Why AI stocks are down, plus 3 names Morgan Stanley likes heading into earnings
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Top Research Reports for NVIDIA, Netflix & Goldman Sachs
Friday, July 25, 2025 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), Netflix, Inc. (NFLX), and The Goldman Sachs Group, Inc. (GS), as well as a micro-cap stock, AMREP Corp. (AXR). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today's research reports here >>> Ahead of Wall Street The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning. You can read today's AWS here >>> Pre-Markets Moderate in the Green for Another Up-Week NVIDIA's shares have outperformed the Zacks Semiconductor - General industry over the past year (+54.7% vs. +45.3%). NVIDIA is benefiting from the strong growth of artificial intelligence (AI) and high-performance, accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA's Hopper and Blackwell architectures is aiding data center revenues. However, a limited supply of Blackwell GPUs could hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins. (You can read the full research report on NVIDIA here >>>) Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+87.0% vs. +66.6%). Netflix delivered strong second-quarter results with earnings of $7.19 per share (beating estimates by 1.7%) and revenue of $11.07 billion (up 16% YoY). The quarter was highlighted by Squid Game S3 becoming the company's sixth biggest season ever with 122M views. Operating income surged 45% to $3.8 billion with margins expanding to 34% from 27% last year, driven by price increases and low churn rates. Netflix raised its full-year 2025 revenue guidance to $44.8-$45.2 billion and increased operating margin targets to 29.5%. (You can read the full research report on Netflix here >>>) Goldman Sachs' shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+44.1% vs. +39.8%). The company's second-quarter 2025 results benefited from solid growth in the Global Banking & Markets division. Its refocus on the core strengths of investment banking (IB) and trading businesses through restructuring, along with acquisitions and expansion in private equity credit, is expected to boost global presence and diversify revenues. However, given the current geopolitical concerns, Goldman's high dependence on overseas revenues is worrisome. Also, the company's rising expenses due to ongoing investments in technology are concerning. (You can read the full research report on Goldman Sachs here >>>) Shares of AMREP have outperformed the Zacks Real Estate - Development industry over the past year (+2.7% vs. -14.1%). AMREP's net income surged 246.5% to $8.8 million for the nine months ended Jan. 31, 2025, with earnings per diluted share rising from $0.48 to $1.64. Home sales revenue grew 93.3% to $18.4 million, supported by strong demand in New Mexico, with 101 homes in production. However, elevated mortgage rates and affordability concerns may pressure future growth. AMREP faces risks from land sale concentration, project delays, and declining investment asset sales, impacting growth sustainability. (You can read the full research report on AMREP here >>>) Other noteworthy reports we are featuring today include AstraZeneca PLC (AZN), Gilead Sciences, Inc. (GILD), and Snap Inc. (SNAP). Mark VickerySenior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Netflix (NFLX) Rides on Subscriber Growth, Original Content Strength in IB Business Aids Goldman (GS) Amid Cost Woes Featured Reports Key Drugs Aid AstraZeneca (AZN) Sales, Pipeline StrongAstraZeneca's key drugs like Lynparza, Tagrisso, Imfinzi and Farxiga should continue to drive sales. Per the Zacks analyst, its pipeline is strong, with pivotal data readouts lined up. HIV Franchise Fuel Gilead (GILD) Amid Oncology ChallengesPer the Zacks analyst, Gilead's strong momentum in HIV franchise and Liver disease franchise drive growth for the company. However, the Cell therapy franchise is facing challenges. Strategic Investments, Acquisitions Aid California Water (CWT)Per the Zacks analyst, California Water's infrastructure investments should help it provide reliable services. It gains from the expansion of operations through acquisitions and organic activities. Kirby (KEX) Benefits From Share Buyback Amid Rising ExpensesPer the Zacks analyst, rewarding shareholders through share buybacks boosts investor confidence and positively impacts Kirby's bottom line. Rising expenses continue to act as a concern. Subscriber Strength Aids America Movil (AMX) Amid Tariff WoesPer the Zacks analyst, increasing user count and widespread revenue growth across all business units and regions are driving America Movil's performance. U.S.-imposed tariff uncertainty concerns. Casey's (CASY) Grocery & General Merchandise Unit to Fuel Sales Per the Zacks analyst, expanded assortment of Grocery & General Merchandise category are likely to fuel Casey's sales. The segment recorded same-store sales growth of 1.8% in the fourth-quarter. Walgreens (WBA) Gains on U.S. Retail Growth, New LaunchesThe Zacks analyst is upbeat on Walgreens' U.S Retail Pharmacy's turnaround, driven by new strategic merchandising initiatives and omni-channel expansion. Recent product launches also seem strategic. New Upgrades EchoPark Segment Strength Aids Sonic Automotive (SAH)EchoPark posted record Q2 income, emerging as Sonic's key growth driver. The Zacks analyst sees its data-driven inventory strategy and refined business model powering continued momentum ahead. Tenet (THC) to Gain From USPI Strength & Strategic DivestmentsPer the Zacks analyst, the rising surgical cases in the USPI business will drive Tenet Healthcare's performance, while divestments will help allocate capital to higher-return investments. Solid User Growth & Premium Content Demand Aids Snap (SNAP)Per the Zacks analyst, Snap benefits from an improving user growth driven by strong adoption of Augmented Reality (AR) Lenses and demand for premium content including Shows. New Downgrades Core Lab's (CLB) Revenue Hurt by Ongoing Sanction & TariffsThe Zacks analyst believes that despite partial recovery in assay services in Q2, uncertainty still looms over Core's revenue due to ongoing geopolitical conflicts and sanctions & tariffs. Weyerhaeuser (WY) is Hurting From Macro Risks & High CostsPer the Zacks analyst, Weyerhaeuser's prospects are hurting from the ongoing global market uncertainties and elevated cost and expense structure. A pause on China export concerns its sales volume. High Costs & Macro Woes Ail BJ's Restaurants (BJRI) ProspectsPer the Zacks analyst, BJ's Restaurants operations are likely to be affected by food inflation and potential tariff-related margin pressures. Also, an uncertain macro environment pose concerns. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report AMREP Corporation (AXR): Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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Dan Ives Calls Microsoft 'Scottie Scheffler Of Software' Ahead Of Earnings — Says Satya Nadella-Led Cloud Giant Is Firing On All Cylinders In AI Boom
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Wedbush Securities analyst Dan Ives compared Microsoft Corp. (NASDAQ:MSFT) to world No. 1 golfer Scottie Scheffler ahead of the tech giant's fourth-quarter earnings release Wednesday after market close. What Happened: 'We expect more good news next week from Redmond as Nadella & Co. will deliver another robust quarter driven by the AI Revolution,' Ives wrote on X Friday. 'The Scottie Scheffler of software is firing on all cylinders as this cloud stalwart is front and center as the core AI enterprise foundation.' The comparison references Scheffler's dominant performance in professional golf. The 29-year-old American has held the world No. 1 ranking for over 100 weeks and won four major championships, according to the Official World Golf Ranking. Trending: 7,000+ investors have joined Timeplast's mission to eliminate microplastics— Microsoft trades at $510.80, with analysts setting a consensus price target of $551.07 based on 30 ratings. Citigroup issued the highest target at $613 while JPMorgan set the lowest at $475 in May. Ives maintains an Outperform rating with a $600 price target, calling it 'probably conservative.' He projects Microsoft will join Nvidia Corp. (NASDAQ:NVDA) in the $4 trillion market cap club this summer, with potential for $5 trillion within 18 months. Why It Matters: The Redmond-based company faces scrutiny over workforce decisions. Vice President JD Vance criticized Microsoft for laying off 9,000 American workers while increasing H-1B visa applications. CEO Satya Nadella addressed the cuts in an employee memo Thursday, saying the decisions 'weigh heavily' on him. Despite layoffs, Microsoft expanded its AI team by hiring approximately 24 employees from Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOG) DeepMind division. Ives expects over 70% of Microsoft's installed base to adopt AI functionality within three years, potentially adding $25 billion in revenue by fiscal 2026. Microsoft allocated $80 billion in capital expenditure guidance for fiscal 2025 to expand data center capacity and capitalize on AI demand trajectory. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image via Shutterstock This article Dan Ives Calls Microsoft 'Scottie Scheffler Of Software' Ahead Of Earnings — Says Satya Nadella-Led Cloud Giant Is Firing On All Cylinders In AI Boom originally appeared on
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Jensen Huang Says He's Created More Billionaires Than Any CEO: 'Don't Feel Sad For Anybody At My Layer'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. As the Donald Trump administration unveiled its AI policy plan, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang joined top Silicon Valley figures to weigh in on the cutthroat battle for AI talent and compensation during a live podcast in Washington, D.C. What Happened: Earlier this week, appearing on the All-in podcast alongside venture capitalists Chamath Palihapitiya and Jason Calacanis, Huang pushed back on concerns about executive-level compensation amid billion-dollar offers for AI researchers. During the conversation, Palihapitiya raised the point that AI researchers were being offered unprecedented contracts—one reportedly as high as $1 billion over four years from Meta Platforms Inc. (NASDAQ:META). He asked why similar valuations weren't seen at the CEO level, despite their role in enabling breakthroughs. "First of all, I've created more billionaires on my management team than any CEO in the world. They're doing just fine," Huang said. "Don't feel sad for anybody at my layer." Trending: 7,000+ investors have joined Timeplast's mission to eliminate microplastics— Huang also underscored the efficiency of small, well-funded teams in AI. "The impact of 150 or so AI researchers can probably create, with enough funding, an OpenAI. There's something about the elegance of small teams," he said. Later, Calacanis added levity, teasing Huang about rumors of a secret stash of stock options. "Somebody told me you just drop RSUs on people if they do a great job," he joked. "That's nuts," Huang responded, adding, "I review everyone's comp myself ... and I 100% of the time increase opex because you take care of people and everything else takes care of itself." Why It's Important: The discussion came during the Trump administration's unveiling of its AI Action Plan, a strategic initiative backed by a new wave of Silicon Valley. The fierce competition for AI talent has driven record compensation and high-profile hires across companies like Meta, Microsoft Corp. (NASDAQ:MSFT), OpenAI and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google DeepMind—often eclipsing executive salaries and reshaping the power dynamics in the tech world. Earlier this week, Alphabet CEO Sundar Pichai also dismissed concerns over an AI talent exodus, stating the company remains strong in attracting and retaining top AI experts. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Photo courtesy: jamesonwu1972 On This article Jensen Huang Says He's Created More Billionaires Than Any CEO: 'Don't Feel Sad For Anybody At My Layer' originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
