Buying more Tencent ADRs for my portfolios
On Monday, March 24, I’m adding these Tencent ADRs (TCEHY) TO my Jubak Picks and Volatility Portfolios.
So far, the big issue with big tech earnings is valuation
From BIG Tech earnings results so far, what seems clear is that if a company smashes through expectations like Alphabet (GOOG) did, the stock will climb. If, however, you merely match expectations like Meta Platforms (META) and Microsoft (MSFT) then shares retreat.
Is a guidance cut from Texas Instruments another sign of a top?
One indicator that I’m carefully monitoring is the guidance in third quarter earnings conference calls about the fourth quarter. I’m checking to see if the cuts to guidance and that Wall Street disappointment might set in a quarter early. If that looks like the case then I’d think about selling now instead of in January 2025.
Micron surge shows why it’s so hard to leave this market
This is why it’s so hard to sell this market in spite of stunningly high valuations. “This” is the 14.7% gain today in shares of Micron Technology after the company announced results for the fiscal fourth quarter and forecasts for fiscal first quarter revenue and earnings yesterday.
Nvidia beats even the most optimistic earnings forecasts
Yesterday, May 22, after the market close, Nvidia (NVDA) crushed Wall Street projections for revenue and earnings for the company’s fiscal first quarter of 2025. Nvidia reported that revenue soared 262% year-over-year to a record $26 billion, marking an 18% quarter-over-quarter increase. Adjusted earnings per share climbed 461% to $6.12. The Wall Street consensus had called for revenue of $24.65 billion and earnings per share of $5.59. And it even beat the Wall Street “whisper number,” which in a bullish momentum situation like this runs considerably above the official consensus. Data center revenue hit a record $22.6 billion, up 427% year over year. Data center revenue represents 87% of Nvidia’s total sales. For the current fiscal second quarter of 2025 Nvidia told investors to expect sales of $28 billion, up 107% year over year.
Please Watch My New YouTube Video: Hot Button Moves Now Buy ASML
Today’s Hot Button Moves NOW video is Buy ASML Holding (ASML). ASML is the only global manufacturer of the most cutting-edge chip-making equipment, a technology called Extreme Ultra Violet Lithography (EUV). The equipment allows for a smaller chip, more transistors on the chip, and more power for less silicon. ASML’s earnings report on April 16 was disappointing, with fewer than expected orders, a situation that will likely continue into the next couple of quarters. This resulted in a big drop in earnings and the stock taking a big hit. But, this is the only game in town for this equipment, and anything chip that uses the new 2-nanometer, 3-nanometer, and 5-nanometer technologies will be made on ASML equipment. So orders will not stay down for long. I would use this weakness to buy ASML Holding. It’s not cheap, but it’s not likely not get much cheaper than this, and as geopolitical chip wars settle, orders for ASML will jump rebound. ASML Holding is a member of my long-term 50 Stocks Portolio.
Apple revenue falls again, warns holiday quarter will be flat
So let’s see how the market takes this tomorrow.
Today stocks staged an impressive upside more. The Standard & Poor’s 500 closed up 1.89% and the NASDAQ Composite ended the day 1.78% higher. The small cap Russell 2000 was the day’s best performer with a win of 2.67% Tomorrow? Well, the October jobs report released at 8:30 will certainly help set the tone for the day with a weak report likely to reinforce the belief that the Federal Reserve is done aiding interest rates. But given how much of the recent bounce has been fueled by a return of optimism about technology stocks, it’s likely that Apple’s disappointing results, announced after the close of trading today, Thursday, November 2, will determine the direction of the trend.
Please Watch My New YouTube Video: How Long Can a Dangerously Narrow Market Run?
How Long Can a Dangerously Narrow Market Run? Certainly not forever. But longer than you might imagine. The Nasdaq 100 and S&P 500 have increasingly diverged. The week before last, the NASDAQ 100 (which includes the largest technology companies), was up 3.15% and the S&P was up only .28%. Over the last three months, the NASDAQ 100 was up 18.88% and the S&P was up 6.14%. For 2023 to date through May 29, the NASDAQ was up 31%, and the S&P was up 10%. NASDAQ tech stocks, like Nvidia (NVDA), are driving the index up and that is pulling the rest of the market with it. The remainder of the market, however, is weighed down by warnings of a tough retail economy, companies reporting negative growth, and inflation problems. At the moment, investors are betting on technology’s big growth to avoid problems from a slowing economy, prolonged high inflation, and the Fed’s rate hikes. The result is a very narrow market, with a small number of specific stocks propping it up. History says, that eventually, the market rally will either expand, with more stocks participating, or it will fail because you can’t sustain an upward trend with fewer and fewer stocks. Narrow markets can run for longer than you might think. But it’s not too early to locate the exits.
TSMC looking for chip inventory correction to end in second half of 2023
Well, Taiwan Semiconductor Manufacturing (RSMC) ought to know. The world’s largest chip foundry makes semiconductors for just about everyone. And last week the company said that it expects revenue to fall in the first half of 2023 as semiconductor companies cut orders and reduce inventory. But, the company says, it expects demand to return to “normal” in the second half o 2023.
Microsoft reportedly plans to cut 11,000 jobs; this is a serious indicator for the economy
Granted these are all reports from outside news sources but there are a number of them. Where there’s smoke there might well be fire. U.K. broadcaster Sky News has reported that Microsoft plans to cut about 5% of its workforce or about 11,000 roles.
Selling ASML Holding today in an effort to get ahead of the trade war with China
Today I’m selling ASML Holding (ASML) out of my long-term 50 Stocks Portfolio. My take on Asmel hasn’t changed: this is one of the key chip equipment companies in the drive to produce smaller and denser chips. What has changed in the market and the global economy. I think that technology, and especially chip stocks, are in a downtrend that has a lot longer to run. And that recent U.S. restrictions on advanced chip technology exports to China will set off a trade war that will come down heavily on companies such as ASML.
Apple tells suppliers to cut iPhone plans by as many as 6 million units in second half of 2022.
Apple (AAPL), which once urged suppliers to increase production of its new iPhone, is now telling them “Never mind,” according to Bloomberg. The anticipated surge in demand has failed to materialize. the company had told suppliers to increase production in the second half of the year ahead of a projected increase in iPhone sales in the second half of 2022. Now Apple is aiming to produce 90 million iPhones in the period. That’s roughly the same level as in the second half of 2021 and in line with Apple’s original forecast this summer.
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