, experiencing a decrease in price of around 3.6%, after Barclays analyst Tim Long classified it as “Underweight”. The main reason behind such a negative rating assigned to the Cupertino based company is represented by the Iphone 15 sales trend. In fact, it seems to be seriously negative worldwide, with one of the most critical contexts represented by China, where government officials cannot use Apple products anymore due to security reasons. In addition to this, analysts expect that the 16th model of the popular…
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Global markets register their strongest performance since 2019 as Nvidia launches their first China – Focused chip
Dec 29th, 2023 – After an important two-month rally, global stock markets are set to record their strongest performance since 2019, because investors are of the opinion that central banks have ceased their interest rate hikes and that they will start cutting rates in 2024. Demonstrative of this trend, the MSCI World Index has raised by 22% this year and 16% since late October. Bond prices are also rising, as investors are attracted by the current returns and know there is a high chance that money borrowing costs will be cut in 2024. In the US., key stock indices reflect…
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Portfolio holding falls as NASDAQ falls
Dec 28th, 2023 – The S&P 500 closed marginally higher Thursday, on a new all-time high in the penultimate day of trading, as it added 0,04% to finish at 4,783.35. Also the Dow Jones increased, ending the day at 37,710.10 with a +0.14%. On the other hand Nasdaq decreased by 0.03% closing at 15,05.14. Shares of Boeing (BA) dropped more than 1% in afternoon trading after the company began to urge inspections on 737 Max to look for a “possible loose bolt” in the rudder control system. This is the latest quality issue that affects the manufacturer’s bestselling jetliner and …
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Market edges forward as portfolio holding completes aquisition
Dec 27th, 2023 – Today the Dow Jones rose .30%, the S&P 500 increased .14% and the NASDAQ progressed further, up .16%. Portfolio holding Eli Lilly (LLY) (Purchased 0.2 units @ $582.99) spiked 1.9% after it finished the acquisition of POINT Biopharma Global. A company with a focus on therapies for the treatment of cancer. Our portfolio holding is looking to increase their production capacity in the coming years in order to keep up with the demand for their Zepbound drug, which hit markets a few weeks ago. Today, portfolio holding Microsoft (MSFT) (Purchased 0.1 units @ $374.44) was sued…
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Spotting Bad Financial Advice Online: Tips to Stay Safe
Nowadays, there is a growing tendency of younger people seeking financial advice on social media. Platforms such as TikTok have evolved into financial information hubs, with a significant number of users participating in debates using the hashtag #FinTok. However, while social media can provide useful insights, it also presents concerns due to the frequency of disinformation. Brian Walsh, a licensed financial advisor, emphasises the necessity of distinguishing between trustworthy advice and dangerous scams. He identifies three red indicators to look for before following the advice of a financial influencer: Walsh advises checking an influencer’s credentials, looking for indications of being…
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STOCK ANALYSIS: TOYOTA MOTOR CORP.
What is Toyota? Toyota Motor Corp. is a global automotive powerhouse with more than 380,000 employees and 71 manufacturing companies worldwide managed within 6 global headquarters: Toyota Motor North America (TMNA), Toyota Motor Europe NV/SA (TME), Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (TDEM), Toyota Motor (China) Investment Co., Ltd. (TMCI), Toyota Motor Corporation (TMC) and lastly Toyota Motor Asia Pacific Pte Ltd. (TMAP-MS). Guided by the commitment to providing clean and safe products, Toyota’s principles extend to enhancing the quality of life worldwide through advanced technologies and exceptional products and services. Such a goal aligns with the corporate mission…
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Market movements, India’s AI demand and the investor’s shift to gold
Dec 22nd, 2023 – Micron Technology (MU) shares climbed 8.6%, marking one of this week top performance among S&P 500 stocks, after the company reported better results than the ones expected. The semiconductor maker benefited from higher prices and strong demand for its artificial intelligence (AI) chips. Carnival Corporation (CCL) shares added 6.2% when the cruise line’s loss was less than expected, and its revenue exceeded estimates as cruise demand remained steady. Warner Bros. Discovery (WBD) and Paramount Global (PARA) fell 1.5% and 2.8%, respectively, following reports that the two entertainment giants are discussing a possible merger. India is leveraging artificial intelligence…
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Nasdaq pops as portfolio holding tumbles
Dec 21st, 2021 – The Dow Jones grew 0,87% and closed at $37.404,35 after Wednesday’s hit, the Nasdaq recovered closing at $14.963,87 with a growth of 1,26%. The S&P 500 recovered from Wednesday closing at 4.745,75 with a growth of 1,03%. Japanese automaker and portfolio holding Toyota (TM) shares fell by 4% after the announcement of a recall of about 1 million vehicles on Thursday. This happened also after the company’s subsidiary Daihatsu halted shipment of all its vehicles on Wednesday after an investigation found safety issues in the cars. Even though the beginning failed in the morning the stock…
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Market ends losing streak as consumer confidence increases
Dec 20th, 2023 – On Wednesday, the Dow Jones and Nasdaq ended their 9-day winning streaks, decreasing by 1.27% to 37,082 and 1.50% to 14,777.94, respectively. The S&P 500 also slipped by 1.47% to 4,698.35. The Conference Board announced that the consumer confidence index increased to a 5-month high of 110.7 in December. It shows us that American consumer’s optimism about future labor conditions is growing. November existing home sales increased by 0.8%, to 3.82 million units, however Economists were expecting a fall of 0.8% to 3.76 million. One of our portfolio holdings, Toyota (TM) (Purchased 0.5 units @ 186.34)…
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The FED’s upcoming meeting and GME comeback
During this week’s Fed Meeting, it’s very likely main interest rates will remain unchanged. But even if they don’t do anything, what these decision-makers talk about, or don’t talk about, can still affect the stock market. Currently, the Fed’s benchmark interest rate is at its highest since 2001, a result of 11 rate hikes since March 2022 aimed at curbing inflation. Despite positive signs in inflation rates nearing the 2% target, speculation arises about the Fed potentially lowering interest rates soon. Fed Chair Jerome Powell recently cautioned against premature speculation on rate cuts, emphasizing the possibility of raising rates further…
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IBM GROWTH IN AI AND CLOUD SERVICES SECTORS CONTINUES, AS BOEING BENEFITS FROM LUFTHANSA EXPANSION PLANS AND ORACLE STARTS PROVIDING SERVICES TO A MAJOR US HOSPITAL
Dec 19th, 2023 – While experiencing a current negative trading trend (-0.45% at 12:30 EST), portfolio holding International Business Machines (IBM, 0.1693 units @ $151.04) announced the forthcoming acquisition of 2 major platforms, Software AG’s StreamSets and WebMethods, paying $2.3 billion cash. The decision taken by the tech giant will contribute to the increase of its dominance in the AI and Hybrid Cloud sectors, with positive outcomes on its market performances in the near future. StreamSets and WebMethods together form one unique tech super platform owned by Software AG, serving more than 1500 customers worldwide. Portfolio holding Boeing (BA, 0.15…
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Meta’s resurgence: From struggle to soar in 2023
Dec 18th, 2023 – In 2022, Meta faced a crisis, with its stock at a six-year low, declining sales, and challenges from TikTok. However, 2023 marked a significant turnaround, with Meta shares surging by 178%, poised to become its best year on record. The change is thanks to the CEO Zuckerberg’s new strategies, including substantial cost-cutting measures such as the reduction of over 20,000 jobs. After three quarters of declining sales in 2022, Meta experienced a remarkable 23% growth in the third quarter of 2023, due to the recovery of digital advertising and the capture of market share from rivals…
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Fed holds rates again, market surges and broadcom shines
Dec 17th, 2023 – In a resolute move, the Federal Reserve has maintained its interest rates for the third consecutive meeting, with Chairman Jerome Powell indicating that the benchmark rate is likely peaking for this tightening cycle. Presently, the rates stand at their highest since 2001, fluctuating between 5.25% and 5.50%. Powell anticipates a shift in 2024, hinting at three potential rate cuts, with more expected in 2025 and 2026. This announcement was well-taken by the US stock indices, marking their seventh consecutive week of gains. The S&P 500 closed at its highest since January 2022, Dow Jones has reached…
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AI’s Impact on Employment: Evolving Work Dynamics and Human-Centered Approaches
Dec 16th, 2023 – Recent statistics suggest a surge in AI-driven layoffs, with 37% of surveyed businesses reporting AI replacing workers in 2023 and 44% projecting future job cuts due to AI efficiency in 2024. However, this article aims to explore beyond headline figures, acknowledging discrepancies in technological adoption among businesses and underscoring the transformative potential of AI in reshaping job roles and organizational structures. Experts suggested avoiding direct alarmist interpretations of these statistics. Julia Toothacre from ResumeBuilder highlights the disparity in technology adoption among businesses, noting that smaller and traditional enterprises might not fully embrace AI. Moreover, insights from…
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S&P 500 LOSES GROUND AND INTEL LAUNCHES A NEW GENERATIVE AI CHIP: GAUDI3
Dec 15th, 2023 – Friday’s indices performances: Nasdaq closed at 14813.92 (+0.35%), S&P 500 at 4719.19 (-0.007%) and Dow Jones at 37305.16 (+0.15%). Intel (46.16, +2.17%) unveiled its new computer chips on Thursday, including Gaudi3, a chip for Generative AI software. Intel will launch Gaudi3 next year and it will compete with NVIDIA’s and AMD’s chipset and Intel is hoping with this new product to gain an important market share in the Generative AI sector, that for now has been dominated by NVIDIA. Colgate-Palmolive’s rating has been upgraded by Bank of America to buy from neutral, and its target price…
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Stocks rise as investors brace for peak season
Dec 14th, 2023 – The Dow Jones closed higher on Thursday at 54.23 with a growth of 0.43%. The S&P also grew, closing at 4,719.55 adding 0,26%, while the Nasdaq gained 0.19% to 14,761.56. GM’s stock (GM) jumped 5% after the announcement that Cruise is laying off 900 employees, about 24% of its workforce. The layoff consists mostly of commercial operations and related corporate functions. It comes as a consequence of the October 2nd accident, when a pedestrian was dragged 20 feet by a Cruise self-driving car after being hit by another vehicle. The layoff came just one day after…
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Indices jump on dovish statements from the Fed
Dec 13th, 2023 – On Wednesday, the Dow Jones increased by 1.4%, closing at 370,090.24. The S&P 500 increased by 1.37%, closing at 4,707.09. Also, the Nasdaq had an increase of 1.38%, closing at 14,733.96. All of them hit their 52-week highs. The Federal Reserve held the rates steady as expected. For the first time, the Fed admitted that inflation has eased over the past year and they also signaled upcoming rate cuts for 2024. Fed officials see core inflation falling to 3.2% in 2023 and 2.4% in 2024. The producer price index (which measures inflation before it reaches consumers),…
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Oracle’s negative results worry analysts, while Hasbro Job Cuts lead to a decrease in its stock price, whilst Google’s power is in danger
Dec 12th, 2023 – Today’s market performance of portfolio holding Oracle (ORCL) (0.4 units @111.10) was characterized by a huge sell-off, which caused a remarkable percentage decrease in the stock price of -12.44%. This was mainly due to the negative reaction investors had in regards to Oracle’s results for the second quarter of its current fiscal year. Not only did sales for the period largely miss the target set by analysts by around $110 million, but revenue from key sectors like cloud services and license support also rose only by 12%, compared with the same period of the previous fiscal…
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Macy’s shares surge after acquisition bid of $5.8 Billion
Dec 11th, 2023 – The real-estate investment firm “Arkhouse Management” and the asset manager “Brigade Capital Management” have jointly proposed a $5.8 billion acquisition of Macy’s; neither the two key investors nor Macy’s have publicly commented yet, the news comes from the Wall Street Journal, which reported it first. The offer, valuing Macy’s shares at $21 per share, represents a premium over the closing price of just $17 a share on Friday, although the stock had seen a significant decline, around 17%, from the beginning of 2023. The well known American department store chain is facing many challenges in competing…
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AI regulations get approved, as Oracle gains traction
Dec 9th, 2023 – EU Approves Regulations for Artificial Intelligence The European Union recently agreed on comprehensive regulations to oversee the realm of artificial intelligence (AI).During the discussions among key EU institutions, considerable focus was placed on technologies like ChatGPT, and the use of biometric identification tools such as facial recognition and fingerprint scanning. Differing viewpoints emerged among countries like Germany, France, and Italy. These nations advocated for a more indirect approach, preferring self-regulation by the responsible companies, although guided by government-introduced codes of conduct. Their concern primarily centered on the potential negative impact of stringent regulations on Europe’s competitiveness…
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What is risk: How is financial risk evaluated
Risk is one of the main features that characterizes the entire financial world, and it heavily influences the type of security that investors will invest into as well as the particular kind of strategy they will follow while doing it. With respect to this last concept, it is important to know that risk is strongly correlated with the return on an investment. In fact, the potential return on a particular investment increases as the risk that affects that operation grows. This also means that, in the worst case scenario, the potential loss will be considerably higher. The standard deviation is…
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A positive Friday on Wall Street while the CMA keeps an eyes on Microsoft and OpenAI
Dec 8th, 2023 – Friday’s indices performances: Nasdaq closed at 14403.97 (+0.45%), S&P 500 at 4604.37 (+0.41%) and Dow Jones at 36247.87 (+0,36%). The UK’s Competition and Markets Authority (CMA) is reviewing the multi-billion partnership between Microsoft and OpenAI, examining if it constitutes a merger situation and potential control acquisition. Following this partnership, Microsoft has now a seat in OpenAI’s board, but it is a non-voting position. The main reason why the CMA has started an investigation is because, as the CMA itself said, there have recently been a number of developments in the governance of OpenAI, some of which…
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Stocks end losing streak, with AI giants reaping rewards from new products
Stocks grew this Thursday, allowing the Dow Jones and S&P 500 to break three-day losing streaks. The Dow Jones closed at 36.117,38 (+0,17%), the S&P 500 closed at the height of 4.585,89 (+0,80%) and, lastly, Nasdaq grew the most, closing at 14.339,99 (+1,37%). Alphabet (GOOG) (0.8 units @ 133.93) shares jumped 5%, following the announcement of the Gemini AI model, which will compete with products from OpenAI, Microsoft and Meta. The stock is on pace to reach its best day since Aug 29, despite questions on whether the company will monetize the technology. Executives said Gemini outperforms OpenAI’s GPT-3.5, but…
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Decline continues, as Google and Nvidia make announcements
On Wednesday, the Dow Jones decreased by 70.13 points, marking a 0.19% decline, ending the day at 36,054.43. The S&P 500 experienced a 0.39% decline, closing at 4,549.34, and the Nasdaq Composite fell by 0.58% to 14,146.71. Job openings decreased by 6.6% to 8.7 million in October, below the estimated 9.4 million, marking the lowest level since March 2021. The data fueled expectations of a loosening in the hot labor market. Due to declines in mortgage rates, the demand for refinancing home loans increased by 14% from the previous week. Portfolio holding, Google (GOOG) (0.8 @ $133.93), announced its largest…
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Nio benefits from its earnings reporting, while Moody’s downgrades China and Eli Lilly innovative drug hits weight loss markets.
Nio Inc. (NIO) seized the attention of market operators worldwide after today release of its Q3 earnings reporting. The main feature of the document was a remarkable decrease in losses per share, dropping from 0.52$ in the second quarter to 0.37$ at the current exchange rate between CNY and USD. Also, Q3 LPS were lower than the expected value (0.41$), even though revenue failed to meet expectations (total reported value of 2.7B$ against 2.72B$ estimated). Thanks to this achievement, investors’ expectations about Nio’s future profitability improved a lot, with its shares price recording a percentage increase of +1.5% just before…
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Stocks of Spotify and Uber jumped after weekend news played out today
Today, Spotify (SPOT) announced a 17% cut to their workforce. The CEO, Daniel Ek, sent an email to its staff, explaining the reasoning for his move: the company wanted to significantly reduce its team size as a “hard but crucial step towards forging a stronger, more efficient Spotify for the future”. Indeed, he said that Spotify was taking a fundamental action to reduce costs, and added that the company took on way too many employees in 2020 and 2021, when capital was cheap and team expansion was an attractive investment. The music streaming service aims at being the world’s leading…
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Paramount and Apple: Potential Collaboration, Google Targets Microsoft, and Robinhood Debuts in the UK
Dec 3rd, 2023 – The stock of Paramount Global (PARA) experienced a 9% increase, while Apple (AAPL) (0.6 units @ 183.96) shares rose by 0.7% after reports emerged of discussions between the two companies regarding a potential collaboration in bundling their streaming services. The Wall Street Journal revealed that the talks involve creating a combined offering of Paramount+ and Apple TV+ at a lower cost than subscribing to them separately. The negotiations are still in the early stages, and the specific details of the potential deal are unclear. Shares of Alphabet (GOOGL) (0.8 units, @133.93) that is as now the…
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Powell’s Remarks on Interest Rates and Pfizer weight loss pill flop
Jerome Powell, Chairman of the Federal Reserve, recently discussed the topic of interest rates and inflation, cautioning against premature aggressive rate cuts. He suggested keeping policy restrictive until there’s certainty that inflation is on a clear path back to the 2% target set by the Federal Open Market Committee (FOMC). Even though current policy remains restrictive, Powell highlighted a balance between combating inflation and preventing economic slowdown. His comments had a positive impact on markets, with stocks climbing on Wall Street and Treasury yields dropping sharply. The rise of interest rates by the Federal Reserve in response to high inflation…
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Dow Jones and S&P 500 reach a New – Year high, as Tesla struggles with the Cybertruck
Dec 1st, 2023 – It was a very positive Friday for the US indices, as the Dow Jones (36245.50, +0.82%) and the S&P 500 (4594.63, +0.59%) both reached their highest value of the year. Nasdaq went also really close to its year-highest closing at 14305.03, with a 0.55% gain. Alibaba shares lost more than 1% on Friday as Morgan Stanley analysts downgraded shares to equal weight from overweight, and also massively reduced the target price from $90 per share to $20. Alibaba was expected to change their core business with the spinoff of their cloud business, which has not happened…
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Dow rises, as Salesforce tops estimates
Nov 30th, 2023 – Thursday was a good day for the markets, with the S&P growing 0.38%, NASDAQ by 0.25% and Dow Jones by 1.47%. European markets closed higher this Thursday rounding off the month as investors assessed inflation data in the Eurozone, suggesting pressure from rising prices is easing. The regional Stoxx 600 closed up 0.5% at a 10-week high. (J.Reid) Salesforce’s (CRM) stock climbed 7.4% after October-quarter earnings topped estimates, as the cost cutting process improved profit margins while revenue met views. Guidance for CRM stock came in over the expectations despite the rise in CRM over the…
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As markets fall, we’re hit with less hawkish statement from Fed governor
Nov 29th, 2023 – On Wednesday, markets closed the day with a decrease in the S&P500 and Nasdaq by 0.09% and 0.16% whereas Dow Jones closed near flat with an increase of 0.04%. Fed Governor Christopher Waller, who is known as a hawkish figure expressed his confidence in the current policy’s ability to bring back the inflation the the 2% target. The third quarter’s gross domestic product increased at a faster rate than anticipated, rising to 5.2% annualized growth, according to figures released on Wednesday. Changes to government expenditure and investments in nonresidential structures were the main sources of the…
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What makes a company increase in price after they beat earnings?
Stocks’ prices are affected by many factors that cannot be controlled all at once, mainly we can think about the most influential ones as a group of how investors feel about that certain stock. Earnings reports must be published by publicly traded companies in the U.S on a quarterly and on an annual basis. These reports are official financial documents issued by the company itself that shows expenses, earnings and overall profit in a certain period. They provide a periodic update of a company’s financial statement along with an income statement, cash flow statement and balance sheet. Investors can use…
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BFF bank performance impresses analysts as Leonardo develops its helicopter business worldwide and Amazon and Toyota efforts aren’t rewarded.
Nov 28th, 2023 – Today marked a very important moment in Bff Bank’s (BFF) history, as its stock price rose to the highest level ever since the Italian company went public in 2017. In fact, BBF closed at 10.43€ today, with a daily percentage increase of 5.14%. Also, Mediobanca’s research confirmed the outperform rating of BFF shares, mainly due to the advantages the bank gained through the approval of an european regulation regarding payment delays. Leonardo (LDO) just signed a very remunerative agreement with Omni Helicopters International, according to which the italian company will deliver 2 AW189 and a AW189K…
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Tesla sues Sweden: The potential impact at the European Level
Nov 27th, 2023 – Tesla has filed a lawsuit against the Swedish Transport Agency after postal workers of the country stopped delivering license plates connected to the U.S. carmaker: the company claims that such negligent behavior constitutes an “illegal and discriminatory attack”. However, the legal action filed on the 27th of November, is part of a broader conflict between the carmaker and the Swedish unions. The tension between the two started coming out a month ago, on October 27, when 130 members of the powerful Swedish metalworkers’ union “IF Metall”, went on strike at seven workshops across the country advocating…
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Apple’s Singles Day, Deere’s Guidance, and Coinbase’s Bitcoin Surge
Nov 26th, 2023 – Portfolio holding Apple (AAPL)(0.6 units @ 183.96) shares dropped by 1% Friday, as iPhone sales during China’s 2023 Singles Day fell 4% from the previous year. Singles’ Day is a major global online shopping event, comparable to Black Friday and Cyber Monday in the U.S. Apple trailed behind local competitors Huawei and Xiaomi, with the latter experiencing a 66% sales increase. iPhones contribute nearly 50% to Apple’s total revenue. Investors closely monitor iPhone sales, and the global smartphone market rebounded in October, driven by releases like Huawei’s Mate 60 and Apple’s iPhone 15, marking the highest…
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Expected shift in investment strategies for 2024
Nov 25th, 2023 – Ahead of the coming year, a possible shift in investment strategies has been discussed, particularly in relation to fixed income products like bond funds and cash. Despite investors favoring these options due to higher interest rates and sticky inflation, experts suggest reconsidering these allocation strategies, in anticipation of potential changes in interest rates. Money market funds have attracted significant investments this year, approximately $1.2 trillion flowed into them, far surpassing the inflows into bond and equity funds. However, Matt Bartolini, head of research at SPDR Exchange Traded Funds, foresees a potential reduction in the popularity of…
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SP rises $2.72 locking in 4 weeks straight of gain, as Nvidia delays H20 chip to 2024
Nov 24th, 2023 – Today’s indices performances: Nasdaq closed at 14,250.85 (-0.11%), S&P 500 at 4,559.34 (+0.06%) and Dow Jones at 35,390.15 (+0,33%). Portfolio holding Nvidia (NVDA) (0.215 units @ $462.20) shares fell 1.93% today after international news organization Reuters reported that they will delay to Q1 2024 the launch of their new AI chip H20, that was developed to be sold to Chinese companies while complying with US export restrictions. H20 is being delayed due to issues server manufacturers are having in integrating the chip, as Reuters’s source said. The delay could have negative consequences for Nvidia’s performances in…
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Introduction to the stock market
WHAT IS A STOCK? A stock (or share) is a share in the ownership of a company, which means that every shareholder has ownership of the company in proportion to his share. If the company is a listed company, its shares are sold in the stock market. The stock market is the place where shares of public companies are bought and sold by retail and institutional investors. If you have shares of a corporation, you can participate to shareholders meetings and vote, receive dividends (if the company distributes them), and you can sell the shares to somebody else. Stocks change…
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Comapnies lower expectations as negative macro data is unveiled
Nov 23rd, 2023 – Today the New York Stock Exchange is closed, as it is Thanksgiving Optimism towards Black Friday, happening this week, is decreasing as retailers cast doubt on holiday spending. Many companies reduced their outlooks or forecast after dynamics of a slowdown in spending came to light. There’s a widespread sense of uncertainty in consumer spending, after months of persistent inflation, which cast an overwhelming feeling of volatility and lack of confidence in consumer markets. This comes around just at the beginning of holiday spending, which in the last years saw an incredible growth following expansionary fiscal and…
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Yield rates continue falling, as Investors grow optimistic about Fed being done rising rates
Nov 22nd, 2023 – On Wednesday, Dow Jones gained 0.53%. The S&P 500 climbed 0.41%. Nasdaq composite increased by 0.46%. Yield rates fell to the lowest level since September! On Wednesday morning, the yield on the 10-year Treasury dropped to 4.369%. Later on, it bounced back and was last trading at 4.433%. The investors remained optimistic about FED not raising the interest rates in December. However, the FED indicated that they are decisive on keeping the restrictive monetary policy, which means that a rate cut is not expected any time soon. One of our Portfolio holdings, NVIDIA (NVDA) (0.215 @467.57)…
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Types of valuation methods
As our second educational article, the portfolio management division decided to introduce the topic of value analysis. There are many ways to analyze the value of a company; some serve the purpose of obtaining a figure representing the total value of a firm, whilst others are purely for the use of traders and retail investors, like us. Today, we will look into three different types of analysis: discounted cash flow modeling (a.k.a. DCF), comparative analysis and then fundamental analysis. Discounted Cash Flow Modelling: Discounted Cash Flow models are used to value companies based on how much cash they will generate…
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Portfolio holding rises following newly signed contract
Nov 21st, 2023 – One of the main news related to the US defense sector today is the 27 million dollars contract, signed by the joint venture Bell-Boeing (TXT/BA), according to which the two companies will provide platform engineering assistance during the development of the V-22 aircraft in Texas and Pennsylvania. Thanks to this important agreement, Boeing’s stock price rose by 1.05% tuesday. A 3.6% growth was recorded by Metallic Minerals Corp. (MMG) shares. This change in price was mainly due to an important project carried out by the company: acquiring the Khoemacau copper mine and its previous owners, Cuprous…
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The upheaval at OpenAI and Mastercard’s effort against Cryptocurrency fraud
Nov 20th, 2023 – The world of artificial intelligence looks very different today, indeed, after the extraordinary upheaval at OpenAI of the weekend, Microsoft (MSFT), the OpenAI’s biggest investor, announced on Sunday night that it would have hired Mr. Altman, the former CEO of the AI giant, to run a new advanced research lab. Microsoft late-night announcement restored its stock price, which had dropped after Friday’s news: Altman’s hiring can be considered as a major win for Microsoft and should lead to further gains for stock. The massive shakeup of the weekend affected Nvidia (NVDA)(0.215 units @ $462.20) as well…
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Sam Altman’s possible return, Inflation Concerns, and AI Advancements.
Nov 19th, 2023 – Sam Altman this morning unexpectedly published on twitter: “I am so back.” Hinting at a possible return, following the news that a day after OpenAI’s board of directors fired him, in a shock development, Investors in OpenAI are considering a countercoup to reinstate the former CEO. Venture capital firms, in collaboration with Microsoft (MSFT) and OpenAI employees, are exploring strategies such as a mass revolt by senior researchers, withholding cloud computing credits, and potential lawsuits to pressure the current management. The Federal Reserve’s battle against inflation might not be over, despite market optimism. Susan Collins, President…
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Transparency troubles at OpenAI lead to Sam Altman’s exit as CEO
Nov 18th, 2023 – OpenAI’s CEO Sam Altman will step down and be temporarily replaced by Mira Murati due to concerns about his lack of transparency with the board, which has expressed a loss of confidence in his leadership. With the acknowledgment of the change Greg Brockman resigned as chairman but confirmed his role in the company, reporting to the CEO. Despite OpenAI’s recent success with ChatGPT and its significant funding from Microsoft, Altman’s exit led to Microsoft’s shares declining. The market reaction reflected concerns or uncertainties about the future of the partnership between Microsoft and OpenAI under new leadership.…
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UAW finish deal with GM to end strike
Nov 17th, 2023 – It was a positive day for the US stock market: Nasdaq closed at 15837.99 (+0,03%), S&P 500 at 4514,02 (+0,13%) and Dow Jones at 34947,28 (+0,0052%). One of the biggest news today is that union workers at General Motors (GM) have agreed to the deal proposed by the United Auto Workers (UAW), according to results posted by the union, by a fine margin (54.7% yes). The deal was about the strike of GM workers that started in September after unsuccessful negotiations with the company for the contract renewal. Workers demanded higher salaries and improvements to working…
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General tumble after few good days
Nov 16th, 2023 – Many stocks fell today after prospects of sales didn’t meet expectations, however some grew after good quarters results, with the S&P closing at 4.508,24 points (+0,12%), the NASDAQ at 14.113,67 (+0,07%) and lastly Dow Jones a decreasing at 39.945,47 (-0,13%). Portfolio holding Palo Alto Networks (PANW) (0.2 units @ $245.03) dropped 6% after hours following the announcement of a billing climb of 16% instead of the expected 18%, despite surpassing expectations on earnings and closing at -5,42%.(R.Krause) Burberry (BRBY) sank almost 10%, making its biggest one-day percentage loss since September 2022, after the announcement that it…
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Stocks rise Wednesday, as Wall Street looks to D.C.
Nov 15th, 2023 – Stocks started with an increase to Wednesday, S&P 500 with 0.3%, Nasdaq with 0.2%, and Dow Jones with 0.6%. The day following a favorable consumer price index report, which increased investor’s expectations on FED being done, raising rates were supported by Today’s data on the producer price index, which showed a decrease of 0.5% in October, contrasting with the expected 0.1% increase. Of the 11 S&P sectors, eight were in positive territory, led by Materials and Energy. Utilities, Consumer Discretionary, and Health Care were the three losers. Wall Street is also closely monitoring developments in Washington, where lawmakers are working to prevent a government shutdown. The next step is for…
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US inflation decreases, as AirBnb overcomes its worst period so far and Italian stock market soars
Nov 14th, 2023 – Today, among the top-performing companies on FTSE MIB there was Diasorin, one of the main Italian corporations that operate in the biotechnological sector. In fact, stock price closed at 91€, with an increase of 6.88% from the starting level after a relevant news regarding its management was released to the public: Diasorin CEO Carlo Rosa was found not guilty after he was accused of committing insider trading during the 2020 Covid lockdown in Italy, favoring a small group of investors. October was not one of the best performing months for Airbnb, considering its legal troubles in…
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Portfolio Holdings move following announcements
Nov 13th, 2023 – Stocks moved lower at the beginning of the day, following a US outlook downgrade by Moody’s, from stable to negative (Mercado). The broad market index (S&P 500) slipped 0.08%, the Nasdaq also ended the day 0.22% lower, however the Dow Jones rose 0.16%. Portfolio holding Nvidia (NVDA) (0.215 units @ $467.57) added 0.59$ after it announced its most recent AI chip. The H200 chip, twice as fast as the previously unveiled H100. This is the chip that a lot of firms have been waiting on to further improve their own artificial intelligence, so this rise in…
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New agreements and new results in the market meanwhile the Israel-Hamas conflict doesn’t
Nov 12th, 2023 – Oracle (ORCL,0.4 units) and Microsoft (MSFT) have entered into a multi-year agreement to enhance artificialintelligence (AI) services. Microsoft is leveraging Oracle Cloud Infrastructure (OCI) alongside Microsoft Azureinfrastructure for AI model inference, powering Bing’s everyday conversational searches.. This collaborationenables Oracle to empower new global experiences, improving access and speed for Bing’s search resultsthrough the combined use of both AI infrastructures.Novo Nordisk (NVO, 1 unit) announced the primary results of SELECT, its landmark cardiovascular outcomes trialinvestigating the effects of once weekly semaglutide 2.4 mg in adults with established cardiovascular andoverweight disease. The trial shows a groundbreaking 20% reduction…
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The obesity drug market and the Fed’s perspective on inflation
Nov 11th, 2023 – This week AstraZeneca has entered into the obesity drug market by acquiring ECC5004, an experimental weight-loss pill, sparking competition with Eli Lilly and Novo Nordisk. Although AstraZeneca’s move initially impacted Eli Lilly’s stock negatively, the company maintains a first- mover advantage with a more sophisticated obesity pill in development. The GLP-1 drug market, known for blood sugar control and weight loss, is lucrative, and Eli Lilly’s robust pipeline, including orforglipron, is highlighted. Analysts frame the competition between Eli Lilly and Novo Nordisk as a “market-creation” dynamic, possibly leading to a structural duopoly in the obesity drug…
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Nvidia rises again after solution to China restrictions is found.
Nov 10th, 2023 – Groupon shares tumbled 39.5%, a day after the company posted their third-quarter results that were not matching with analysts’ expectations. The company’s CEO also admitted that the business continues to be challenged, but he also added that he is pleased that there is an improvement in the financial performance of Groupon. Plug Power shares lost more than 40% of their value today after third-quarter results missed analysts’ estimates. The hydrogen fuel cell developer issued a going concern notice about its potential inability to fund operations over the next year. The main reasons behind this collapse are…
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Shares rise as yields stabilise
Nov 9th, 2023 – Shares rose again today, following a stabilization in Treasury Yields. The Dow Jones climbed 1.15%, the S&P 500 instead climbed 1.56%. The tech heavy NASDAQ however added 2.05%, giving it its best day since May. Groupon shares tumbled 34.82%, a day after the company posted their third-quarter results, which didn’t match analysts’ expectations. The company’s CEO also admitted that the business continues to be challenged, but he added that he is pleased there is an improvement in the financial performance of Groupon. Plug Power shares lost more than 40.47% of their value today after third-quarter results…