Trading this fintech giant using options ahead of earnings
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CNBC
27 minutes ago
- CNBC
Adam Parker: The case for the S&P 500 climbing to 10,000 by 2030
(This is an actual research report from Trivector's Adam Parker, reprinted for CNBC Pro subscribers with permission. Click here to subscribe to Trivector.) Investors with whom we are speaking appear well-aware of the potential negatives for the U.S. equity market. However, this awareness seems to be taking a back seat to FOMO (fear of missing out) on the current uptrend in the market. We share in some of that optimism as we see a path to 10% EPS growth for the S & P 500 , with a low 20x price-to-forward earnings ratio – elevated versus history but justified by structurally higher margins. Why are we more bullish on the long-term and what is the case for 10,000 on the S & P 500 by 2030? We have done extensive analysis looking at the relationship between margins and multiples, showing that expanding margins can lead to multiple expansion. This, combined with our view on AI and the positive impact it can have on margins across sectors, leads us to be bullish on U.S. equities for the next 12-to-18 months. We see the S & P 500 above 7000 before the end of 2026, if not sooner. The top 50 companies are relatively immune from higher inflation, a dynamic that was made crystal clear post-COVID. These companies account for nearly 50% of the gross profit dollars of the S & P 500. Moreover, lower input costs like commodities and oil, tame logistics expenses, and a weakening dollar might all help the earnings outlook for the second half of 2025. AI productivity and revenue synergies likely help 2026 and 2027 earnings. We don't see the market performing poorly with this as the backdrop driving double-digit EPS growth. In the table below, we show going left-to-right a range of per year EPS assumptions for the S & P 500 from 5% to 15%. Up and down we show a range of price-to-forward earnings multiples from 15x to 25x. The case for 10000 by the end of 2030 is one where investors pay 22x earnings on 10% per year earnings growth between now and then. Look at the range of multiples and earnings estimates below, with the cells in black showing the outcomes that support the S & P500 around 10000 by 2030. 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. The analyst, Adam Parker, responsible for the preparation of this research report certifies that: all the views expressed in this research report accurately reflect the research analyst's personal views
Yahoo
31 minutes ago
- Yahoo
Zacks Investment Ideas feature highlights: AMD, Nvidia, Oracle, Tesla and Broadcom
For Immediate Release Chicago, IL – August 5, 2025 – Today, Zacks Investment Ideas feature highlights AMD AMD, Nvidia NVDA, Oracle ORCL, Tesla TSLA and Broadcom AVGO. Buy AMD Stock for New Peaks as Q2 Earnings Approach? AMD will be a highlight of this week's earnings lineup, with the chip leader set to release its Q2 report after-market hours on Tuesday, August 5. Like Nvidia, which is scheduled to report later in the month, AMD stock has been performing well due to a combination of strategic product launches, strong AI demand, and favorable market conditions. Recently hitting a 52-week high of $182 a share, let's see if fresh peaks are in store for AMD stock as its Q2 earnings approach. AI Momentum & Data Center Growth Gaining traction from major companies like Oracle, Tesla and OpenAI, AMD's MI355X Graphic Processing Unit (GPU) is reported to deliver over 7X the compute power of its previous high-powered AI chip, the MI325X, and has become a serious contender to Nvidia's offerings. Thanks to strong demand for AI accelerators, AMD has raised the price of its MI350 series chips to over $20,000. This is a great sign ahead of AMD's Q2 report, as the company's Central Processing Units (CPUs) and GPUs led to a 57% surge in its data center revenue in Q1. Also fueling investor sentiment is that recent U.S. policy shifts have loosened export restrictions, allowing AMD to resume its chip shipments to China and potentially adding hundreds of millions in revenue. Rebounding and surging over +70% in the last three months, AMD stock is now up +45% year to date to impressively top the S&P 500 and Nasdaq's returns of +6% and +8% respectively, while even topping Nvidia's +32%. AMD's Q2 Expectations With analysts expecting another strong quarter of data center growth, AMD's Q2 sales are expected to be up 27% to $7.41 billion compared to $5.84 billion a year ago. However, AMD is also facing the impact of competitive pricing in the CPU and GPU market, with Q2 earnings thought to have dipped to $0.47 a share compared to EPS of $0.69 in the prior period. Attributing to margin pressures, higher R&D spending on its next-generation GPUs is thought to have weighed on AMD's bottom line during Q2 as well. That said, AMD has reached or exceeded the Zacks EPS Consensus for 25 consecutive quarters, dating back to April of 2019, and has posted an average EPS surprise of 2.3% over its last four quarterly reports. Plus, AMD is still projected to post double-digit top and bottom line growth in fiscal 2025 and FY26, but Wall Street is very much anticipating the company's Q3 guidance to see if the chipmaker can sustain its growth trajectory. Monitoring AMD's Valuation Like most of the leading chipmakers, AMD stock trades at a premium to the broader market at 44X forward earnings. While this is above the benchmark S&P 500's 23.3X, AMD is roughly on par with Broadcom's forward P/E valuation and is near Nvidia's 40.7X. It's also noteworthy that AMD trades far more reasonably than some of its AI chip-producing peers in terms of price-to-sales. In this regard, AMD has a forward P/S ratio of 8.7X, with Nvidia and Broadcom stock trading over 20X forward sales. Bottom Line For now, AMD stock lands a Zacks Rank #3 (Hold). To that point, it wouldn't be surprising if AMD stock hit new peaks, although better buying opportunities could be ahead after such a monstrous rally over the last three months. Keeping this in mind, AMD's Q2 report and guidance will be critical to more upside. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
an hour ago
- CNBC
Coinbase shares slide Tuesday, as crypto play takes double-digit fall from July record
Coinbase shares slid on Tuesday after the company announced a $2 billion private offering of convertible senior notes. Shares were last down more than 5%. The decline occurred as investors adopted a risk-off stance on Tuesday and the three major averages declined. Coinbase is now off more than 30% from its all-time high of $444.65, reached on July 18. Shares popped in mid-July as legislators voted on a series of crypto-related bills, ending with President Donald Trump signing the GENIUS Act stablecoin legislation — the nation's first-ever crypto law. Shares have been collapsing since then. Shares of the crypto-trading platform have been running hot since May. That month, the cryptocurrency market started to lead the way back from the market's April 8 low, and Coinbase joined the benchmark S&P 500. While investors remain optimistic on the crypto services company's long-term opportunity prospects, some on Wall Street have warned it could be time to take some money off the table as the stock's momentum starts to wane. Last week, Citi hiked its price target to $505 from $270. The analyst said Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue. An explosion in demand for crypto beyond bitcoin – particularly coins and companies in the Ethereum universe – are also widely viewed as a boon to Coinbase. Coinbase reported disappointing second-quarter revenue last week, causing investors to sell their shares despite a stronger start to the third quarter. Coinbase is still up 21% year to date.
