Week at a Glance

• Mon, Nov 3: ISM Manufacturing (Oct); S&P Global Manufacturing PMI; Palantir (PLTR) earnings after the bell.
• Tue, Nov 4: AMD (after-market, Q3 FY25), Uber, Shopify, Arista Networks; Pfizer, Amgen; shutdown likely delays Trade balance, Factory Orders, JOLTS.
• Wed, Nov 5: ADP Private Payrolls (Oct), ISM Services (Oct); Qualcomm, Arm, Novo Nordisk, McDonald’s, DoorDash, Robinhood, AppLovin.
• Thu, Nov 6: Fed speakers (Paulson, Musalem); AstraZeneca, Airbnb; shutdown likely delays Initial Claims, Productivity.
• Fri, Nov 7: Univ. of Michigan Sentiment (Nov prelim), Consumer Credit (Sep); BLS jobs report still delayed by shutdown; CEG, KKR, ENB, DUK report.

Major US data (payrolls, trade, factory orders) is again delayed by the extended federal shutdown, keeping focus on private indicators (ADP, ISM) and corporate guidance

Tech and AI in the Spotlight

The week kicks off with Palantir (PLTR) on Monday, whose shares have doubled this year on soaring demand for its AI-driven software platforms. The focus will be on commercial contracts, government pipeline updates, and profit margins — key indicators of whether the company can sustain its rapid growth.

On Tuesday, semiconductor bellwether Advanced Micro Devices (AMD) will report results amid heightened enthusiasm for AI chip demand. Investors will scrutinize data-center revenue and new GPU announcements following its October deal with Oracle. Qualcomm (QCOM) and Arm Holdings (ARM) follow Wednesday, offering a broader view of semiconductor demand across mobile, automotive, and cloud infrastructure.

With AI investment driving much of the S&P 500’s earnings growth in 2025, these reports could shape sentiment across the tech sector, particularly as traders assess whether the massive capital-spending spree by Amazon, Meta, and Microsoft remains sustainable.

Pharmaceuticals Under Pressure

Drugmakers take center stage midweek as Pfizer (PFE), Amgen (AMGN), and AstraZeneca (AZN) report earnings against an unusual backdrop: President Donald Trump’s renewed push to lower drug prices. Novo Nordisk (NVO), maker of Ozempic, will likely face direct questions after Trump said the weight-loss treatment “should cost about $150 a month” — well below its current four-figure price tag.

The results could determine how investors price the sector in the face of potential pharmaceutical tariffs or price-control measures. Analysts will watch for any revenue adjustments tied to voluntary price reductions or negotiated contracts with US health agencies.

Platform and Gig Economy Earnings

Outside of chips and drugs, Uber (UBER), Shopify (SHOP), Arista Networks (ANET), and Airbnb (ABNB) headline an eclectic mix of platform and consumer tech earnings. Uber and DoorDash results will offer clues about post-summer demand and unit economics, while McDonald’s (MCD) will provide a window into consumer spending trends amid persistent inflation.

Cloud-networking giant Arista Networks may deliver key signals about enterprise IT investment, while Shopify faces scrutiny on gross merchandise volume and profit margins as small-business activity cools.

Data Drought and Private Indicators

The ongoing government shutdown, now entering its second month, has delayed major reports, including the US employment report, trade balance, and factory orders. As a result, Wall Street will turn to private-sector releases such as ADP’s employment report on Wednesday and ISM’s manufacturing and services surveys for clues on growth and inflation.

The ISM Manufacturing PMI on Monday and ISM Services PMI on Wednesday will gauge industrial and consumer-facing activity at a time when the Fed is trying to balance rate cuts with lingering inflation. Economists expect modest improvement in both measures but caution that rising input costs could pressure margins across manufacturing and services alike.

Meanwhile, Philadelphia Fed President Anna Paulson, St. Louis’s Alberto Musalem, and New York’s John Williams are scheduled to speak this week, providing additional insight into how policymakers view the economic outlook following the Fed’s second rate cut of the year.

What It Means for Markets

The convergence of AI, pharmaceuticals, and labor-market data makes this week a pivotal one for traders. Strong tech results and stable private-sector job numbers could extend the market’s recent rally, while disappointing AI guidance or weak employment trends could quickly reverse sentiment.

For now, the tone remains cautiously optimistic. As one strategist put it: “We’re flying without instruments, the corporate outlook will be the only compass markets have until Washington reopens.”

This week’s narrative belongs to AI chips, drug pricing, and jobs. Tech optimism remains high, but in a data-thin environment, even one weak earnings report or soft PMI print could flip the market’s tone from confidence to caution in a heartbeat.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: November is historically one of the stock market’s best months. Where to invest?

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The post What to Expect in Markets This Week: Tech, Pharma, and Jobs Data Take the Stage first appeared on Finblog.

Who would have thought that Raspberry Pi, the maker of the tiny, cheap, single-board computers, would become a public company? Yet, this is exactly what’s happening: Raspberry Pi priced its IPO on the London Stock Exchange on Tuesday morning at £2.80 per share, valuing it at £542 million, or $690 million at today’s exchange rate.

Shortly after that, the company’s shares jumped a nice 32% to £3.70. It means that Raspberry Pi could end up raising more than $200 million during its IPO process.

Retail investors will soon be able to trade Raspberry Pi shares, starting this Friday, as the company’s shares are currently limited to institutional shareholders.

This listing is a significant win for the London stock market, which has seen many U.K. tech companies opt for U.S. listings due to higher liquidity.

Raspberry Pi, renowned for its affordable, low-power ARM-based computers, has gained popularity among tech hobbyists and industrial companies alike. The industrial and embedded segment now accounts for 72% of its sales. Since its inception, Raspberry Pi has sold 60 million units, generating $266 million in revenue and $66 million in gross profit in 2023.

Raspberry Pi Ltd, the commercial subsidiary of the Raspberry Pi Foundation, aims to make coding accessible with its low-cost computers. The Foundation remains the main shareholder, alongside strategic investors like ARM and Sony Semiconductor Solutions Corporation. ARM has expressed intentions to increase its stake via the public listing.

The post Raspberry Pi is now a public company first appeared on Finblog.

On Monday, Nvidia (NASDAQ: NVDA) commenced trading with its new 10-for-1 stock split, initially causing a brief 2.3% drop before stabilizing at $120 per share. This adjustment positions Nvidia’s stock as “cheaper” than its competitor Advanced Micro Devices (NASDAQ: AMD), which is trading at $163 per share.

Market Position and Performance

Both Nvidia and AMD are key players in the PC and gaming markets, with AMD dominating the console gaming sector. Nvidia, however, has shifted focus to data centers and high-performance computing, holding an 80% GPU market share compared to AMD’s 19%.

Despite a noticeable trend of AMD increasing its market share by 7% year-over-year, Nvidia reported massive data center revenue growth of 427% YoY to $22.6 billion. In contrast, AMD reported a modest 2% revenue increase to $5.47 billion, with $2.3 billion from the data center segment.

AI Market Dynamics

Nvidia’s first-mover advantage in AI, particularly with its H100 chips for AI language models, has secured a dominant 94% market share in the data center segment. AMD’s MI325X accelerator chips, coupled with the Vitis AI framework, aim to challenge this dominance. However, Nvidia’s established ecosystem of development tools continues to lock in AI developers.

Technological Advancements

AMD is advancing with its Embedded+ architecture and next-gen MI325X chips, featuring 3 nm packaging and HBM3E memory. Nvidia’s upcoming Blackwell series GPUs will also use advanced 3 nm processes. Both companies are neck and neck in tech innovation, though Nvidia’s integrated CUDA/GPU offerings have secured a larger AI market share.

Investment Outlook

Nvidia’s price-to-earnings (P/E) ratio, estimated to lower from 102 to 47 next year, suggests a favourable price correction and less risky earnings growth. Analysts forecast a 56% upside potential for Nvidia stock, compared to 17% for AMD. Nasdaq’s average price targets are $187.76 for Nvidia and $191 for AMD.

In summary, Nvidia’s stock split and strategic positioning in the AI market have boosted investor confidence, making it a strong contender alongside AMD in the tech and AI sectors.

©2024 Tim Fries\The Tokenist

The post AMD vs. NVDA: Which AI Stock Can Gain More in the Short Term? first appeared on Finblog.

Key Points of stock market

• Asian Markets: Tokyo’s Nikkei 225 rose 0.5% despite Japan’s economy contracting at an annualized 1.8% pace in Q1. South Korea’s Kospi fell 0.7%. Markets in China, Hong Kong, Australia, and Taiwan were closed.
• European Impact: Far-right gains in France led to Macron dissolving the National Assembly, causing the euro to drop to $1.0766.
• U.S. Markets: S&P 500 down 0.1%, Nasdaq down 0.2%, Dow down 0.2%. U.S. employers added 272,000 jobs in May, exceeding expectations.
• Treasury Yields: The yield on the 10-year Treasury rose to 4.43%, and the 2-year yield increased to 4.89%.
• Federal Reserve: Speculation on interest rate cuts reduced after strong jobs data. Fed officials are expected to hold interest rates steady at their upcoming meeting.
• Consumer Spending: Retail earnings indicate reduced spending on non-essentials due to inflation. Consumer spending remains a critical support for the economy but is pressured by persistent inflation.
• GameStop: Shares plunged 39.4% after reporting another quarterly loss and announcing plans to sell up to 75 million more shares.
• Oil Prices: U.S. benchmark crude rose to $75.76 per barrel, and Brent crude increased to $79.90 per barrel.
• Currency: The U.S. dollar strengthened to 157.12 Japanese yen.

The global financial markets are experiencing a period of mixed performance and uncertainty. Asian markets displayed varied reactions to the stronger-than-expected U.S. jobs report, while European markets were jolted by political developments in France. The dissolution of the French National Assembly by President Macron led to a dip in the euro, reflecting heightened political risk.

In the U.S., robust job growth continues to complicate the Federal Reserve’s strategy on interest rates, although signs of an economic slowdown are emerging. Retail earnings indicate consumer spending is focused on essentials amid persistent inflation, affecting overall economic support.

GameStop’s significant stock decline highlights ongoing challenges for companies at the center of speculative trading. Meanwhile, oil prices saw a slight increase, and the U.S. dollar strengthened against the yen, signaling investor moves in response to broader economic conditions. As markets navigate these dynamics, careful monitoring of political and economic indicators will be crucial for anticipating future trends.

The post Stock market today: Asian markets mixed following hotter-than-expected US jobs first appeared on Finblog.

REC Chief Executive Neil Carberry noted improvements across key measures, suggesting a rebound in the jobs market. The survey, often reflecting a weaker labour market than official data, showed a 6% annual wage growth in Q1 2024.

The upcoming July 4 national election and expected Bank of England (BoE) interest rate cuts may reduce employer hesitancy in hiring. Pay rates for permanent staff continued to rise, and vacancies fell at the slowest rate in a seven-month downturn. Staff availability increased significantly, driven by redundancies, higher unemployment, and reduced demand. The BoE is closely monitoring the labour market to determine when to lower borrowing costs, aiming to manage inflation pressures effectively.

The post UK job market on its way back after downturn, recruiters say first appeared on Finblog.

The Ministry of Land, Infrastructure, Transport, and Tourism found irregularities in certification applications by Toyota, Mazda, Honda, Suzuki, and Yamaha. Toyota and Mazda admitted to falsifying vehicle data used in crash tests.

Following the scandal, Toyota halted shipments and sales of three models: Corolla Fielder, Corolla Axio, and Yaris Cross. Mazda suspended sales of the Roadster RF and Mazda 2 from May 30.

The ministry will conduct on-site inspections of the implicated companies. This follows an earlier scandal involving Toyota’s Daihatsu unit, which halted shipments after rigging safety tests for 88,000 cars.

Toyota’s Chairman Akio Toyoda apologized for the misconduct, assuring customers they could still drive their cars. The investigation highlights ongoing issues in safety compliance within the Japanese automotive industry.

The post Toyota lost over $15 billion in market value last week after being caught falsifying tests first appeared on Finblog.

Nvidia is set to split its stock 10-for-1 after Friday’s close, potentially making it eligible for inclusion in the Dow Jones Industrial Average. Analysts remain bullish on Nvidia’s AI prospects. BofA Securities reiterated Nvidia as its top sector pick with a price target of $1500, citing the company’s lead in AI performance, pipeline, and developer support.

Reaching a $5 trillion market cap would mean a stock price of $2032, or $203 per share post-split, a 66% increase from current levels.

The post Nvidia stock will pass Microsoft next on way to $5 trillion – Navellier first appeared on Finblog.

Nvidia — the undisputed winner of the past year’s AI stock boom — passed Apple to become the second-most valuable public company as of Wednesday’s market close.

By the numbers: The chipmaker’s market cap passed $3 trillion for the first time, putting the company a hair above Apple and behind only Microsoft.

• Its stock, which has jumped more than 147% for the year, is the strongest force lifting the S&P 500.

The big picture: Nvidia’s profit margins are the envy of the corporate world — it made $14.9 billion of net income on revenue of $26 billion last quarter, Axios’ Felix Salmon writes.

• By contrast, Nvidia’s net income was just $0.7 billion in the final quarter of 2022.
• Nvidia produces top-of-the-line chips needed to train AI models and for other cutting-edge tech.

The post Nvidia passes Apple as world’s second-most valuable company first appeared on Finblog.

Almost five years ago, GameStop champion Keith Gill (Roaring Kitty) revealed a $53,000 bet in his favorite video game retailer. This week, Gill’s net worth is over $289 million.

The meme stock leader, known as “DeepF——Value” on Reddit and “Roaring Kitty” on YouTube and X, revealed he still holds 5 million GameStop shares and 120,000 call options after a 21% rally, netting $79 million on paper in a single day. Gill, who started his GameStop position with $53,000 in September 2019, encouraged retail traders to squeeze short-selling hedge funds. By April 2021, he had 200,000 common shares. He resurfaced online three years later with significantly larger positions, while GameStop continues to struggle with its shift to e-commerce.

Roaring Kitty wealth. Next steps?

The last screenshot of Gill’s portfolio showed 120,000 call options against GameStop with a strike price of $20 that expires June 21.

Put another way: If the stock closes above $20 that day, Gill could exercise the options at $20 apiece, leaving him owning an additional 12 million shares. A total of 17 million shares would make him the fourth-biggest shareholder in GameStop, coming in behind Vanguard, BlackRock and Ryan Cohen’s RC Ventures, according to FactSet.

The notional value, if exercised, would be $240 million worth of stock bought at $20.

“Unless you have the money to take custody of the stock after exercising the calls, you’re just renting them with the assumption of selling them, or selling stock against them before they expire,” said CC Lagator, co-founder of brokerage Options AI. “The issue on a position of that size is, it would be very apparent to other market participants that those calls or stock versus those calls was being sold, putting a lot of pressure on the stock.”

$1 billion?

If Gill exercises the calls, that would leave him with 17 million shares. At Monday’s close of $28, the stake would be worth $476 million.

At GameStop’s recent peak of $64.83 on May 14, it would be worth $1.1 billion. (His cost to acquire such a stake this way would be $421.4 million.)

Gill could also roll those call options to a further expiration date to buy some time, which means exiting the current position and immediately entering a similar position. However, that could be a costly option.

“The problem with that is he’s going to be wasting money on new option premium each time he does that,” Lagator said.

Shares of GameStop fell 5.4% on Tuesday.

Gill could run into some trouble, though. The Wall Street Journal reported that Morgan Stanley’s E-Trade broker was considering booting him because of the worry that what he was doing could amount to market manipulation. 

©2024 CNBC

The post How Roaring Kitty’s wealth went from $53,000 to nearly $300 million – could one day top $1 billion first appeared on Finblog.

Cycles in the Crypto Market

Altcoin seasons typically follow cycles, with Bitcoin leading, followed by Ethereum and other altcoins. As Ethereum’s price rises significantly, market sentiment and the Ethereum ETF approval are paving the way for a major altcoin season.

Given these factors, analyst Poppe predicts now is the final opportunity to buy altcoins at low prices.

Top 5 Altcoins Expected to Outperform Major Cryptocurrencies

Optimism (OP): Optimism is a layer 2 blockchain on the Ethereum network, known for its scalability and low transaction costs while maintaining security and decentralization. With nearly 30% of its market cap locked in its ecosystem, OP has a high potential for significant returns. Currently trading at $2.45, Poppe predicts OP could surge 300% to 800% against Bitcoin in the next six months.

Arbitrum (ARB): ARB recently announced the release of 225 million tokens valued at $250 million for its Gaming Catalyst Program, attracting many investors. Despite recent performance, ARB’s ecosystem is rapidly growing. Trading at $1.13, Poppe expects ARB to increase 250% to 300% against Bitcoin as it rebounds from recent lows.

WO Network (WO): A decentralized exchange with superior execution latency and great liquidity, WO Network stands to gain from the expanding Ethereum ecosystem. Poppe predicts WO prices will rise 300% to 800% due to the growing use of decentralized exchanges worldwide.

Wormhole (WORM): Wormhole facilitates interoperability across blockchains, crucial for the evolving crypto ecosystem. Despite current price consolidation, WORM remains a significant asset due to its integration capabilities. Poppe expects WORM to surge 200% to 400% as blockchain interoperability becomes increasingly important.

Dogecoin (DOGE): Despite an 81% drop from its peak, Dogecoin remains strong with robust community support. With the rise of other meme coins, Poppe predicts DOGE will surge 400% to 500%, benefiting from the meme coin craze.

Market Shifts

The launch of the Bitcoin ETF shifted capital from altcoins to Bitcoin, pressuring the altcoin market. However, this trend is reversing with the Ethereum ETF approval, likely leading to a new wave of altcoin investments. Historical trends show altcoins perform best in the second half of the year, making this a prime time to invest.

The post Michaël Van de Poppe Reveals Top Altcoins to Buy Right Now For 10x Profits  first appeared on Finblog.