In today’s briefing:
- Synopsys Inc.: How Is It Tackling The China Market & Dealing With Macro Uncertainties? – Major Drivers
- EQD | NDX OVERSOLD: A High Probability LONG Trade Idea
- General Motors Abruptly Pulls The Plug On Cruise
- Oracle’s Astonishing SaaS Expansion Promises to Catapult Stock Prices! – Major Drivers
- Bank OZK – Most CRE Loans/Total Loans of Any US Bank & Dramatically Worsening Credit Metrics
- C3.ai: Will Its Expansion in Federal & Defense Sectors Be A Breakthrough Move? – Major Drivers
- Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! – Major Drivers
- IMMR: The Business of Profits
- GES: Snapping the Store: All Dressed Up; Reiterate Buy, $23 PT
- Macy’s Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
Synopsys Inc.: How Is It Tackling The China Market & Dealing With Macro Uncertainties? – Major Drivers
- Synopsys reported a strong performance for its fourth quarter and fiscal year 2024, achieving record revenue and earnings.
- The company crossed the $6 billion revenue mark, with a 15% year over-year increase, driven by its strategic focus on high-growth segments like AI, silicon proliferation, and software-defined systems.
- Synopsys has expanded its bottom line significantly, with EPS growing at a 24% CAGR over the past five years.
EQD | NDX OVERSOLD: A High Probability LONG Trade Idea
- The Nasdaq 100 Index (NDX) selling lead the index straight into OVERSOLD territory on December 18th.
- The sell off is overdone, our DAILY NDX model suggests a high probability LONG trade for Thursday.
- High volatility may affect trades, triggering stops and making it difficult to hold without taking the risk of big losses, Vertical Spreads (Bull PUTs) are a better instrument choice.
General Motors Abruptly Pulls The Plug On Cruise
- GM announced it will no longer continue to fund its loss making Cruise subsidiary, effectively ending its RoboTaxi ambition. Market reaction? Nothing.
- Microsoft has already announced it will write off its $800 million investment made back in 2021 when Cruise was valued at $30 billion
- Root cause? The tsunami that was triggered by Cruise’s botched response to an accident in October 2023.
Oracle’s Astonishing SaaS Expansion Promises to Catapult Stock Prices! – Major Drivers
- Oracle Corporation’s recent earnings for the second quarter of fiscal year 2025 highlighted a strong performance driven by significant growth in their cloud services segment.
- Total revenue reached $14.1 billion, reflecting a 9% increase from the previous year, while non-GAAP earnings per share were reported at $1.47, marking a 10% growth year-over-year.
- Such results slightly surpassed expectations, given the challenging currency fluctuations owing to a strengthening U.S. dollar.
Bank OZK – Most CRE Loans/Total Loans of Any US Bank & Dramatically Worsening Credit Metrics
- Bank OZK (OZK US) has more CRE loans to total loans of any US bank at 72% in 3Q24
- Risks of CRE loans are real now and historically, they have high loss rates, in bad times
- The bank is seeing a surge in NPAs , but its credit costs are lagging – make up in 4Q24?
C3.ai: Will Its Expansion in Federal & Defense Sectors Be A Breakthrough Move? – Major Drivers
- C3.ai reported its second-quarter fiscal year 2025 results, reflecting a continuation of strong performance with several noteworthy highlights and challenges.
- The company posted total revenue of $94.3 million, representing a 29% year-over-year increase, which exceeded the high end of their revenue guidance.
- Notably, subscription revenue rose by 22% to $81.2 million, making up 86% of total revenue, while professional services revenue was $13.2 million.
Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! – Major Drivers
- Adobe’s recent earnings release reflects a period of consistent growth and innovation, demonstrating both strengths and challenges.
- For the fiscal year 2024, Adobe achieved record revenue of $21.51 billion, marking an 11% year-over-year increase.
- This growth was fueled by robust performance across its business segments, most notably within its Digital Media and Digital Experience divisions.
IMMR: The Business of Profits
- IMMR reported fiscal Q2 (October) after having changed its fiscal year end to April. IMMR changed its fiscal year end after the purchase of approximately 11 million shares of BNED.
- The quarter was continuation of IMMR reporting increased revenue from fixed rate royalties while per unit royalties declined slightly from the prior year.
- IMMR reported revenue of $14.1 million compared to our estimate of $10.1 million. We were not expecting a large bump in fixed royalties like IMMR reported in the quarter.
GES: Snapping the Store: All Dressed Up; Reiterate Buy, $23 PT
- We are reiterating our Buy rating, $23 price target and projections for Guess?
- after visiting stores in the Metro New York City and Long Island.
- As we near the heart of Holiday party and event season, Guess?
Macy’s Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
- The third quarter 2024 earnings results for Macy’s, Inc. present a mixed picture of the company’s financial health and operational strategy.
- On the positive side, Macy’s showed resilience with sales of $4.7 billion, reflecting a decline of only 2.4% from the previous year, aligned with the company’s expectations.
- Notably, the performance of Macy’s First 50 locations exhibited a 1.9% increase in comparable sales, marking three consecutive quarters of growth.
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