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Nikkei 225
38,898.50
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SSE Composite
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▲ +128 / +0.10%
Straits Times
3,318.45
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BMV IPC
55,414.95
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Dow Jones
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DAX 30
18,761.61
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BSE SENSEX
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FTSE 100
8,317.59
▼ -21.64 / -0.26%
JSE Top 40
72,559.40
▼ -186.66 / -0.26%
Last Week’s Highlights
Ross Stores beats quarterly estimates
Ross Stores’ stock price surged 7.89% following its first-quarter results, which exceeded estimates. The company also raised its annual profit forecast. Sales experienced a recovery amidst moderating inflation and a strong response to its value offerings. The company’s results mirrored those of off-price peer TJX Cos, which also posted better-than-expected first-quarter results and raised its annual profit forecast. Ross Stores’ sales for the quarter ended May 4 were $4.86 billion, above analysts’ average estimate of $4.83 billion, and it earned $1.46 per share compared to expectations of $1.35. The company maintained its fiscal 2024 comparable store sales forecast at a 2% to 3% rise and adjusted its profit per share range to $5.79 to $5.98.
PDD Holdings is up on new upgrade
PDD Holdings’ stock has seen an upgrade from Hold to Buy by Goldman Sachs after a significant revenue surge in the first quarter. The price target for PDD was raised from $145 to $184. Despite impressive growth, the stock trades at a relatively low price-to-earnings ratio, possibly due to concerns about Chinese stocks. Analysts have a Strong Buy consensus rating on PDD stock with an average price target of $223.34, indicating a 41.42% upside potential.
Coming Up This Week
China creates a billionaire chip fund
In the ongoing technological and geopolitical competition between the U.S. and China, both countries are heavily investing in their semiconductor industries. China has established a $47.5 billion chip fund, known as Big Fund III, while the U.S. has passed the 2022 Chips and Science Act, providing grants and loans totaling billions of dollars to chip producers. This competition extends to other areas, including China’s actions in the financial market and efforts to achieve self-reliance in various sectors. The developments could potentially impact major tech companies such as NVIDIA, Micron, and Taiwan Semiconductor. Despite this, NVIDIA’s shares are currently showing the highest potential upside, with analysts maintaining a Strong Buy consensus rating.
Workday cut its annual subscription forecast
Workday’s stock price dropped by 15.33% after the company cut its annual subscription revenue forecast due to concerns about lower customer headcount growth, a hiring slowdown, and IT budget cuts. The company’s subscription revenue for fiscal year 2025 is expected to be in the range of $7.70 billion to $7.73 billion, down from its prior forecast. Workday’s total revenue for the first quarter ended April 30 was $1.99 billion, with subscription revenue rising by 18.8% to $1.82 billion.
