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Jim Cramer’s top 10 things to watch in the stock market Thursday

Signage for the “Disneyland City Hall”, in Disneyland Paris, in Marne-la-Vallee, east of Paris, on October 16, 2023.

Ian Langsdon | Afp | Getty Images

My top 10 things to watch Thursday, Nov. 9

1. Club holding Disney (DIS) reported better-than-expected earnings, highlighted by a beat on Disney+ with the addition of 7 million subscribers to its core base. Better cash flow, $7.5 billion in savings, a dividend coming and maybe even a stock buyback and strategic partners, maybe even the hyperscalers (Amazon Web Services, Microsoft Azure, Google Cloud). Remember how much we like Thursday Night Football on Amazon (AMZN). Does Alphabet (GOOGL) know sports? Evercore ISI says FY2024 free cash flow guidance “meaningfully ahead of expectations.” Wells Fargo lifts price target to $115 from $110. And I think it can go there … Shares up 4.4% in the premarket.

2. Affirm (AFRM) price target raised to $20 from $17 at Wells Fargo after the buy now, pay later (BNPL) fintech reported solid quarterly results that beat expectations. The company’s algo is better and all loans are short term. It works with Shopify (SHOP) and Amazon. CEO Max Levchin’s skill is at work here. Shares of the company up 14% in the premaket.

3. Sure the guidance was weak at Arm Holdings (ARM), and I don’t like to hear the term supercycle. But the semiconductor chip designer — which is owned by SoftBank and went public in August — is in the early rounds of its partnership with Nvidia (NVDA) and people don’t realize how much business there is to be done here for the PC market and artificial intelligence.

4. Microsoft (MSFT) is renting Oracle’s (ORCL) cloud to support the growth of its AI services because of shortage of high-end Nvidia (NVDA) chips. That means the Nvidia chips that were headed for China are gaining at a premium here. Did they get lucky. China gets three new H100 chips, MSFT needs more compute power than it has. I would buy ORCL off this. Oracle is helping in inference (ARM is the learning portion).

5. Twilio (TWLO) price target raised to $60 from $55 at both Mizuho and Wells Fargo. Bernstein to $73 from $68. All three have hold ratings on shares. Some growth again helped by AI for the marketing side. Q3 results better than feared.

6. Instacart (CART) mostly inline in first post-IPO quarter with advertising better. This one is challenged because grocery shopping is no big deal. A few price target hikes.

7. Take-Two (TTWO) is ready with new version of Grand Theft Auto coming in December. It’s one of the greatest entertainment franchises ever. Meanwhile, Zynga doing well in the mobile market. Wells Fargo raises price target to $170 from $160. Baird to $160 from $155.

8. CRM company HubSpot (HUBS) reported a great number but many price target cuts because they were so high  Canaccord, Mizuho, Opco, WFC

9. Both Wells Fargo and Barclays make a case for owning MGM Resorts (MGM) but I would rather own Wynn Resorts (WYNN).

10. Barclays upgrades Kellanova (K) to hold from sell — should be a little less premium than Mondelez (MDLZ), which is still the premium snacking company. Still, Morgan Stanley lowers price target on K shares to $57 from $68.

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