- 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
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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.
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