Magnificent Seven Insights: Strategies and Products🔍
What happened to the Magnificent Seven in 9/7 - 9/13
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We dive into the latest updates from the "Magnificent Seven" of tech. From breakthroughs to challenges, discover what's shaping the tech world this week.
This edition covers
Tesla's excellence in China with strategic advancements
Meta's rating 'buy' for strong AI leadership
Amazon's dominance in retail ads
Nvidia's struggle with chip demand, shortages
Alphabet's antitrust scrutiny
Microsoft's cybersecurity build, and job cuts
Apple's new iPhone and watch having mixed reactions
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The Analyst Recommendation & Stock Price
How it changed during last week:
Uplifting Information!
🏭Tesla Boosts Production and Market Share in China
According to a report posted by CPCA (China Passenger Car Association) on September 11th, Tesla is performing exceptionally well in China, a crucial market for its growth. The company's Shanghai factory has ramped up production, significantly boosting its local output and enhancing revenue streams. Tesla's market share in China remains robust, supported by rising sales and strategic price adjustments.
Source: Bloomberg Intelligence
Market Share is the percentage of total sales in an industry generated by a specific company. It indicates the company's competitiveness and market dominance compared to its rivals.
🏆 Analysts Rate Meta a 'Buy'as AI Innovations Boost Stock Potential
On September 10th, Meta has been recommended for a "buy" rating by DA Davidson due to its strong leadership in AI. Analyst Gil Luria highlights that Meta’s decision to open-source certain elements of its AI computing enhances its position as a key player in foundational model computing. DA Davidson has also raised the price target to $600.
Additionally, on September 11th, Meta’s stock recently fell below its lower Bollinger Band, suggesting it may be oversold and poised for a potential rebound. Meta rapidly recovered from the drop and rose above the higher Bollinger Band on September 12th.
Following is the Bollinger Band of META, provided by Bloomberg.
Source: Bloomberg News Story, Bloomberg First Word
Foundational model compute refers to the computational power and resources required to develop and run large-scale, general-purpose AI models.
Bollinger Band is a tool used to measure market volatility and identify overbought or oversold conditions. It consists of three lines: a middle simple moving average (SMA) and two outer bands set at a two standard deviation above and below the SMA. When prices move close to or beyond the outer bands, it may indicate that the market is overbought or oversold, potentially signaling a reversal.
Simple Moving Average (SMA) calculates the average price of a security over a specific number of periods, smoothing out price data to identify trends. For example, a 10-day SMA sums the closing prices of the last 10 days and divides by 10.
💰Amazon Leads Retail Media Ad Market with $60 Billion Revenue
According to a Bloomberg Intelligence on September 11th, Amazon continues to dominate the retail media ad space, securing a significant market share of 35% and is expected to generate an impressive $60 billion in retail ad revenue by 2025. The company's focus on retail media has proven lucrative, particularly as it leverages extensive first-party data and advanced targeting capabilities to attract advertisers. With retail media projected to generate $50 billion in 2024, Amazon's strategic investments and partnerships, such as its recent AWS expansion in the UK, further solidify its leadership in the global market.
Source: Bloomberg Intelligence, Bloomberg News Story, Bloomberg TV & Video
First-Party Data is information collected directly by a company from its customers through interactions like purchases and website visits. It is accurate and consented, used to personalize marketing and improve customer experiences.
Potentially Unwelcome News
📦Nvidia Faces Challenges Amid High Demand and Supply Shortages
Nvidia is facing challenges as the demand for its chips has been incredibly high, but there are shortages in supply. This has made some customers quite frustrated.
On September 11th, The company’s CEO explained that they’re trying their best to manage the situation.
Nvidia’s latest chip, called Blackwell, experienced delays, causing concerns among investors and contributing to a significant drop in Nvidia's stock price.
Source: Bloomberg Intelligence, Bloomberg News Story
🌐Alphabet Faces Antitrust Scrutiny
Alphabet continues to grapple with significant antitrust challenges from regulatory bodies globally. On September 10th, Alphabet lost a court fight with EU. The Justice Department has accused Google, an Alphabet subsidiary, of monopolistic practices in the digital ad market, triggering intense scrutiny. The case started on September 9th and is still going on.
Source: Bloomberg Opinion, Bloomberg News Story
Information to Check
💻Microsoft Confronts Market with Strategic Shifts
Microsoft is navigating significant strategic shifts amidst market challenges. The company is building a new platform capability for cybersecurity firms following a global IT meltdown triggered by a flawed update from CrowdStrike. Additionally, according to a Bloomberg News Story on September 12th, Microsoft announced a major layoff affecting 650 jobs in its Xbox unit, part of its integration efforts following the $69 billion acquisition of Activision Blizzard.
Source: Bloomberg News Story
CrowdStrike released a faulty update to its Falcon Sensor security software on July 19, 2024, causing around 8.5 million Microsoft Windows systems to crash and making it the largest outage in IT history.
⌚Apple Watch Series 10 Shines Amid Lukewarm iPhone 16 Reception
On September 9th, Apple revealed its iPhone 16 and a significantly updated Apple Watch Series 10. The iPhone 16 received mixed reviews, as its modest upgrades, like a slightly faster processor and minor camera improvements, did not meet high expectations for innovation.
In contrast, the Apple Watch Series 10 has excited consumers with its substantial enhancements, including a 30% larger screen and advanced health features such as sleep apnea and water-depth tracking. This highlights Apple's strategy to boost growth in wearables, despite the lukewarm reception of the new iPhone.
Source: Bloomberg Intelligence, Bloomberg News Story
That’s all for today!
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