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Yahoo
16-05-2025
- Business
- Yahoo
Zacks Investment Ideas feature highlights: Microsoft, Apple, Nvidia and Broadcom
Chicago, IL – May 16, 2025 – Today, Zacks Investment Ideas feature highlights Microsoft MSFT, Apple AAPL, Nvidia NVDA and Broadcom AVGO. 2025 has been anything but uneventful. Stocks began correcting early in the year when China's 'DeepSeek' AI platform upended the bull thesis and brought 'Mag 7' valuations back to Earth. Then, President Trump's 'Liberation Day' led to washout selling even where the major indices briefly went into 'bear market territory.' Since then, trade deals have begun to trickle in, and most importantly, tensions between the US and China have thawed. Though bulls are in control of the primary trend, US equities may be due for a pullback for three reasons, including: Last month, I pointed out several times to Technology Innovator service subs that sentiment had neared rock bottom levels. For example, the CNN Fear & Greed Indicator, which combines seven different market indicators to derive what emotion drives the market, registered its most 'Fearful' in several years. However, it can be breathtaking what simple price appreciation can do to sentiment. In just a few weeks, sentiment has flipped to near 'Extreme Greed' levels. Beaten-down big-tech stocks within the Nasdaq 100 like Microsoft, Apple, Nvidia and Broadcom have rebounded viciously off the tariff-panic lows. That said, in the short-term, the Relative Strength Index suggests that they may be overheated. Historically, when 24% or more of Nasdaq 100 stocks have an RSI reading above 70, returns one week later are negative. The S&P 500 Index has been up more than 20% since the April 7th panic lows. To put that in context, the S&P 500 Index historically returns roughly 10% on average annually. While the bulls have regained control, markets never go straight up. The S&P 500 and other major indices are approaching their .786 Fibonacci retracement levels – an area where markets tend to pause. In addition, the S&P is approaching old supply levels that may take time for bulls to chew through. Rapidly shifting sentiment, extreme overbought conditions, and key resistance levels suggest that investors should proceed with a fair degree of caution in the short-term. 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 access their live picks without cost or obligation. See Stocks Free >> 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 Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-05-2025
- Business
- Yahoo
Zacks Investment Ideas feature highlights: Alibaba, JD.com, SPDR S&P Biotech ETF, Merck and Microsoft
Chicago, IL – May 13, 2025 – Today, Zacks Investment Ideas feature highlights Alibaba BABA, JD, SPDR S&P Biotech ETF XBI, Merck MRK and Microsoft MSFT. After months of escalating rhetoric, mounting tit-for-tat tariffs, and diplomatic gridlock, representatives from the world's two largest economies finally sat down to talk trade. Approaching the weekend, expectations for common ground between the two rival nations were underwhelming – to say the least. China and the US had each imposed triple-digit tariffs on each other, so high that most investors on Wall Street essentially thought of them as a trade embargo. Meanwhile, representatives from the United States, like Treasury Secretary Scott Bessent, said that the negotiation between the United States and China could take three years and that 'everything is on the table,' including the potential to de-list US-traded Chinese ADRs such as e-commerce giants Alibaba and However, on Monday, stocks exploded to the upside, with the Nasdaq gaining more than 4% and the S&P 500 gaining ~3%, recouping all the losses (and then some) since President Trump's April 2nd 'Liberation Day.' Why are investors so happy? Both US and Chinese officials communicated the idea that more progress was made than initially anticipated and that the sides will finalize a pact as soon as possible. Most importantly, each side is slashing tariffs on each other for the next 90 days. The US will cut tariffs on Chinese goods to 30% from 145%, and the Chinese will lower tariffs to 10% from 125%. The cooling of trade relations will provide Wall Street with something it hasn't had in the past month: certainty. Finally, the US and China released an extremely rare joint statement. President Donald Trump's busy weekend did not stop with trade negotiations. Trump shared on his social media platform 'Truth Social' that the United States will be instituting a 'Most Favored Nation's Policy' via executive order whereby the United States will pay the same price as the nation that pays the lowest price worldwide. The SPDR S&P Biotech ETF and big pharma giants like Merck were lower in early trading Monday. Chat-GPT-parent OpenAI made plans over the weekend to renegotiate its partnership with Microsoft to shift to a public benefit corporation to eventually IPO. OpenAI, which has been under the 'non-proifit' umbrella since its founding, has been moving toward a for-profit structure for months, and this news formalizes it. Beyond OpenAI private shareholders, MSFT investors stand to benefit the most from an OpenAI IPO as Microsoft owns a 49% stake in the company. The geopolitical backdrop also provided welcome news for Wall Street. Over the weekend, news broke that Ukranian President Zelensky and Russia's Putin will meet to negotiate an end to the current conflict. Saturday. India and Pakistan agreed to a ceasefire amid a multi-day skirmish. Meanwhile, the final living Israeli hostage was released by Hamas. Finally, President Trump will make his first international trip of his second presidency when he visits the Middle East on Tuesday. An unexpected thaw in US-China trade relations is sending US equity markets soaring this morning. 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 access their live picks without cost or obligation. See Stocks Free >> 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Inc. (JD) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report SPDR S&P Biotech ETF (XBI): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Yahoo
01-05-2025
- Business
- Yahoo
AI ETFs Set to Gain on Robust Meta, Microsoft Earnings
Meta Platforms META and Microsoft MSFT reported robust quarterly earnings, boosting investor confidence in the artificial intelligence (AI) sector. The dual earnings underscore that strong demand for AI is helping both companies navigate economic uncertainty driven by tariffs. Both tech giants surpassed the Zacks Consensus Estimate, leading to a surge in their stock prices and spreading huge optimism into AI-related stocks across the the reports, NVIDIA (NVDA) and Advanced Micro Devices (AMD) rose 2.8% and 2%, respectively, while Amazon (AMZN) jumped 3% in after-hours trading. Alphabet (GOOGL) also saw a modest increase of more than 1%. Investors may tap the opportunity with AI ETFs like Global X Artificial Intelligence & Technology ETF AIQ, Global X Robotics & Artificial Intelligence ETF BOTZ, ROBO Global Robotics & Automation Index ETF ROBO, ARK Autonomous Technology & Robotics ETF ARKQ, First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT, ROBO Global Artificial Intelligence ETF THNQ and Amplify AI Powered Equity ETF AIEQ. Meta Platforms reported earnings per share of $6.43, which topped the Zacks Consensus Estimate of $5.22 and increased 37% from the year-ago quarter. Revenues grew 16% year over year to $42.3 billion and came above the estimated $41.22 billion (read: Can Q1 Earnings Inject Fresh Life Into Magnificent 7 ETFs?). In a strategic move, Meta raised its capital expenditure guidance to $64-$72 billion from the previous projection of $60-$65 billion for 2025. The new guidance 'reflects additional data center investments to support artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.' Microsoft reported earnings per share of $3.43, beating the Zacks Consensus Estimate of $3.20 and improving 18% from the year-ago earnings. Revenues grew 13% year over year to $70.07 billion, edging past the consensus estimate of $68.38 billion. Strong demand for Cloud services and AI infrastructure drove the is one of the biggest beneficiaries of the AI boom. It has been pouring billions into building its AI infrastructure and expanding its data-center footprint. During a call with analysts, chief financial officer Amy Hood said Azure will grow as much as 35%, adjusting for currency fluctuations, during the ongoing quarter. The latest earnings underscore the resilience and growth potential of AI-focused companies. While the significant capital expenditures raise questions about short-term profitability, the long-term potential of AI technologies presents substantial opportunities for growth. The global AI market is undergoing remarkable growth, fueled by key drivers such as the widespread adoption of digital technologies, increasing awareness of AI's potential, and the rising demand for convenient online services. This rapid expansion is further propelled by major advancements in AI robotics, autonomous systems, sensor technology, computer vision, machine learning, natural language processing and generative AI (read: A Glimpse at Trump's 100 Days in Office: ETF Winners & Losers).A new UN Trade and Development report projects the global AI market will soar from $189 billion in 2023 to $4.8 trillion by 2033, representing a 25-fold increase in just a decade. Per Grand View Research, the global AI market is expected to witness a compound annual growth rate of 35.9% from 2025 to 2030 to reach $1,811.75 billion by 2030. Statista projects that the AI market will reach $244.22 billion in 2025 and $1.01 trillion by 2031 at a CAGR (2025-2031) of 26.60%. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report ARK Autonomous Technology & Robotics ETF (ARKQ): ETF Research Reports ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Amplify AI Powered Equity ETF (AIEQ): ETF Research Reports Global X Artificial Intelligence & Technology ETF (AIQ): ETF Research Reports First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports ROBO Global Artificial Intelligence ETF (THNQ): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Wall Street Journal
29-04-2025
- Business
- Wall Street Journal
Altman and Nadella, Who Ignited the Modern AI Boom Together, Are Drifting Apart
Sam Altman once said OpenAI and Microsoft MSFT -0.18%decrease; red down pointing triangle had the 'best partnership in tech.' Now, their Silicon Valley marriage is on the rocks. Microsoft turbocharged the AI startup's growth over the past six years with billions of dollars in funding, helping OpenAI's ChatGPT accumulate more than 500 million weekly users. OpenAI powered cutting-edge generative AI tools for the technology giant, helping its share price triple.
Yahoo
26-04-2025
- Business
- Yahoo
Should You Buy, Sell or Hold Microsoft Stock Before Q3 Earnings?
Microsoft MSFT is slated to report third-quarter fiscal 2025 results on April Zacks Consensus Estimate for revenues is pegged at $68.38 billion, indicating growth of 10.55% from the figure reported in the year-ago consensus mark for earnings has remained steady at $3.20 per share over the past 30 days, suggesting 8.84% year-over-year growth. Image Source: Zacks Investment Research See the Zacks Earnings Calendar to stay ahead of market-making news. In the last reported quarter, the company delivered an earnings surprise of 3.86%. The company's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.34%. Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote Our proven model does not conclusively predict an earnings beat for Microsoft this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP has an Earnings ESP of -0.51% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Microsoft's upcoming third-quarter fiscal 2025 results are expected to demonstrate steady growth, though several indicators suggest investors should consider holding positions or awaiting more favorable entry points. The company's performance continues to be anchored by its cloud-focused segments, with varying growth patterns across its diverse business the Productivity and Business Processes segment, Microsoft projects revenues between $29.4 billion and $29.7 billion, with model estimates indicating 8.9% year-over-year growth to $29.51 billion. Office 365 Commercial revenues are anticipated to grow 14-15% at constant currency (cc), highlighting the continued shift from traditional on-premise solutions to cloud-based offerings. While Office Commercial products revenues are expected to remain flat, Office Consumer products and cloud services demonstrate resilience with projected mid-to-high single-digit growth. LinkedIn performance appears moderate with forecasted low-to-mid single-digit revenue increases, while Dynamics 365 maintains stronger momentum with mid-teens growth Intelligent Cloud segment continues as Microsoft's primary growth engine, with revenue projections between $25.9 billion and $26.2 billion. Our model estimate for this segment is pegged at $26.06 billion, indicating growth of 17.7% from the figure reported in the year-ago remains the standout performer, with anticipated revenue growth of 31-32% at cc, reinforcing Microsoft's AI-focused strategy. Enterprise Services is projected for modest low-to-mid single-digit growth, contrasting with expected mid-single-digit declines in Server product More Personal Computing segment presents a more measured outlook, with revenue projections of $12.4-$12.8 billion. Our model estimate for this segment is pegged at $12.77 billion, indicating growth of 1.3% from the figure reported in the year-ago revenue performance appears contingent on improving while slow PC demand trends. According to the preliminary results from the International Data Corporation Worldwide Quarterly Personal Computing Device Tracker, first-quarter 2025 worldwide PC shipments reached 63.2 million units, growing 4.9% year over year, though Microsoft expects Windows OEM revenues to decline in low-to-mid single digits. The competitive landscape shows steady results, with Lenovo LNVGY achieving 10.8% shipment growth while Hewlett Packard HPE and Dell Technologies DELL experienced an increase of 6.1% and 3%, segment revenues are projected for low-single-digit growth, with Xbox content and services expected to achieve low-to-mid single-digit increases. This moderate performance in consumer-facing segments contrasts with the stronger enterprise and cloud Microsoft maintains solid fundamentals with consistent growth in key strategic areas, particularly cloud services and AI initiatives, the varied performance across segments suggests potential headwinds. Investors should carefully evaluate the company's ability to maintain premium valuation multiples given the modest growth projections in personal computing and certain business segments, potentially supporting a cautious approach ahead of the earnings announcement. Shares of MSFT have declined 8.1% in the year-to-date period compared with the broader Zacks Computer & Technology sector which has decreased 12.1%. Shares of LNVGY, DELL and HPE have lost 12.7%, 18.1% and 24.2%, respectively in the same period. Image Source: Zacks Investment Research Now, let's look at the value Microsoft offers investors at current levels. MSFT is trading at a premium with a forward 12-month P/S of 9.49X compared with the Zacks Computer - Software industry's 7.94X, reflecting a stretched valuation. Image Source: Zacks Investment Research Microsoft presents a compelling but nuanced investment opportunity ahead of third-quarter fiscal 2025 results. While the company maintains strong fundamentals through its cloud dominance (Azure) and productivity suite (Office 365), with strategic AI initiatives providing long-term growth potential, investors should consider adopting a cautious stance. The company's diversified revenue streams offer stability, but cloud market competition from Amazon and Google, potential enterprise IT spending constraints, and increasing regulatory scrutiny create near-term headwinds. Current valuations may not fully account for these challenges despite Microsoft's strong balance sheet and consistent shareholder returns. Investors might benefit from holding existing positions or waiting for more favorable entry points following the upcoming earnings announcement, when market expectations and growth projections can be reassessed against actual performance metrics. Microsoft's strong performance in productivity and collaboration offerings is expected to drive steady growth in the third quarter of fiscal 2025 despite a premium valuation and fierce competition in the cloud market. Maintaining a position in Microsoft appears prudent at present. Investors looking to buy the stock should, however, exercise caution and wait for a better entry point. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
