Daily Brief United States: Micron Technology, Copper, Diamondback Energy, Formfactor Inc, Xiao I , eXp World Holdings, Box Inc Class A, Boston Scientific, Avantor , Cable One Inc and more

• Expect Micron to report strength in AI, highlight the company’s HBM efforts, and quote McKinsey’s trillion-dollar forecast in their earnings call tomorrow
• Although Nvidia’s growth has really helped the DRAM market, along with 2023 CapEx cuts, there are important concerns of double-ordering which could lead to a collapse soon
• Semiconductor market revenues have leveled off since December 2023, hinting a return to more normal growth for the rest of the year

• A slowdown in China’s property and manufacturing sectors along with high refining ouput has led to a significant increase in copper inventories, contributing to short-term demand concerns.
• Major copper miners face production challenges, risking future supply deficits amid growing demand from the photovoltaic and EV industries.
• Asset managers have reduced their long positions in copper due to near-term market conditions, reflecting a cautious outlook on immediate price movements.

• Semiconductors (SMH,SOXX,NVDA,AVGO) have been leadership since late-2022, but they’re extended and starting to see profit taking as market participants rotate into other laggard areas of the market (especially Energy).
• The question is whether this new trend lasts a few days, or if this is the start of longer-term trend.
• If there will be any lasting rotation away from Technology/semiconductors, SPX and QQQ would need to break strong short-term supports at 5370-5380 and $468-469, respectively. Until then, Tech/semis remain leadership

• FormFactor delivered mixed first-quarter results for the fiscal year 2024, with its revenue closely aligning with the upper end of forecasts due to robust demand in the DRAM probe card sector, corroborated by significant advancements in setting standards for testing high-bandwidth memory (HBM).
• However, the company encountered challenges as non-GAAP earnings per share (EPS) dipped below the anticipated range primarily due to a less favorable product mix across its segments and heightened warranty costs in the Probe Cards segment.
• 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.

• Xiao-I (NASDAQ: AIXI) is leveraging its existing relationships and signing new clients at an impressive pace.
• The company has announced nearly a dozen new products or relationships utilizing its AI platforms in the past two months.
• Competition remains intense in the AI market and we think investors are questioning if Xiao-I has the financial capacity to remain competitive across multiple industries as private and public companies continue to invest heavily in its core markets.

• eXp World Holdings is a cloud-based real estate brokerage business with a stock price of $9.91 and a market cap of $1,562 million
• The company offers agents an 80% commission retention through a revenue share agreement, a significant improvement over the industry standard
• eXp World Holdings operates without physical offices, providing a cost-effective and innovative alternative to traditional real estate brokers.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Box, Inc. recently reported its first-quarter fiscal 2025 results, which presented a mixed picture of the enterprise content management and storage company’s performance and strategic trajectories.
• Here’s a succinct summary of the core facets of the results and an investment thesis based on the details provided.
• Starting with the positive aspects, Box, Inc. achieved a revenue growth rate of 5% year-over-year, with an 8% increase on a constant currency basis, indicating a resilient top-line growth despite overarching economic pressures.

• Boston Scientific Corporation reported robust first-quarter 2024 results that exceeded expectations, driven by an expansive and diversified product portfolio and effective execution across its various business units.
• The company achieved an impressive 15% operationally and 13% organically in sales growth, surpassing the high-end guidance range of 7% to 9%.
• Additionally, all business units and regions recorded notable double-digit growth during the quarter, reflecting strong market penetration and execution.

• Avantor delivered its first quarter results, reporting a revenue of $1.68 billion which aligns with their previous guidance, however showing an organic decline of 6.3%.
• This reflects continuous tough market conditions similar to the previous quarter.
• Notably, their adjusted EBITDA margin rose impressively to 16.8%, and the company achieved an adjusted EPS of $0.22, both figures surpassing expectations.

• Cable One has demonstrated a mixed performance in the first quarter of 2024, marked by a decrease in total revenues from the previous year, coinciding with competitive turbulence mainly from emerging fixed wireless and additional fiber competitors.
• Total revenues recorded were $404.3 million compared to $421.9 million in the prior year quarter, largely driven by a significant drop in video subscribers.
• Despite this, the company showcases operational resiliency and strength in residential broadband customer base growth, with an increase of approximately 6,900 new customers, hinting at successful adaptations to a changing market environment.