Below is a list of the top 10 most discussed US stocks on the WallStreetBets forum on Reddit over the last 24 hours according to data from Quiver Quantitative.
- Tesla
- NVIDIA
- C3.ai
- Microsoft
- Carvana
- Rocket Lab USA
- Netflix
- PayPal
- Visas
- Apple
Goldman Sachs up 1.3% today, trading at monthly high. The bank missed expectations in the second quarter after reporting a fall in earnings per share to $3.08 from $7.73 a year earlier, missing Wall Street’s median forecast of $3.94. Notably, estimates for earnings per share ranged from $2 to $6.91 ahead of the earnings release. Goldman Sachs beat expectations in all areas including trading, investment banking and advisory fees, although credit was weaker. However, the lack of deals continues to take its toll and trading earnings have been sharply down. A $504 million write-down on its Greensky stake also weighed on earnings.
Tesla up 0.4% to hit a 10-month high ahead of the after-hours earnings release. Tesla delivered a record number of vehicles in the second quarter as price cuts and other stimulus boosted demand. But the biggest question this week is what impact this is having on the company’s profitability. Margins are expected to bottom out in the second quarter. The outlook is rosy for now, as markets anticipate further increases in deliveries and a recovery in margins in the second half of the year, but Tesla needs to live up to those expectations if it wants to stay on track.
Netflix is down 0.4% after hitting a fresh 18-month high ahead of the results released after the close. Subscriber growth is back on track and investors will want to know how the new dual strategy to revive growth translates into a crackdown on password sharing and the new ad-supported layer. The fact that Netflix has two major new catalysts set to help its subscriber count climb to new all-time highs suggests there’s an opportunity for profit this quarter. On the other hand, a miss would suggest the new plan isn’t panning out as quickly as markets have been expecting this year. Second-quarter earnings are forecast for a fourth straight month, but markets are expecting the company to reap the rewards in the second half of the year and earnings per share to pick up, in part due to the lighter year-to-date comparatives 2022 is due. All of this has the potential to provide Netflix stock with continued momentum, but only if the company can keep up with market expectations. Markets have bought into Netflix’s new strategy, and now it’s time to start executing.
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IBM trading at a one-month high and also posting later. Figures Wall Street expects IBM’s second-quarter revenue to be flat at $15.5 billion last year. The areas of consulting and software are growing, but are being thwarted by the ongoing weakness in demand for infrastructure hardware. However, IBM is suffering from the general slowdown in demand for mainframes and is affected by companies withdrawing or postponing spending on large IT projects. Red Hat will continue to shine, but it’s not immune to the brakes hitting sales. Adjusted earnings per share are expected to fall more than 13% to $2.00 as costs continue to rise and earnings are flat. We should get more insight into the Apptio acquisition announced last month.
The shares of Microsoft are down 1.6% after posting their strongest daily gain in over three months yesterday, with the big tech giant hitting a new all-time high. The stock rose yesterday after the company announced how much it will charge corporate customers for its new artificial intelligence products, giving investors an idea of how lucrative they could be. The product line, called Microsoft 365 Copilot, will cost $30 per user per month. Barclays said this was higher than expected, calling it “an important next step for Microsoft’s AI monetization.” Bernstein agreed, saying it could set the gold standard for other companies. Despite the high price, analysts are bullish on demand due to potential productivity gains. A number of brokers raised their price target for Microsoft, which also finds support as it completes its acquisition of Activision Blizzard comes closer. Mizuho raised his view to $420, JPMorgan to $385, TD Cowen to $390 and BofA Global Research to $405.
The AppleStock up 0.5% today, climbing to a new all-time high. The iPhone maker will report earnings early next month, but investors will be watching its key supplier’s results tomorrow TSMC keep an eye on it, which is down 0.4% today. As for Apple’s results, TSMC revenue is forecast to decline while iPhone demand is expected to remain more resilient. For TSMC, investors will hope that the new demand for artificial intelligence can help offset the expected earnings decline and create a new catalyst for the future.
Carvana is over 32.9% increased and is at a level not seen since August 2022! The used-car dealership reported record adjusted earnings (Ebitda) for its fiscal third quarter as earnings per sale nearly doubled from the second quarter, giving hope the company is on its way to profitability. The company also agreed with bondholders to restructure its debt, canceling around 83% of its debt maturing in 2025 and 2027 while reducing interest payments over the next two years. This should reduce total debt by over $1.2 billion.
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