IBD digital | Technology Cadence Design Breaks Out, But Pulled Down On Peer's Miss. Can It Rebound?

 

• INVESTOR'S BUSINESS DAILY and JAMES DETAR
• 02:59 PM ET 12/05/2024

Cadence Design Systems (CDNS) is on a roller-coaster ride. CDNS stock soared past the buy point in a cup-with-handle base Wednesday, rising toward its all-time high, set on June 20. On Thursday, Cadence fell nearly 6% after peer Synopsys (SNPS) reported disappointing quarterly results and a weak forecast.

It remains to be seen whether electronic design software maker Cadence will quickly recover and continue its strong upward drive, or whether Synopsys' results indicate weakening in the chip design sector overall, which could pull Cadence down too.

Meanwhile, the IBD Relative Strength Rating for Cadence stock got an upgrade from 69 to 76 on Thursday amid rising earnings and revenue growth rates. The 76 rating shows that Cadence is in the top 25% of all stocks for price performance this past year.

Cadence Design is an adjacent play on the artificial intelligence industry juggernaut. It provides software to the chipmakers striving to catch up with AI market leader Nvidia (NVDA).

Cadence No. 1 In Its Industry

One thing that could help shield Cadence from a sector downturn is that it earns the No. 1 rank among its peers in the 12-stock Computer Software-Design industry group. Synopsys and Autodesk (ADSK) are also among the group's highest-rated stocks.

Regarding top and bottom line numbers, Cadence Design Systems has posted two quarters of accelerating earnings growth. In fact, over the last three stanzas the company reported a sharp turnaround.

Cadence saw a 9% dip in earnings for the March-ended quarter, a 5% rise and then a 30% surge last quarter to $1.64 per share. Top line growth has also moved higher over the same time frame. It recorded a 19% gain in revenue in its most recent quarter, to a record $1.28 billion.

Even Stronger Results Forecast

Analyst consensus is for earnings to surge 32% in the current quarter on a 26% spike in sales to $1.35 billion, according to FactSet.

Cadence Design Systems has a 309.96 buy point in its current base, a 3-1/2 month long cup-with-handle pattern.

IBD's unique Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database. The best-performing stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Cadence Design Systems can rebound and clear that threshold.

Please follow James DeTar on Twitter @JimDeTar 

Cadence | Synopsys | Icrx | Amat | Chip companies

 大家可以留意一下芯片公司的上游两个产业的财报和预期情况：

一类是eda芯片设计，两个龙头：Cadence， Synopsys

一类是芯片材料公司：lrcx, amat

我记得它们的指引都放缓了，一个是受中国市场影响，一个是供应链受关税影响。nvda供不应求不一定是好事。

SABR | Dec 5 2024 | What I learn from EMA200 EMA100 EMA20 | Daily, weekly, monthly chart

 D chart 

W chart

M chart

H chart 

Above EMA20 - 3.75, $3.9 to $4.0 is the area to sell for the short term gain

Dec 5 2024 | Aftermarket | Gainers | Losers

 Gainers Earnings:

IOT 7%

ULTA 12%

Docu 14%

GTLB 6.45%

RBRK 19.27% 

Path 7% down 

APPF 60% down, why?

AAL stock | American Airlines target raised to $18 on positive 4Q update

EditorLina Guerrero

Analyst Ratings

Published 12/05/2024, 01:53 PM 

Despite the positive news, the analyst expressed caution regarding the potential costs linked to the new distribution strategy, which could offset the gains from revenue recapture.

This concern is set against a backdrop where several airlines have demonstrated substantial improvements in leverage, whereas American Airlines (NASDAQ:AAL)' net leverage remains high, at over four times. InvestingPro data reveals a significant debt burden with total debt of $39.2 billion and a concerning current ratio of 0.57, indicating short-term obligations exceed liquid assets.

The new price target of $18 is based on a valuation multiple of 5.5 times the airline's projected 2026 enterprise value to EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs). This multiple represents the analyst's method of valuing the airline's financial prospects and overall health.

The Hold rating aligns with the broader analyst consensus, with targets ranging from $10 to $20 per share. The stock currently trades at a P/E ratio of 41.29, suggesting a premium valuation compared to industry peers. The Hold rating suggests that Melius Research advises investors to maintain their current position in American Airlines shares at this time.

The analyst from Melius Research highlighted the key drivers behind the revised price target, citing the recent fourth-quarter update and the renegotiated credit card agreement with Citi as pivotal factors.

The analyst noted that with these developments now public, the focus would likely shift to the potential benefits that may arise from American Airlines' change in distribution strategy. With a market capitalization of $11.36 billion and trailing twelve-month revenue of $53.61 billion, American Airlines maintains its position as a prominent player in the passenger airlines industry.

Despite the positive news, the analyst expressed caution regarding the potential costs linked to the new distribution strategy, which could offset the gains from revenue recapture. This concern is set against a backdrop where several airlines have demonstrated substantial improvements in leverage, whereas American Airlines' net leverage remains high, at over four times.

The new price target of $18 is based on a valuation multiple of 5.5 times the airline's projected 2026 enterprise value to EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs). This multiple represents the analyst's method of valuing the airline's financial prospects and overall health. The Hold rating suggests that Melius Research advises investors to maintain their current position in American Airlines shares at this time.

In other recent news, American Airlines has been the subject of several significant developments. The company has updated its earnings per share (EPS) forecast for December, now expecting $0.55 to $0.75, an increase from the previous estimate of $0.25 to $0.50. This has resulted in Goldman Sachs maintaining a Neutral rating on the airline's shares, despite the firm adjusting its own December quarter EPS estimate for American Airlines to $0.65 from the earlier $0.35.

American Airlines has also announced a significant new 10-year co-brand credit card partnership with Citi, set to commence in 2026. This agreement is expected to boost the airline's annual cash compensation from its co-brand credit card and other partnerships by 10%.

In addition, American Airlines received an upgrade from Seaport Global Securities from Neutral to Buy, reflecting confidence in the company's revenue potential and an improved risk/reward scenario.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

ASP.NET Combobox dropdownlist with Images

#ImageDropDown #ImageCode #ImageJS

Here is the article. 

Technology | Waymo Expands Robotaxi Rides Across Los Angeles

 

1. Technology

Waymo Expands Robotaxi Rides Across Los Angeles

By Janet H. Cho

Updated Nov 12, 2024, 6:15 pm EST / Original Nov 12, 2024, 5:46 pm EST

Coding | Add image in dropdownListBox

 https://stackoverflow.com/questions/2965971/how-to-add-images-in-select-list

Stock Market Today Dow Jones Hits High, Bitcoin Jumps On Powell; Nvidia Ready To Run?

ED CARSON

07:57 PM ET 12/04/2024

 

Confluent (CFLT), HubSpot (HUBS), Snowflake (SNOW), Roku (ROKU), SharkNinja (SN), Powell Industries (POWL) and Chipotle Mexican Grill (CMG) all flashed buy signals.

CRM earnings | Dec 4 2024 | 11.06% gain

24-year-old was laid off from her 6-figure tech job—now she shucks oysters for parties: ‘I do feel very happy’

Here is the article. 

Technology Nvidia Rival Marvell's Custom AI Chip Business Drives Earnings Beat. Shares Jump.

 

• REINHARDT KRAUSE
• 10:03 AM ET 12/04/2024

Chipmaker Marvell Technology (MRVL) posted better-than-expected sales in its fiscal third quarter thanks to strong demand for its custom chips for artificial intelligence applications. MRVL stock popped Wednesday on the news.

"Marvell announced better results and even stronger guidance as robust AI demand again drove data center upside," said Susquehanna analyst Christopher Rolland in a report. "During the quarter, custom ASIC/AI products ramped substantially coupled with continued momentum in electro-optics, which grew double-digit quarter over quarter."

Custom AI Chips Ramp Up

UBS analyst Timothy Arcuri said in a report: "We estimate AI revenue in fiscal Q3 was $535 million with $240 million coming from custom ASIC and $295 million from optics."

He added: "Commentary suggests that Marvel's custom silicon programs will drive meaningful growth in data center in fiscal Q4, with optics tracking to another quarter of double-digit growth, taking full-year AI revenue to well in excess of the company's initial $1.5 billion estimate. With momentum in both optics and custom ASIC, AI revenues in fiscal 2026 should eclipse the company's prior $2.5 billion bogey."

Late Tuesday, Marvell reported adjusted earnings of 43 cents a share on sales of $1.516 billion in its fiscal Q3 ended Aug. 3. Analysts polled by FactSet had expected earnings of 41 cents a share on sales of $1.46 billion.

Marvell Stock: Lower Profit Margins

On a year-over-year basis, Marvell's earnings rose 5% while sales climbed 7%. Marvell's Q2 report marked its second straight quarter of declining sales and earnings growth.

"Lower gross margins were the only exception due to the higher ASIC revenue but the company seems to indicate they can maintain around 60% even with higher ASIC revenue," said Jefferies analyst Blayne Curtis in a report.

For the current quarter, the Santa Clara, Calif.-based company expects adjusted earnings of 59 cents a share on sales of $1.8 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of 56 cents a share on sales of $1.74 billion in the fiscal fourth quarter.

On the stock market today, Marvell stock jumped more than 16% to 113.86.

MRVL Stock: Amazon Deal Expanded

Marvell makes custom AI chips for Alphabet's (GOOGL) Google, Amazon (AMZN) and Microsoft (MSFT). On Tuesday the company announced an expanded partnership with Amazon for custom AI chips.

"Leveraging its silicon technologies, Marvel will provide AWS with a broad range of data center semiconductors, including custom AI products (Trainium 2), optical digital signal processors, active electrical cable DSPs, data center interconnect optical modules, and Ethernet switching silicon solutions," said Bank of America analyst Justin Post in a report.

Heading into the Marvel earnings report, shares had advanced 58% in 2024.

While Nvidia (NVDA) dominates in AI chips, rival chipmakers such as Marvel aim to capitalize on strong demand for custom devices. Startup OpenAI reportedly has been in talks with Broadcom (AVGO) for custom AI chips.

MRVL stock holds a Composite Rating of 75 out of a best-possible 99.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

PMN Business | Stocks Buoyed by Powell's Remarks; Euro Trims Gain: Markets Wrap | Dec 4 2024

Stocks Buoyed by Powell's Remarks; Euro Trims Gain: Markets Wrap

Stocks hit a fresh peak as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The euro pared gains as the French government fell after a no-confidence vote in Parliament.

Author of the article:

Bloomberg News

Rita Nazareth

Published Dec 04, 2024  •  Last updated 3 minutes ago  •  6 minute read

(Bloomberg) — Stocks hit a fresh peak as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The euro pared gains as the French government fell after a no-confidence vote in Parliament.

A rally in big tech drove the S&P 500 toward its 56th closing record in 2024. The Nasdaq 100 climbed over 1%. Nvidia Corp. led a gauge of the “Magnificent Seven” megacaps higher as the group extended this year’s surge to 62%. Salesforce Inc. jumped 9% and Marvell Technology Inc. soared 24% as their results boosted hopes both companies will keep benefiting from an industrywide boom in artificial intelligence.

Powell, who participated in a moderated discussion, also said officials can afford to be cautious. One of his favorite barometers of the economy — the Beige Book — showed economic activity increased slightly in November after little change in preceding months, and US businesses grew more upbeat about demand prospects.

“Right now, the odds favor another cut this month followed by a pause in January, but a significant change in the jobs landscape could rearrange those puzzle pieces,” said Chris Larkin at E*Trade from Morgan Stanley.

The S&P 500 rose 0.5%. The Nasdaq 100 climbed 1.1%. The Dow Jones Industrial Average added 0.5%.

Treasury 10-year yields declined four basis points to 4.18%.

To George Smith at LPL Financial, momentum could continue for stocks as December has been a good month for market seasonals. 

It’s overall the second-best performing month since 1950 — with a 1.6% average gain — and the third-strongest over the past five years, according to Smith. When studying the proportion of positive monthly returns since 1950, December often delivers the highest proportion of positive monthly returns — around 74%.

MarketWatch | Mark Hulbert These stocks aren’t likely to beat the S&P 500 next year — for this one reason

ROKU stock

 

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FICO stock |

 

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ROKU stock | 10% gain | Dec 4 2024 | TTD and ROKU

 Investing.com -- Roku (ROKU) shares gained momentum in premarket trading on Wednesday following an optimistic note from Needham & Company, which reiterated its Buy rating and $100 price target.

The stock is up around 4.6% ahead of the opening bell.

"We expect Roku (NASDAQ:ROKU) to be purchased for a large premium within the next 12 months," said the Needham analysts. They believe it will be driven by Roku's unique assets and positioning in the connected TV (CTV) ecosystem.

The note highlighted Walmart (NYSE:WMT)'s $2.3 billion acquisition of Vizio as a catalyst for intensified competition in the CTV space. Walmart aims to challenge Amazon (NASDAQ:AMZN)'s Retail Media Network (RMN) by linking Vizio's CTV ads to its sales, a move Needham expects other players to emulate.

In this landscape, Roku stands out as the "only scaled CTV platform that can be purchased," positioning it as a prime acquisition target.

Needham identified six key reasons why Roku could attract buyers, including its installed base of 85 million households, vastly outpacing competitors like Vizio, which has 19 million.

They note that Roku also boasts valuable, privacy-compliant data from an average of 4.3 hours of daily viewing per home, making it attractive to streamers, retailers, and AI-driven firms like Amazon, Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOGL).

Roku's pricing power is said to further bolster its appeal. Through the Roku Channel, the company aggregates content, sells ads, and keeps 50% of the revenue.

Additionally, the company's foray into branded TVs has gained traction, aided by a decline in shelf space for Vizio following Walmart's acquisition.

"Roku alone can be bought," the note emphasized, highlighting the unique opportunity for potential acquirers to negotiate directly with Roku founder Anthony Wood, who controls the company's super-voting shares.

Needham predicts 2025 as a pivotal year for such a transaction, particularly with a Republican-led regulatory environment likely to be more favorable to acquisitions.