logo
Tesla Under Pressure, Big Tech Bolsters S&P 500

Tesla Under Pressure, Big Tech Bolsters S&P 500

Bloomberg2 days ago

Bloomberg's Caroline Hyde discusses the latest trade tensions between the US and China and the impact they are having on tech. Plus, Tesla is under pressure as sales fall aggressively in France, and Elon Musk pivots his focus back to the company. And, Big Tech is driving S&P 500 growth again. (Source: Bloomberg)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

An options strategy to maximize gains and minimize risk in this cloud AI winner
An options strategy to maximize gains and minimize risk in this cloud AI winner

CNBC

time28 minutes ago

  • CNBC

An options strategy to maximize gains and minimize risk in this cloud AI winner

Oracle (ORCL) is undergoing a resurgence fueled by its leadership in artificial intelligence services and robust growth in Oracle Cloud Infrastructure (OCI). With OCI emerging as a preferred platform for AI workloads, Oracle has secured major partnerships like the $500 billion Stargate project with OpenAI and SoftBank, positioning it as a key player in the AI revolution. ORCL's attractive valuation, strong profitability and recent breakout signal suggests significant upside potential — making it a compelling candidate for bullish exposure in a market recovery. Trade timing The timing for adding bullish exposure to ORCL is optimal, as the stock recently broke above its $155 resistance and bounced higher as it retested it as support. This breakout is coupled with outperformance relative to the S & P 500 with an upside target of $190, offering an attractive risk-to-reward profile for a long position. Fundamentals ORCL trades at a meaningful discount to its industry despite superior profitability and growth metrics, positioning it as an undervalued tech name with significant upside potential. Forward PE ratio: 24.5x vs. industry average 27.7x Expected EPS growth: 13% vs. industry average 11% Expected revenue growth: 13% vs. industry average 9% Net margins: 21.8% vs. industry average 9.8% Bullish thesis AI-driven resurgence : Oracle's OCI revenue grew 49% YoY to $2.7 billion in Q3 FY2025, driven by demand for AI workloads signaling a strong pipeline for AI and cloud contracts. Strategic AI partnerships : Oracle's role in the $500 billion Stargate project with OpenAI and SoftBank, alongside deploying over 131,000 Nvidia Blackwell GPUs, cements its position as a key player in AI infrastructure. Attractive valuation : ORCL trades at 24x forward earnings, below the Nasdaq-100's 27.5x, with projected revenue growth of 13% in FY2026 and 18% in FY2027, highlighting significant upside potential. Technical breakout : The breakout above $155, with an upside target of $190, confirms strong momentum and potential for further gains as investor confidence grows. The trade To capitalize on ORCL's potential upside, I'm buying an Aug. 15 $170/$190 Call Vertical @ $7.12 Debit. This entails: Buying the Aug $170 Call @ $11.15 Selling the Aug $190 Call @ $4.03 The maximum reward is $1,288 if ORCL is above $190 at expiration. The maximum risk is $712 if ORCL is below $170 at expiration. The breakeven point for this trade is $177.12. View this trade with updated prices at OptionsPlay. This strategy positions you to benefit from ORCL's potential rally, leveraging its technical breakout, AI-driven growth and undervaluation to profit from a high-quality tech name with defined risk. With Oracle's leadership in AI-related cloud services, this call vertical offers a compelling opportunity to capture upside potential in a thriving industry. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

Jimmy Fallon Can Tell Trump's Bill Is Bad ‘When It Makes Elon Musk Worry About Money'
Jimmy Fallon Can Tell Trump's Bill Is Bad ‘When It Makes Elon Musk Worry About Money'

Yahoo

time31 minutes ago

  • Yahoo

Jimmy Fallon Can Tell Trump's Bill Is Bad ‘When It Makes Elon Musk Worry About Money'

Jimmy Fallon is having fun in the aftermath of President Donald Trump and Elon Musk's rift. The 'Tonight Show' host started off his Tuesday night monologue by mocking both men over Trump's self-proclaimed 'big, beautiful bill.' 'Just days after leaving his official role at the White House, Elon Musk is blasting President Trump's big, beautiful bill as a disgusting abomination. And that's coming from the guy who made the Cybertruck,' Fallon joked. 'Elon said the bill will burden American citizens with crushingly unsustainable debt. You know the bill is bad when it makes Elon Musk worry about money,' the NBC host added. Fallon was referring to a post Musk recently put on X, where he called the bill a 'disgusting abomination.' That same post also called the bill 'massive, outrageous, pork-filled.' 'And Trump said, 'I don't know what you're talking about but I'll take two,'' Fallon joked. Musk ended his post by writing, 'Shame on those who voted for it: you know you did wrong. You know it.' He also wrote in other posts that this bill 'will drive America into debt slavery' and that 'in November next year, we fire all politicians who betrayed the American people.' The bill in question includes huge tax breaks as well as more spending on defense. It's been estimated that, if this bill passes, it will increase the budget deficit in the U.S. by $600 billion in the next fiscal year. It was passed by the House of Representatives last month and is currently being considered by the Senate. The post Jimmy Fallon Can Tell Trump's Bill Is Bad 'When It Makes Elon Musk Worry About Money' | Video appeared first on TheWrap.

Musk Escalates Megabill Attacks, With Trump Reportedly ‘Furious'
Musk Escalates Megabill Attacks, With Trump Reportedly ‘Furious'

Yahoo

time31 minutes ago

  • Yahoo

Musk Escalates Megabill Attacks, With Trump Reportedly ‘Furious'

Elon Musk ramped up his attacks on Donald Trump's massive tax and spending bill, even as the president reportedly was 'furious' at his former adviser's stunning intervention. The gloves came off when the richest man in the world on Tuesday torched the so-called Big Beautiful Bill, calling it a 'disgusting abomination.' On Tuesday night and into Wednesday, the Tesla boss, whose mission at the White House was to slash federal government spending, continued to post his disgust at a bill that would expand budget deficits by more than $2 trillion. In one message on X, formerly Twitter, the billionaire appeared to set up an electoral showdown with the GOP. 'In November next year, we fire all politicians who betrayed the American people,' wrote Musk, suggesting Republican politicians should be kicked out of Congress at the midterms. Musk was the biggest donor in the 2024 political cycle, lavishing $288 million to help elect Trump and other Republican candidates. He recently said he was scaling back his efforts unless there's 'a reason to do political spending in the future.' In his barrage of tweets, Musk, who left his temporary position at the White House just days ago, made repeated references to the damaging impact of the spiraling U.S. national debt. 'This immense level of overspending will drive America into debt slavery!' he said above a post of Federal Reserve Chair Jerome Powell warning in a 2024 interview that the current rate of spending is 'unsustainable.' In another post, Musk wrote, 'Mammoth spending bills are bankrupting America! ENOUGH.' He also responded with a '100' emoji when an X poster wrote that Musk had 'reminded everyone: It's not about Right vs Left. It's about the Establishment vs the People.' Trump has yet to publicly comment on Musk's maneuvers. On Tuesday night, the president said he wants his signature bill on his desk to be signed into law by the Fourth of July, yet made no reference to his former aide. But behind the scenes, Trump reportedly is livid. On Fox News' 'Fox & Friends' on Wednesday morning, co-host Brian Kilmeade said, 'I think the Elon Musk thing really caught the president by surprise. And I hear he is furious!' 'I think he's so smart to keep his powder dry,' Kilmeade added. 'Because it just plays into what critics would have to say, 'The right can't get out of their own way.' Instead, you have a goal: Pass it. Elon Musk is not in the Senate or the House. Don't worry about it.' The legislation includes nearly $4 trillion in tax cuts, mostly benefiting wealthy households. The cost is only partially offset by more than $1 trillion in cuts to Medicaid and federal food benefits. The House passed the legislation last month, and the Senate is working on its own version of the bill. Two Republican senators, Mike Lee (Utah) and Rand Paul (Ky.), signaled their agreement with Musk, who in turn shared posts from Republicans in Congress who publicly aligned with him. Elon Musk Takes A Chainsaw To The GOP's False Deficit Claims Elon Musk Unloads On Republicans' 'Disgusting Abomination' Big Beautiful Bill Republicans Big Mad At Elon Musk For Telling The Truth About 'Big, Beautiful Bill'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store