On February 24, financial markets brace for a relatively stable opening, following a significant selloff the previous day. The S&P 500 index is projected to remain flat as investor sentiment remains cautious. In the cryptocurrency sector, bitcoin’s price has dipped below $63,000 amidst rising tariff tensions that are causing unease among investors. The evening’s attention will shift to President Donald Trump’s upcoming State of the Union address, where the economy and trade policies are expected to be key focal points.
Following the controversial Citrini paper that has shaken the enterprise software sector, discussions continue to revolve around the implications for overvalued companies. For instance, ServiceNow is highlighted for its aggressive buyback policies and notable insider buying activity. Other companies such as Adobe and Salesforce are also under scrutiny, as concerns linger over their valuation in light of recent market analyses.
In corporate news, Meta Platforms has made headlines with a multi-year agreement with Advanced Micro Devices (AMD), committing to deploy up to 6 gigawatts of AMD’s graphics processing units in its data centers. This decision comes shortly after Meta’s announcement to utilize millions of Nvidia GPUs, signaling a strategic pivot to strengthen its infrastructure capabilities.
Home Depot shares saw a positive uptick of over 2% following the retailer’s first quarterly earnings beat in four quarters. Contrary to expectations of potential cuts, the results have been received positively, particularly with hopes that interest rates may start to decline under Trump’s Federal Reserve chair appointee.
In another notable stock move, JPMorgan has upgraded Domino’s Pizza from a hold to a buy, adjusting the price target downward to $450 from $460. Analysts lauded the company’s stable franchise model, attributing its robust performance to CEO Russell Weiner’s effective integration of various delivery channels.
Conversely, TD Cowen has lowered its price target for cybersecurity firm CrowdStrike to $480, down from $580, reflecting recent setbacks due to concerns over artificial intelligence disruptions. The stock remains steady, with expectations that it will meet its upcoming earnings estimates.
Deutsche Bank has taken a critical stance on Blue Owl Capital, downgrading its rating to hold from buy and slashing its price target to $10 from $15. Analysts have expressed skepticism regarding the alternative asset manager’s future performance, particularly in light of its exposure to the enterprise software sector.
Goldman Sachs has raised its price target for Quanta Services significantly, from $495 to $685, while maintaining a buy rating. The company, involved in building and maintaining critical infrastructure, is expected to see earnings grow substantially over the next few years.
Wells Fargo has upgraded Qualcomm from sell to hold, with a new price target of $150, up from $135. Analysts cited the potential positive impact of Qualcomm’s data center strategy on investor sentiment, although a preference for Advanced Micro Devices remains.
Lastly, analysts from Citi have maintained a buy rating on MongoDB but reduced the price target from $525 to $435. The database software provider has faced a challenging year, with a reported 27% decline, leaving uncertainty regarding its valuation.
As the financial landscape shifts, investors continue to seek stable opportunities amidst the ongoing market volatility. For those closely following these developments, insights and trade alerts are available through the CNBC Investing Club, providing timely updates on stock movements.
