Markets closed mostly lower on Monday, with the S&P finishing the session off .39% while tech shares were pressured again pushing the Nasdaq down 1.20% for the day. The Dow was able to squeeze out a small gain. Asia stocks rallied overnight as China is setting up to remove Covid lockdowns. Europe indexes are also ion the green this morning. U.S. futures are pointing to a rally, the Dollar and Yields are lower while Oil and Gold are higher.
It was an interesting start to the week, with stocks trying to muster a green session only to find pressure into the afternoon to close mostly lower led by tech/growth names. Today it looks like we will rally with not much of a catalyst to speak of outside of the news that China is setting to remove Covid restrictions. There is also a lot of Fed Speek today with Powell set to speak at the Future of Everything Festival hosted by the WSJ: https://www.wsj.com/articles/wsj-future-of-everything-festival-features-interviews-with-the-feds-jerome-powell-and-singer-j-balvin-11652779801?mod=hp_theme_foe-festival-ribbon
There are also other members speaking throughout the day starting with Bullard at 8am this morning. Hopefully no-one puts their foot in their mouth.
The SPY closed pretty much right at the $400 handle yesterday, thankfully. If this can hold think $419 or so comes next:
$YOU is a name I have seen before. It IPO'd last June at $31 and hit a high of $65 in August of last year. I have seen their terminals at Airports and always wondered how they could be profitable, so never really took a deeper dive. Then someone in the chatroom posted an entry and it caught my eye. I did not know they reported earnings yesterday morning and once I looked, thought what a great story. They have tremendous growth(100% yoy), $663 mil cash on hand(or 17% of its valuation), announced a buyback, and should have some crazy tailwinds as the travel boom roars into the summer. If you read their earnings letter it is pretty impressive the growth they are seeing, and their retention rate as well:
And then you start looking at what their mission is and its just not getting thru Airport security quickly. They partnered with the Raiders last year to provide proof of vaccination of entry to games: https://www.sporttechie.com/las-vegas-raiders-use-clears-health-pass-to-mandate-proof-of-vaccine-for-fans
They also partnered with HSS : https://www.beckershospitalreview.com/patient-safety-outcomes/new-york-hospital-first-to-implement-clear-s-health-pass-to-improve-health-screenings.html
The more I do some digging on YOU, the more I start thinking it is the DOCU of security. There is much more I can write here but for the sake of time, hopefully you get an idea of why I added calls yesterday. I may look to add some later dated strike this morning for the eventual move back over $40 on YOU - think it can do it even if the market goes back into sell mode. Will try and post a better DD post in the next few days:
SSYS reported a strong Q after the close, making it two Q's in a row of strong results. JPM updated the stock to Neutral this morning with a $23 PT. I don't see any other analyst changes as I write this. The last report, the stock spiked at the open, testing highs, before melting all the way back into the red. One of these reports will send it... may look to add some spec calls for a move into the $20s in the coming week or two:
Make it 4 green sessions in a row for IBM as the stock tested the $136s before pulling back at the end of the session with the rest of the market. A close above that $136 handle today should bode well for the retest of the $140s this week:
BPT is nearing its multi-year high of $17.20. Think that comes in the next few days if Oil stays above $110:
If the market holds this morning, will be watching the same names form yesterday for some possible weekly calls: SAM, U, TRIP, and maybe RBLX.
Here are the analyst changes of note for today:
| Stratasys upgraded to Neutral following Q1 beat at JPMorgan |
| JPMorgan analyst Paul Chung upgraded Stratasys to Neutral from Underweight with a price target of $23, down from $25. The company posted Q1 results ahead of expectations on broad strength across system sales, which included early momentum for the Origin and H350 systems, Chung tells investors in a research note. The analyst believes Stratasys' consumables segment should begin to see some acceleration later this year, "which should buoy overall gross margins more so in 2023." He is "incrementally constructive on the print," and senses management is focused on improving products, driving margins higher, and investing in growth. He cites the pullback in the stock's valuation and improved execution for the upgrade |
| Take-Two price target lowered to $190 from $215 at Oppenheimer |
| Oppenheimer analyst Andrew Uerkwitz lowered the firm's price target on Take-Two to $190 from $215 and keeps an Outperform rating on the shares. Take-Two delivered lower-than-expected Q4 results caused by tough year-over-year comps, delays, and macro issues, Uerkwitz tells investors in a research note. While the analyst expects net bookings and recurrent consumer spending growth to recover toward 2H23 and further acceleration in FY24, catalysts might be lacking near-term, he adds |
| Tesla upgraded to Hold from Sell at Tudor Pickering |
| Tudor Pickering analyst Matt Portillo upgraded Tesla to Hold from Sell. With the stock down 31% this year, Portillo sees better-than-expected automotive gross margins and what he expects to be upside to the consensus 2022 earnings view as reasons to be in a "neutral" position on the stock at current levels, he said |
| Weber price target lowered to $6.50 from $8.50 at JPMorgan |
| JPMorgan analyst Megan Alexander lowered the firm's price target on Weber to $6.50 from $8.50 and keeps a Neutral rating on the shares post the fiscal Q2 results. The analyst says the guidance came in well below her already reduced forecasts, prompting her to cut numbers again |
Salesforce price target lowered to $185 from $225 at UBS |
| UBS analyst Karl Keirstead lowered the firm's price target on Salesforce to $185 from $225 and keeps a Neutral rating on the shares. The analyst states that his checks to assess the degree of deteriorating macro backdrop impacting customer demand cited a downtick on deterioration in the macro backdrop, even though he remains "attracted" by Salesforce valuation levels |
| Take-Two guidance 'better than feared,' says Jefferies |
| Jefferies analyst Andrew Uerkwitz said Take-Two's (TTWO) FY23 guidance came in slightly light on top-line and ahead on the bottom compared to the standalone numbers in its S4 filing, which he calls overall "better than feared." Almost the entire FY23 slate is now known, but the FY24/25 plan "remains a mystery aside from the amount," which is "a lot" with over 50 pieces of content, said Uerkwitz. Given his view that the next three years should see the content pipeline come to fruition and the Zynga (ZNGA) acquisition will provide diversification, he remains bullish with a Buy rating and $231 price target on Take-Two shares |
| Bed Bath & Beyond price target lowered to $17 from $26 at B. Riley |
| B. Riley analyst Susan Anderson lowered the firm's price target on Bed Bath & Beyond to $17 from $26 and keeps a Buy rating on the shares ahead of earnings. Specialty retailers with exposure to fashion likely have a chance to outperform in Q1 as channel checks continue to show consumers gravitating towards fashion like dresses, workwear and occasion apparel with limited promotions, Anderson tell investors in a research note. However, freight and other cost pressures are likely to weigh on profitability this quarter and the rest of the year, says the analyst. She adds that while the macro environment remains challenging with decade-high inflation, spending "remains solid in key categories. |
And here is what I am watching today: YOU, SSYS, SAM, TRIP, U, RBLX, ROKU, CMG, DUST, JDST, and IBB.
Let's have a great day!
-JB