In today’s briefing:
- The Reality of Mixed Reality
- Teradyne Inc.: Diversification into AI and Robotics Could Catalyze Growth! – Major Drivers
- Disney Q1 Earnings: Finally Ready to Take Share from Netflix
- Super Micro Computer: Initiation of Coverage – Unlocking the Power of AI with Green Computing – Why Investors Can’t Afford to Miss Out! – Major Drivers
- Whirlpool Corporation: Improving Prospects In North America & Cost Reduction Efforts Saving The Day? – Major Drivers
- Spirit Airlines – Summer 2024 a Critical Test of Organic Recovery Prospects
- Starbucks Corporation: Substantial Growth Through New Store Openings & Innovation! – Major Drivers
- Qualcomm Incorporated: Heavy Investments in On-Device AI and IoT And 5 Major Drivers
- Microsoft Corporation: AI Infrastructure Investments & Growing Cloud Demand Are Indicators Of A Bright Future – Major Drivers
- Crypto Moves #14 – It’s Not About What’s There, But What Isn’t
The Reality of Mixed Reality
- The world does not need another opinion on the Vision Pro, the Apple mixed reality device whose launch coincided with Meta earnings, but I will share mine so I can understand my thought process in the future.
- I have the right to be wrong. The revenue share of Meta’s FRL is so small it might seem redundant to give it so much limelight.
- But, directionally, it’s an important category for the company. With a launch of this scale, the hyperbole and sensationalism rhyme with things we’ve seen in decades past.
Teradyne Inc.: Diversification into AI and Robotics Could Catalyze Growth! – Major Drivers
- In the fourth quarter of 2023, Teradyne, a provider of computer-controlled configurations, and collaborative robots, reported financial results in line with its guidance.
- The company highlighted strong performance in the Memory Test sector, which saw the double year-over-year revenue from DRAM testers due to HBM demand, and in the Industrial Automation marketplace.
- Additionally, Teradyne experienced robust growth sequentially in sales from its Robotics team, as it elevated shipments to meet the record backlog of its UR20 Cobot at Universal Robots.
Disney Q1 Earnings: Finally Ready to Take Share from Netflix
- Imagine a racetrack with 10 horses. The first two horses (NFLX and DIS) are peeling away from everyone else; with NFLX still having a sizeable lead over DIS.
- But the stage is set for DIS to start accelerating faster than NFLX.
- This is how I would describe the US Media sector today, and Disney’s Q1 results released yesterday only serves to bolster that narrative.
Super Micro Computer: Initiation of Coverage – Unlocking the Power of AI with Green Computing – Why Investors Can’t Afford to Miss Out! – Major Drivers
- This is our first report on one of the fastest growing high-performance server and storage solutions providers, Super Micro Computer Inc.
- The company reported a record-breaking fiscal second quarter performance for 2024, with a revenue of $3.66 billion and an earnings per share of $5.59, marking a 103% increase from last year.
- This is the first time the company has crossed the $3 billion mark in quarterly revenue, which surpassed even the total annual revenue collected in 2021.
Whirlpool Corporation: Improving Prospects In North America & Cost Reduction Efforts Saving The Day? – Major Drivers
- The Whirlpool Corporation released its fourth-quarter 2023 earnings and reported progressive achievements, including gaining over 1% market share in North America, reducing its net costs by $800M, and signing significant transactions with Arçelik.
- However, the Whirlpool Corporation did acknowledge areas where it didn’t meet expectations, specifically citing increased promotional pressure which negatively impacted EBIT margins, and a failure to reduce inventories quickly, weighing on the full cash flow.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Spirit Airlines – Summer 2024 a Critical Test of Organic Recovery Prospects
- Spirit Airlines finished 2023 as expected and highlights improving pricing momentum in early 2024 which should drive some margin recovery.
- However, we still expect EBITDAR/ASM to finish 2024 down 72% on 2019, with a maximum 50% deficit required to avoid escalating debt. This drives a focus on Chapter 11 risk.
- Management is adamant liquidity is sufficient to allow it to recover but significant margin gains, led by pricing expansion despite aggressive growth plans, are required for financial sustainability.
Starbucks Corporation: Substantial Growth Through New Store Openings & Innovation! – Major Drivers
- Starbucks Corporation on its First Quarter Fiscal Year 2024 earnings call provided a detailed account of the firm’s financial performance and future projections, endorsing its growth strategy despite short-term challenges.
- Positively, the company managed to increase its Q1 total company revenue by 8% year-over-year to a record $9.4 billion.
- Further, the firm’s global comparable store sales witnessed a growth of 5% year-over-year, backed by a 5% comp growth in North America and a 10% comp growth in China.
Qualcomm Incorporated: Heavy Investments in On-Device AI and IoT And 5 Major Drivers
- Qualcomm has reported its Q1 fiscal year 2024 results, highlighting robust revenue growth across various business segments.
- In the first fiscal quarter, non-GAAP revenues reached $9.9 billion and non-GAAP earnings per share were $2.75 which is above the high end of the company’s guidance.
- Healthy Android demand coupled with momentum in automotive drove revenues of $8.4 billion from the chipset business, while the licensing business posted revenues of $1.5 billion.
Microsoft Corporation: AI Infrastructure Investments & Growing Cloud Demand Are Indicators Of A Bright Future – Major Drivers
- Microsoft Corporation reported strong financial performance for its second quarter fiscal year 2024.
- The company attributed this success primarily to the continued growth of its Microsoft Cloud segment, which surpassed $33 billion in revenue, marking a 24% increase.
- Microsoft Cloud’s success largely stemmed from the efficient application of Artificial Intelligence across different sectors.
Crypto Moves #14 – It’s Not About What’s There, But What Isn’t
- Last week, we stuck to our bullish market perspective, and it turned out to be a wise choice.
- Yesterday’s celebration of our spot-on prediction resulted in today’s hangover of mine.
- Interestingly, in Denmark, there is a custom of referring to Thursday as ‘little Friday’ when we go out drinking on those days.
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