Amazon, Apple, Alphabet, Meta, Microsoft, and Nvidia are projected to grow earnings by 30% in Q2, compared to the remaining 494 stocks, which have a 5% profit growth rate.
Based on the average S&P500 earnings increasing 8 – 10% in 2024, EPS should hit $240.
ASX Welcomes First-Ever Spot Bitcoin ETF as Speculation Grows for SOL and ADA ETF Applications
VanEck has extended its reach Down Under, offering Australians the opportunity to purchase their ASX-traded spot ETF, VBTC.
The new exchange-traded fund is being introduced by US investment management firm VanEck, with live trading planned for June 20th. The fund (ticker VBTC) will hold Bitcoin directly on behalf of investors, which the institutions’ APAC CEO believes will be a huge milestone for adoption Down Under.
“VBTC also makes Bitcoin more accessible by managing all the back-end complexity. Understanding the technical aspects of acquiring, storing and securing digital assets is no longer necessary.” – Arian Neiron, VanEck’s Asia-Pacific CEO and Managing Director
It will be interesting to see if the renaissance of crypto ETFs in the US will make its way to Australia. Popular US products like BlackRock’s IBIT smashed trading records after a month or two – can VanEck’s VBTC follow suit?
Intel Corporation – Common is under Algo Engine buy conditions.
The launch of Intel’s Gaudi 3 AI accelerator and the reorganization of its foundry business are positive signs for future growth. During the first quarter, Intel’s revenues increased by 8.5% Y/Y to $12.7 billion.
The launch of Intel’s Gaudi® 3 AI accelerator in Q3, which appears to be more powerful than NVIDIA’s flagship H100 GPU, should also help the company improve the performance of its data center business, revenue to total $56 bln (+3% y/y) in 2024, and jump to $65.3 bln (+17% y/y) in 2025. Adjusted EBITDA is set to total $13.8 bln (+7% y/y) in 2024, and rocket to $20.3 bln (+47% y/y).
Effective from 1Q 2024, the company modified its segment reporting, with revenue now coming from the following business units:
1. Intel Products
2. Intel Foundry
3. All other
Client Computing Group (CCG) – this segment generates about half of the company’s revenue. It supplies central processing units for desktop PCs and notebooks.
Data Center and AI (DCAI) – The key products in this segment are CPUs, GPUs and Gaudi AI accelerators.This segment has accounted for just under 30% of the company’s total revenue in recent years
Intel Foundry – the segment that includes chip manufacturing for Intel’s own needs as well as for external customers. Intel entered the market of contract manufacturing of semiconductors in 2021 as Intel Foundry Service (IFS) to capitalize on the growing demand for foundry capacity. To provide transparency in the segment’s operations, the company in its reporting separates revenue generated from external customers and revenue from inter-segment sales within Intel. As of the end of 2023, revenue from external customers totaled $953 mln (+96% y/y), or 5% of total IFS revenue of $18.9 bln (-31% y/y).
Even though IFS revenue from external customers is relatively small, Intel has ambitious plans to expand the plants by investing its own funds and with the help of government subsidies (Under the CHIPS Act the US government has given Intel $8.5 bln in grants and the option to draw $11 bln in federal loans).
CrowdStrike Holdings, Inc. – Class A Common delivered strong Q1 FY25 results with 33.5% ARR growth and 41.8% free cash flow growth.
CrowdStrike raised its full-year revenue guidance and is expected to continue delivering 30%+ growth in the near-term
Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary is expected to switch to Algo Engine buy conditions near the $80 support level.
EPS is expected to bottom in 2025 and grow over 10% yearly until 2028. Meanwhile, revenue growth is expected at around 8% for the next three years.
On April 25, 2024, Intel reported its Q1 FY24 earnings with revenue of $12.7 billion, a 9% increase YoY, and non-GAAP EPS of $0.18, both beating Wall Street expectations. However, the revenue guidance of $12.5 billion to $13.5 billion fell short of Wall Street’s expectation of $13.63 billion, leading to a plunge in the stock price to around $30 per share.
Intel is a high-risk recovery play in the chip space. We consider the current share price to be at an inflection point, and it will begin to rise in mid-to-late 2024. The first positive catalyst is the US government’s CHIPs Act funding payment. A multi-year recovery should follow, driven by innovation and AI data center sales.
Shopify Inc. Class A Subordinate Voting revenue is expected to grow by 20% to $8.5 billion in 2024. Currently trading at 8.8x estimated sales, Shopify remains undervalued relative to its software and e-commerce peers with a similar growth profile.
We rate SHOP a buy within the $50 – $60 price range.
Q1 2024 revenue increased 23% to $1.9 billion compared to the prior year, which translates into year-over-year growth of 29% after adjusting for the sale of our logistics businesses
PayPal Holdings, Inc. – Common first-quarter results show a 9% revenue increase and a 14% rise in Total Payment Volume, driven by enhanced features in Venmo and strategic market expansions.
The number of people using Venmo has gradually increased, from a low of 3 million in 2015 to a high of nearly 78 million as of the end of 2023.
FCF, which touched $1.763 billion in Q1 2024 alone. This resurgence can be attributed to, among other factors, robust management strategies, such as buying back shares aggressively in response to the stock’s depressed valuation, which suffered from a significant pullback of 80% in the last few years.
In 2023 alone, PayPal redirected $4.4 billion to buybacks,
NVIDIA Corporation – Common Q1 earnings produced record revenues and profits as the Data Center business continued to grow rapidly. The company announced a ten-for-one stock split. Nvidia shares are now trading at 40x forward earnings.
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