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Is a new bull market incoming?

Markets

Nikkei 225

32,434.00

▲ +168.83 / +0.52%

SSE Composite

3,228.83

▼ -2.57 / -0.08%

IBOVESPA

117,534.85

▲ +515.38 / +0.44%

Straits Times

3,196.07

▲ +9.10 / +0.29%

BMV IPC

54,467.32

▼ -44.82 / -0.08%

Dow Jones

33,920.49

▲ +43.71 / +0.13%

DAX 30

16,082.47

▲ +132.63 / +0.83%

BSE SENSEX

62,724.71

▲ +99.08 / +0.16%

FTSE 100

7,570.69

▲ +8.33 / +0.11%

JSE Top 40

70,968.68

▼ -633.39 / -0.88%

Last Week’s Highlights

Tesla and GM in a EV charging partnership

Tesla shares rose 4% after General Motors (GM) teamed up with Ford to use Tesla’s electric vehicle charging network, which could make Tesla’s Superchargers an industry-standard in the United States. This partnership ensures that more than 60% of the country’s electric vehicle market can access Tesla’s North American Charging Standard (NACS) network, making it the leading charging network in the United States. The White House announced that charging stations using Tesla standard plugs will be eligible for federal subsidies if they also include the American Charging Standard connection, CCS. This news harmed the shares of independent charging companies such as ChargePoint Holdings, EVgo, and Blink Charging, which closed lower. It is estimated that Ford and GM could add $3 billion to Tesla’s revenue from charging services in the coming years. However, the increased use of Tesla’s Superchargers could pose challenges for the company in terms of capacity and competition with other charging networks.

Adobe jumps on an upgrade from Wells Fargo

Adobe shares experienced a boost after Wells Fargo Securities upgraded its recommendation and set a new price target of $525. This upgrade is attributed to Adobe’s artificial intelligence (AI) advancements, such as Sensei GenAI and Firefly, which streamline the content supply chain. Analysts believe these advances strengthen Adobe’s position in the digital media industry and position it well to benefit from the early adoption of AI applications in enterprises. In addition, Adobe’s strong profitability metrics are expected to contribute to further growth and performance. Although analysts have a moderate buy rating on Adobe stock, the average price target implies a potential downside of 3.51%.

Coming Up This Week

Target dips after Citi downgrade

Target shares fell after Citi downgraded its recommendation from “buy” to “neutral” due to declining store traffic and competition from Walmart. Citi adjusted the price target from $177 to $130. Target’s sales are expected to decrease in 2023 due to stagnant growth seen between 2020 and 2022. Other analysts, such as Christopher Horvers of J.P. Morgan, also downgraded the stock due to the company’s reliance on discretionary sales and millennial customer base. Despite the concerns, analysts generally maintain a moderate buy rating, with an average price target implying an upside potential of 39.17%.

Peloton subscribers come back

Peloton, the US media and exercise equipment company, is experiencing an uptick as some subscribers return and the churn rate stabilizes, according to data from Yipit. This means the company is no longer losing money and could start generating revenue again. This news falls like a glove for the company after suffering losses from cancelled orders when the gyms reopened. Analysts continue to back Peloton, with seven “buy” ratings, 11 “hold” and one “sell” rating, which translates into a “moderate-buy” valuation. In addition, the average price target for the stock is $11.75, representing a potential upside of 42.86%.

MARKET NEWS

Thanks to Tesla’s stock rally, the S&P 500 and Nasdaq indexes hit new highs so far in 2023. On Thursday, the S&P 500 posted an advance, resulting in a 20% increase from its Oct. 12 low. It rose 4.93 points, or 0.11%, to 4,298.86; this has been seen as the start of a new bull market, at least in the view of certain market participants.

For its part, The Nasdaq sealed its seventh consecutive week of gains, with an increase of 20.62 points, or 0.16%, to 13,259.14 on the day and 0.13% on the week. Finally, the Dow Jones gained 43.17 points, or 0.13%, to 33,876.78 for a weekly gain of 0.33%.
Keep on buying Nvidia stock, says J.P. Morgan.

More Things to Sip On…

Netflix rallies as password sharing crackdown boosts subscriber growth.
Canadian wildfires crank up natural gas usage.
The Fed’s upcoming move in the crypto roundup.

FlexACADEMY

An investment in knowledge pays the best interest.

– Benjamin Franklin –

Disclaimer
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