Day: October 28, 2024

Microsoft earnings are this week. Here’s what Wall Street expects

Microsoft is set to report earnings for its fiscal first quarter on Wednesday, after disappointing artificial intelligence sales in the last quarter. The tech giant is expected to report revenues of $64.57 billion for the first quarter of fiscal year 2025, according to analyst estimates compiled by FactSet . Microsoft’s Productivity and Business Processes unit is expected to report revenue of $23.6 billion, its Intelligent Cloud unit is expected to report $26.8 billion, and its Personal Computing unit is expected to report $14.1 billion in revenue for the quarter, according to estimates. The company is expected to report earnings per share, or EPS, of $3.11 for the first quarter, according to FactSet. Microsoft’s revenue expectations are below the $64.7 billion it reported for the fourth quarter of fiscal year 2024. Despite beating Wall Street’s expectations, its shares fell after its Intelligent Cloud unit sales of $28.7 billion came in below expectations. Microsoft’s capital expenditures of $13.9 billion were up 55% year over year, and $200 million over analyst expectations. Microsoft chief executive Satya Nadella received a $79.1 million payout during the last fiscal quarter — a 63% bump from the $48.5 million he received during the same quarter the previous year. However, Nadella took a pay cut to show “personal accountability” after multiple cybersecurity breaches hit the company this year, according to a letter to shareholders from the compensation committee. Shares of the company were up almost 1.3% during mid-day trading on Friday. Microsoft’s stock is up around 16% so far this year. In November, the company will make a public preview available for customers to build their own autonomous agents in Copilot Studio that can “understand the nature of your work and act on your behalf.” The company also announced 10 new autonomous agents for its enterprise platform, Dynamics 365. The new agents are designed for workers in “sales, service, finance, and supply chain,” but the company plans to develop more agents, it said. The 10 autonomous agents will become available for public preview later this year and into early 2025. https://preview.redd.it/b2wqflmo6hxd1.png?width=800&format=png&auto=webp&s=026f1a59bc83536e2827a45cd76928fd99de0613 submitted by /u/Lor1al [link] [comments]

Intel (INTC) stock has been sliding under CEO Pat Gelsinger, erasing the performance-based equity awards he was granted when he became the chip maker’s top executive. If shares don’t assume an Nvidia-like trajectory soon, he stands to see more than $100 million in paper value wiped out.

Since Gelsinger became Intel CEO on Feb. 15, 2021, shares have dropped 63% to $22.68 at Friday’s close from $61.81. Shares of the chip maker have lost more than half their value for the year to date alone, and set a multiyear low of $18.51 on Sept. 10. Intel stock last traded below $19 in October 2010. If Intel stock doesn’t trade at $148.95 for 90 calendar days by Feb. 15, 2026—about 16 months from now, the fifth anniversary of Gelsinger’s hiring—outperformance PSUs with an accounting value of $45.7 million at the grant date will be canceled. If shares don’t trade at $74.47 for those same time parameters, performance stock options valued at $29.1 million are gone. If shares don’t reach $64.54, $34.2 million of strategic growth PSUs will wither and die. Hitting $64.54, $74.47, and $148.95 would require Intel stock to rocket 185%, 228%, and 557%, respectively, from Friday’s close. Looks unreachable. And it’s unlikely that the wave of planned layoffs and the cancellation of free coffee and tea for employees at Intel Israel, as reported on Sunday, October 27, will contribute to such growth. https://preview.redd.it/cvgykh8jmgxd1.png?width=316&format=png&auto=webp&s=e1dc989390b3f5bff47f1f350db1d0026e63fba5 submitted by /u/FXgram_ [link] [comments]

❗️Collecting some knowledge on trading, economics, and finance. Use a “Trading Academy” vibe. Say something if you’ve got something to say. Just follow the rules and keep it on topic.

The Ugly Truth About Trading Demo Trading – more harm than good? Free Cheese What games can teach financial literacy? Mortgage _ part 2 | Trading Academy Trading Academy | Stock Option_ part 2 Volatility | Trading Academy Futures | Trading Academy Trading Academy | Shakeout Trading Academy | Allocation Trading Academy | Liquidity Trading Academy | Fair Price Trading Academy | Market Price Trading Academy | Forward and Reverse Stock Split Trading Academy | What harm does insider trading cause to the economy? Trading Academy | EBITDA – Dirty Profit Trading Academy | The Political Scent – Dividends, Stock Market Trading Academy | Monetarism Trading Academy | Delisting Credit default swaps (CDS) Don’t hesitate to speak up if you’ve got something to say. Just follow the rules and keep it on topic. And don’t forget about our wiki submitted by /u/XGramatik [link] [comments]

📈📉🤓I often use the vozd after capturing liquidity through manipulation! The market is cyclical and it is not fashionable to always go in one direction! 👇

I often use the vozd after capturing liquidity through manipulation! The market is cyclical and it is not fashionable to always go in one direction! think about it, when you understand that the market needs fuel to move, you will understand that it collects liquidity, makes manipulations and goes in another direction to do the same! 📈📊📉🧐 #forex #crypto #EUR #XAU #GBP submitted by /u/Yuriy_UK [link] [comments]

📈📊📉🤓Does anyone trade using the smart money concept?

Does anyone trade using the smart money concept? I noticed that figures or patterns or even technical analysis can be worked out, it’s just that everyone has their own vision! but as for me, everything in totality has a place to be! (I’m not calling anyone to take action! This is purely my individual opinion!) #forex / #crypto submitted by /u/Yuriy_UK [link] [comments]

Tokenized treasuries are red-hot, but face struggles to dethrone stablecoins

Creating digital versions, or tokenizing real world assets on blockchains has been at the cutting edge of demonstrating crypto’s use case. And now tokenised treasuries are enjoying their moment in the spotlight as an alternative yield to stablecoins, but these emerging digital assets face significant hurdles toward wider adoption needed to dethrone stablecoins. Tokenized treasuries — the digital versions of Treasury bonds created on a blockchain such as Ethereum — have racked up a market cap of nearly $2.5 billion, up from around $800M since the turn of the year, according to data from tracker RWA.xyz. Tokenized treasuries: Riding the need for yield “This universe of tokenized treasuries has been growing fast over the past year approaching $2.4bn. And, although much smaller than the $180bn universe of traditional stablecoins, their fast growth has the potential to challenge stablecoin’s dominance in the future,” analysts at JPMorgan said in a recent note. The need for yield-bearing alternatives to major stablecoins such as Tether and USDC/USD, which typically don’t offer interest or share reserve yields, has been driving demand for tokenized treasuries. It makes good regulatory sense for stablecoins to avoid offering interest to its users as doing so would attract further regulatory restrictions, requiring compliance with securities law, JPMorgan said, “thus hindering their current seamless and permissionless use as source of collateral in the crypto ecosystem.” Stablecoin users, however, aren’t sitting idle willing to stomach the opportunity cost of holding yield-bearing assets. They have been employing various strategies to earn yield on their stablecoins. But these strategies such as secured lending, unsecured lending, basis trade “involve risk and ceding control and custody of their balances,” the analysts said. With U.S. Treasury yields still at multi-year highs, and now expected to remain higher for longer as U.S. economic exceptionalism continues, tokenized government debt appears to be scratching the ‘need for yield’ itch and could potentially continue to pry away dollars from stablecoins. Tokenized treasuries: New kids on crypto derivatives market block Tokenized treasuries offer several advantages over traditional stablecoins. They provide yield to users without the need for risky trading or lending strategies, not require users to cede control or custody of their assets. The market for tokenized treasuries has also been spurred by institutional investors launching tokenized funds, allowing investors access to on-chain offerings with 24/7 liquidity. Blackrock launched its first tokenized fund, BUIDL, earlier this year on the Ethereum blockchain, allowing investors to redeem their shares or BUIDL tokens for USDC stablecoin through a smart contract at any time, without the need for an intermediary. Some tokenized funds including Blackrock’s BUIDL, which has amassed a market cap of nearly $0.6 million since its launch in April, are also looking to steal stablecoins’ lunch in a key market: the crypto derivatives market. Stablecoins tend to be used as collateral in crypto derivatives trades, with Tether Holdings’s stablecoin USDT and Circle Internet Financial’s USDC among the most widely used tokens for derivatives collateral on exchanges, with market caps of $120B and $34B, respectively. But these strategies such as secured lending, unsecured lending, basis trade “involve risk and ceding control and custody of their balances,” the analysts said. With U.S. Treasury yields still at multi-year highs, and now expected to remain higher for longer as U.S. economic exceptionalism continues, tokenized government debt appears to be scratching the ‘need for yield’ itch and could potentially continue to pry away dollars from stablecoins. Tokenized treasuries: New kids on crypto derivatives market block Tokenized treasuries offer several advantages over traditional stablecoins. They provide yield to users without the need for risky trading or lending strategies, not require users to cede control or custody of their assets. The market for tokenized treasuries has also been spurred by institutional investors launching tokenized funds, allowing investors access to on-chain offerings with 24/7 liquidity. Blackrock launched its first tokenized fund, BUIDL, earlier this year on the Ethereum blockchain, allowing investors to redeem their shares or BUIDL tokens for USDC stablecoin through a smart contract at any time, without the need for an intermediary. Some tokenized funds including Blackrock’s BUIDL, which has amassed a market cap of nearly $0.6 million since its launch in April, are also looking to steal stablecoins’ lunch in a key market: the crypto derivatives market. Stablecoins tend to be used as collateral in crypto derivatives trades, with Tether Holdings’s stablecoin USDT and Circle Internet Financial’s USDC among the most widely used tokens for derivatives collateral on exchanges, with market caps of $120B and $34B, respectively. Regulatory hurdle to keep lid on tokenized treasuries adoption But this very advantage, the offering of yield, that tokenized treasuries are able to dangle in front of investors poses a major headwind in their quest to steal sizable portion stablecoins’ lunch. “Tokenized treasuries fall under securities law which restrict offerings to accredited investors, thus inhibiting broader market adoption,” the analysts said. BlackRock’s BUIDL, for example, has high entry barriers with a minimum investment of $5 million and restriction on offering these products to accredited investors. Blackrock’s big push to persuade cryptocurrency exchanges to more widely use its digital token shows there is potential to partly replace traditional stablecoins as collateral in crypto derivative trading, but the liquidity or the lack thereof (relative to that of stablecoins), suggest these new kids on the crypto derivatives market block aren’t likely to dominate any time soon. This regulatory hurdle suggests that stablecoins — boasting a market cap nearing $180B across multiple blockchains and centralized exchanges, ensuring traders receive low transaction costs even for large transactions — aren’t at risk of losing the significant advantage they hold over tokenized treasuries in terms of liquidity, JPMorgan said. This deep liquidity, which is key to seamless trading, implies that tokenized treasuries, with a market cap of around $2.4B, would “eventually replace only a fraction of the stablecoin universe,” JPMorgan said. While the bar to knock stablecoins off their perch is likely to remain high, tokenized Treasuries are expected to continue to grow by potentially replacing “non-yield-bearing stablecoins… Continue reading Tokenized treasuries are red-hot, but face struggles to dethrone stablecoins

Philips cuts outlook as China demand slumps, Q3 revenue misses estimates

Philips reported third-quarter results that posted a revenue miss and a revised outlook, primarily due to weaker demand in China. Revenues missed consensus by 3%, and order intake fell by 2% after a strong prior quarter. While adjusted EBITA was in line with expectations, analysts at UBS said that this figure was boosted by unusually high royalty income. Without this benefit, the adjusted EBITA would have missed by 8%. The overall revenue shortfall has raised concerns about Philips’ growth, with management revising its full-year revenue growth forecast downward from an anticipated 3%-5% to a range of 0.5-1.5%. This revision reflects heightened uncertainties, particularly in China, where demand challenges have deepened. UBS analysts flagged underperformance across several Philips segments. Diagnosis & Treatment sales were 3% below consensus, showing only a 1% organic fall, which fell short of the expected 2% growth. Connected Care sales and Personal Health both trailed expectations, missing forecasts by 3% and 7%, respectively, and each recorded no organic growth or declines compared to anticipated increases. UBS noted that even with a favorable income boost from royalties, underlying profitability remains under strain. Management’s guidance cut and the broader revenue miss have weighed on investor sentiment, with UBS analysts suggesting this could lead to further scrutiny, especially given the company’s disappointing order intake following an already soft comparison period last year. “We believe there had been some hopes for a margin guidance raise, but instead we’re likely to get 2-3% cuts to sales and adj EBITA. We see the shares off MSD, maybe a little more,” said analysts at J.P. Morgan in a note. https://preview.redd.it/6uv9rngjlgxd1.png?width=728&format=png&auto=webp&s=0680e5256a622efb74fe217d87bc1d1bdba8e4a8 submitted by /u/Lor1al [link] [comments]

US net interest payments as a share of GDP are expected to reach a record 4.6% next year. That would more than DOUBLE World War 2 levels and exceed the all-time highs seen in the 1990s.

This is also much higher than net interest as a % of GDP in all 38 OECD countries. Countries with relatively high interest such as Greece, Ireland, Spain, and Portugal are expected to reach interest-to-GDP ratios that are HALF the size of the US. To make things worse, these forecasts assume lower interest rates over the next year. submitted by /u/XGramatik [link] [comments]

📊 Brent / WTI Oil prices: stability at $75 per barrel The US oil inventory report did not provide a clear signal, reflecting the current state of the market.

📊 Oil prices: stability at $75 per barrel The US oil inventory report did not provide a clear signal, reflecting the current state of the market. According to Commerzbank commodities analyst Barbara Lambrecht, the price of Brent crude oil has stabilized at around US$75 per barrel. For now, this level remains stable, but further changes in the market should be monitored. submitted by /u/Yuriy_UK [link] [comments]

Volkswagen weighs wage cuts, bonus reductions in push to save 4 billion euros – Handelsblatt

Volkswagen is exploring a series of cost-cutting measures for its core brand, including a 10% wage cut and a two-year wage freeze, as it seeks to save 4 billion euros, Handelsblatt newspaper reported on Sunday, citing company insiders. The carmaker is under increasing pressure to reduce expenses amid a challenging economic climate. Workers, meanwhile, have criticized management for not presenting a clear future strategy, despite promises of a new plan in the works. According to Handelsblatt, Volkswagen’s leadership has discussed several potential cost-saving moves. These include capping bonuses for top-tier employees, reducing additional payments for employee anniversaries, and exploring possible closures of some German production sites. A Volkswagen spokesperson declined to comment to Handelsblatt on the ongoing negotiations with the company’s works council and IG Metall, Germany’s powerful metalworkers’ union. Since early October, Volkswagen’s management has been meeting weekly with worker representatives from its German plants, analysing where cost cuts can be made and which models will be produced at each location. Negotiations over wage increases are handled separately, according to a union spokesperson, with the next formal round set for Oct. 30. https://preview.redd.it/3s9vb3sh8dxd1.png?width=800&format=png&auto=webp&s=9e8f35424225c8f03625c86d20eac4395b372e99 submitted by /u/Lor1al [link] [comments]

Here is a list of top books recommended by Seth Klarman, reflecting his value investing philosophy and deep understanding of financial markets:

The Intelligent Investor by Benjamin Graham: A foundational text on value investing, focusing on concepts like intrinsic value, margin of safety, and managing market volatility. https://preview.redd.it/rkb7so069dxd1.png?width=512&format=png&auto=webp&s=2a24b2ba3b3ee1201476af603dd1252b4ca011b4 Security Analysis by Benjamin Graham and David Dodd: A comprehensive guide to value investing and financial analysis, introducing key ideas such as buying assets below their intrinsic value. https://preview.redd.it/2n1ey7n79dxd1.png?width=651&format=png&auto=webp&s=8f4c1ae25584d7e3d50f197bda0bd6e441813737 You Can Be A Stock Market Genius by Joel Greenblatt: This book explores overlooked investment strategies, like spin-offs and arbitrage, that can help individual investors find undervalued stocks. https://preview.redd.it/zmpkmgs99dxd1.png?width=657&format=png&auto=webp&s=2446b6730905026b094c801c176c0c4ea14cef73 The Money Culture by Michael Lewis: A series of essays on the high-stakes, extravagant culture of Wall Street, offering insightful commentary on financial excesses. https://preview.redd.it/lfb6294c9dxd1.png?width=664&format=png&auto=webp&s=4d3ed4b92ebf451a93a5599a390c617888ee4ba1 The Aggressive Conservative Investor by Martin Whitman: This work dives into fundamental analysis, with a focus on achieving strong returns through conservative investment strategies. https://preview.redd.it/svv26bee9dxd1.png?width=300&format=png&auto=webp&s=b1d891044878fb42fe053c6b038cd10dd3f62800 Moneyball: The Art of Winning an Unfair Game by Michael Lewis: Though sports-focused, it draws parallels to investing by showing how statistical analysis can uncover hidden value. https://preview.redd.it/qz3b15cg9dxd1.png?width=822&format=png&auto=webp&s=0ff7cf2304b970bc24f5247d761e78a475507957 When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein: A captivating story about the collapse of a prominent hedge fund, offering lessons on risk management. https://preview.redd.it/8lch1v6i9dxd1.png?width=781&format=png&auto=webp&s=072ebcb2efcf398a65db9324d4aa6e9031973f62 Too Big to Fail by Andrew Ross Sorkin: A detailed account of the 2008 financial crisis, providing insights into the interconnected nature of financial institutions. https://preview.redd.it/c6kj93zj9dxd1.png?width=325&format=png&auto=webp&s=19d275289de345ecc59cfd87a52efc7183cfb631 submitted by /u/Lor1al [link] [comments]