- Wall Street in a mixed mood at the start of the week
- Bankers' comments in focus
- Wix.com raises full-year forecasts
Wall Street is starting the new trading week in a mixed mood. Most indexes are losing ground in the first minutes of trading, which may be dictated by Barr's comments from the Fed. The banker communicated that Q1 inflation disappointed and did not provide confidence in monetary easing. In the second part of the day, investors' attention will continue to focus on speeches by Fed bankers. These will include speeches by Mester and Jefferson, among others.
Current quotes of selected US companies. Source: xStation
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Trading chart of the US2000 index, W1 interval. The benchmark is losing slightly at the beginning of this week's first US cash session, and is thus trading in the key zone of 2100 points. The reaction to this psychological point and its final outcome may determine whether the demand side manages to extend the uptrend or a supply reaction begins to be formed. If the uptrend continues, the key level to watch may be the zone of local peaks near 2150 points. On the other hand, a downward movement could lead to a retest of the 2050 points zone, the 50% Fibo elimination of the downward wave initiated in November 2021, Source: xStation
News
Nearly 8% gains at the start of today's cash session were recorded by the shares of Wix.com (WIX.US). The company reported better-than-expected results for the first quarter of 2024 and raised its full-year guidance. This is mainly behind new product initiatives, including AI tools and the Studio division. Analysts are also positive about the implemented cost discipline.
FULL-YEAR OUTLOOK
- Revenue of $1.74-1.76 billion, the company's previous expectations of $1.73-1.76 billion, analysts estimated $1.75 billion
SECOND QUARTER FORECAST
- Revenue of $431 million to $435 million, analysts estimated $435.3 million
FIRST QUARTER RESULTS
- Revenue $419.8 million, +12% y/y, analysts estimated $417.8 million
- Adjusted EPS $1.38 vs. $0.91 y/y
KEY COMMENTS:
- Raised FCF margin forecast for 2024 to ~26% - well ahead of three-year plan, as FCF margin target of 25%+ was previously projected for 2025.
- Raised 2024 bookings forecast, with second-half bookings growth expected to accelerate to 16% y/y vs. 15% previously expected.
JP Morgan (JPM.US) is raising its forecast for net interest income this year to $91 billion vs. the previous $90 billion. The new guidance is dictated by expectations that the Federal Reserve will cut interest rates at a slower pace than the bank previously anticipated.
Barcalys is raising its target price for Nvidia (NVDA.US) shares to $1,100 from $850. The bank expects data center revenue growth to be higher than current estimates suggest. It is expected to reach nearly $23 billion (market consensus is $21.1 billion).
Analyst action
JPMorgan is raising its target price for Dell Technologies (DELL.US) shares to $155 versus the $125 recommended earlier. JPMorgan cites the company's strong commitment to the AI sector as the main reason for the increased target price.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
