In today’s briefing:
- Crypto Crisp: Buy the Dip
- AI Surge Increases Power Consumption Leading to Energy Shifts
- Schlumberger’s International Strength to Propel Q2 Growth
- Micron Technology Inc.: Will Its Expansion into Data Center and AI Markets Result In A Massive Runup? – Major Drivers
- Play the Hand You’re Dealt; Bullish Outlook Intact; Remain Overweight Large-Cap Growth; Tech Buys
- CarMax Inc.: Operational Efficiencies In Reconditioning & Logistics Expanding The Bottom-Line? – Major Drivers
- A Bad Break For Bulls… What’s Next?
- BBW: Snapping the Store – Milan Edition – Looking at Expansion, Reiterate Buy
- GES: Snapping the Store: Milan – Guess Jeans Launch – Reiterate Buy, $37 PT
- GES: 2H Signposts: Elevation and Escalation for Guess?; Reiterate Buy & $37 PT
Crypto Crisp: Buy the Dip
- Before we dive into this Monday’s edition of Crypto Crisp, we want to announce a format change.
- Starting today, the ‘Charting Crypto’ section will only feature the most intriguing charts we have discovered over the past week.
- Instead of showcasing four to five recurring charts that may not always be interesting, we will focus solely on the most noteworthy ones.
AI Surge Increases Power Consumption Leading to Energy Shifts
- AI advancements will increase data center power demand by 160% by 2030, consuming 8% of U.S. electricity.
- A single ChatGPT query uses 2.9 watt-hours of electricity, compared to 0.3 watt-hours for a Google search.
- 2 of the 5 top performing stocks year-to-date in the S&P 500 are utility companies Vistra Corp and Constellation Energy. Utility sector has gained 6.7% in 2024.
Schlumberger’s International Strength to Propel Q2 Growth
- Schlumberger’s revenue is expected to rise 12.1% YoY and net profit by 15.3% YoY in Q2 2024. Management sees sequential margin growth across divisions.
- Q2 growth is expected to be driven by SLB’s International segment, offsetting North American weakness. The International segment contributed 82% of Q1 revenue.
- SLB announced plans to increase shareholder returns from USD 2.5 billion to USD 3 billion in 2024 and to USD 4 billion in 2025.
Micron Technology Inc.: Will Its Expansion into Data Center and AI Markets Result In A Massive Runup? – Major Drivers
- Micron Technology recently provided insights into their fiscal third quarter 2024 performance, shedding light on various strategic and operational aspects that investors may find critical in shaping their investment thesis.
- Amid a challenging global semiconductor landscape characterized by rapid technological advancements and fluctuating demand cycles, Micron appears cautiously optimistic about the future, driven by strategic investments and a focus on high-margin products.
- 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.
Play the Hand You’re Dealt; Bullish Outlook Intact; Remain Overweight Large-Cap Growth; Tech Buys
- We continue to play the hand we have been dealt; i.e., riding the trend higher on the SPX and Nasdaq 100, and being overweight large-cap growth
- Russell 1000 GrowthVs.Value ratio is breaking out from a 4-year base, suggesting growth’s outperformance is likely to continue in the months ahead. Growth outperforming during bull markets is no surprise.
- Latest bullish developments include the equal-weighted Nasdaq 100 (QQQE) breaking out from a 4-month base, while Discretionary (XLY) displays a 6-month base breakout and RS is reversing its YTD downtrend
CarMax Inc.: Operational Efficiencies In Reconditioning & Logistics Expanding The Bottom-Line? – Major Drivers
- CarMax has reported its fiscal 2025 first quarter results, revealing a mixed financial scenario.
- This analysis aims to objectively evaluate the performance by weighing the key positives and negatives reflected in the data and future company outlook.
- Starting with the positives, CarMax noted several encouraging business trends, such as a stabilization in vehicle values and a decrease in average vehicle selling prices, which fell by approximately $700 per unit.
A Bad Break For Bulls… What’s Next?
- BTC hits multi-month range lows amid heavy liquidations and bearish market structure.
- Altcoins experience significant losses, with many sectors down 20%-50% in recent weeks.
- ETH and SOL spot ETFs signal growing institutional interest despite current market struggles.
BBW: Snapping the Store – Milan Edition – Looking at Expansion, Reiterate Buy
- We are reiterating our Buy rating, $41 price target and projections after visiting franchised stores in Milan, Italy.
- With the company ramping up penetration with commercial partners and international franchisees, we believe it will be increasingly important for investors to understand and appreciate what we believe are the impressive economics of the franchised Build-A-Bear business.
- Our Milan visits reiterated both the ability to recreate the experiential aspect of the Build-A-Bear operating model with partners and what we believe can be the lucrative nature of the business.
GES: Snapping the Store: Milan – Guess Jeans Launch – Reiterate Buy, $37 PT
- We are reiterating our Buy rating, $37 price target and projections for Guess?
- as we begin our Milan tour with the global rollout of the new Guess Jeans line, which debuted last week.
- For Milan, Guess Jeans launched at La Rinascente’s (the leading Italian luxury department store) flagship Milan location (across from the Piazza del Duomo) with an intense merchandising campaign, including taking over the front of the store, in-store signage and a key event with influencers.
GES: 2H Signposts: Elevation and Escalation for Guess?; Reiterate Buy & $37 PT
- We are reiterating our Buy recommendation, $37 price target and projections as we look at key trends for 2HFY24 and beyond for Guess?
- We believe the company remains focused on driving upside via both elevation and escalation.
- In terms of elevation, Guess?
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