Podcast Summary
Apple introduces new iPad models with performance upgrades and new features: Apple unveiled faster iPad Air and advanced iPad Pro with improved machine learning and ray tracing capabilities, but iPad sales have declined and broader market growth is slowing, with earnings growth expected to moderate.
Apple unveiled new and improved iPad models, including the iPad Air and iPad Pro, boasting significant performance upgrades and new features. The iPad Air is nearly 50% faster and offers better machine learning capabilities, while the iPad Pro features a new display with Tandem OLED, nano texture glass, and the latest M4 chip with a powerful CPU and GPU, enabling ray tracing for the first time on an iPad. However, the iPad business has seen recent weakness, with revenue falling 17% year over year. Meanwhile, the broader market is experiencing a lack of real macro drivers, with the major averages little changed and Treasury yields lower on the long end. Earnings season is winding down, but JPMorgan strategist Marko Kolanovic cautions that forecasts for the S&P 500's earnings per share to rise 17% by Q4 may be overly optimistic, as both revenue and earnings growth are expected to converge towards a mid-single digit pace. Among active stocks, Disney saw a decline following a slight revenue miss, despite profitability in streaming for the quarter.
Companies and industries seeing growth and positive developments: Disney's streaming business projected profitable in Q4, NVIDIA earnings raised, Palantir a buying opportunity, Peloton Interactive buyout rumors, copper prices rising, Druckenmiller sees long-term potential in AI
Several companies and industries are experiencing significant growth and positive developments. Disney is projected to generate substantial cash flow and earnings growth this fiscal year, with its streaming business expected to be profitable in Q4. NVIDIA's earnings estimates have been raised on the back of robust AI server demand and better supply. Palantir Technology, despite a recent dip in share price, is seen as a golden buying opportunity due to its strong performance in artificial intelligence. Peloton Interactive is reportedly a target for private equity buyouts, and copper prices are expected to continue rising due to growing demand. Notably, famed investor Stanley Druckenmiller cautions that AI may take several years to fully realize its potential, but it remains underhyped in the long term. Overall, these developments suggest a strong market for technology, media, and commodities.
Goldman Sachs predicts metal deficits and potential inventory shortages, while BlackRock encourages investors to stay in the equity market: Experts predict metal deficits and potential inventory shortages from 2024, but BlackRock urges investors to stay in the equity market due to the Fed's interest rate commitment, a potentially less tight labor market, and a robust buyback boom. Investors should always conduct their own research and consider risk tolerance before making decisions.
Goldman Sachs is predicting metal deficits and potential inventory shortages starting from 2024. Meanwhile, BlackRock is encouraging investors to stay in the equity market, citing the Federal Reserve's commitment to higher interest rates, a potentially less tight labor market, and a robust buyback boom. These factors suggest that the equity market may continue to perform well, despite recent concerns. It's important to note that these are expert opinions and not guarantees, and investors should always conduct their own research and consider their individual risk tolerance before making investment decisions. Stay tuned for more insights from Wall Street, and be sure to check out the show notes for links to related stories. Don't forget, Seeking Alpha offers premium subscriptions for those looking to stay ahead of the curve and unearth great investing ideas.