Happy almost Friday!
We're nearly there. And we're nearly through with earnings season!
Anyway, I've got to focus on Apple (AAPL) so let's go over what you need to know after this market rally.
Nvidia is Back
TheStreet's contributor Bret Kenwell takes a look at the chip stock.
The action had investors' stomachs in their throat, knots galore. From top to bottom, we're talking about a ~40% haircut to Nvidia in less than a month. The action was shocking to many and really shows how overboard the market can get when it's throwing a tantrum.
The simple fact is that Nvidia isn't Advanced Micro Devices (AMD - Get Report) with its thin margins, nor is it Intel (INTC - Get Report) with its stagnant growth. While AMD and Intel each bring positives to the table, Nvidia has solid growth and impressive margins. The company's GPUs are top-line products being used as key components in secular growth industries like gaming and datacenter as well as high-growth industries like artificial intelligence.
Attending Nvidia's GTC conference in Washington, the district's largest artificial intelligence conference of the year, was a stark reminder of that leadership.
Nvidia's GPU components hammer the performance of its competition, particularly those utilizing CPUs. It has made data-hungry, power-hungry tasks a breeze and in some cases allows for fantasy to become reality. Despite the naysayers, A.I. is poised to play a prominent role in many industries, ranging from transportation to agriculture to healthcare.
Check out his full article here.
Ready for Alibaba Earnings? Jim Cramer Is
Cramer has some thoughts about the Alibaba (BABA) earnings. Alibaba will be reporting before the bell on Friday, Nov. 2. FactSet estimates that Alibaba will be reporting earnings per share of $1.07.
TheStreet's Annie Gaus is covering what investors should be looking at when it comes to Alibaba.
"Since hitting a record high on June 5, the Chinese Internet giant has lost more than 35% of its value. Among the factors that have weighed on Alibaba's stock are the Internet giant's spending, macroeconomic events such as tariffs and a weakened renminbi, and a general pullback from other Chinese behemoths like Tencent," wrote Gaus.
Here's what she thinks investors should keep an eye on when the company reports.
- Cloud updates and core commerce
- Merger and acquisition plans
- Commentary on the Chinese economy
For more insight, you can check out Gaus's article here.
Should Investors Be Wary of a Poisoned AAPL?
Real Money contributor Stephen Guilfoyle gives his 2 cents on the Apple earnings.
"There comes for almost everyone, a moment. That moment where you know that nothing will again be the same. For some that moment is the day they set off for college. For others, that moment might be the first day after taking a new job, or a big promotion. For me, that moment included some orderly yellow footprints painted on the pavement on an island off of South Carolina, and an angry fellow who seemed to be in charge."
"Markets face such a moment tonight. Yes, I know. October was ugly. Tuesday, and Wednesday ... not so much, though there ware large sell programs thrust upon the marketplace late on Wednesday that took the luster off the the day's performance. All of that might not count all that much in a few hours. The moment I speak of that will change earnings season, and perhaps broad market performance going forward would be the release of Apple (AAPL - Get Report) fourth quarter earnings results. Helmets and flak jackets, gang."
"Jeffrey Marks, Senior Portfolio Analyst, Action Alerts PLUS, said that "Unlike its FAANG peers, Apple's shares were certainly resilient to October's selloff. This could be a signal that the market has embraced the thesis that it should be valued like a consumer-packaged good stock (hardware) with a fast-growing software business (Services), a viewpoint that could lead to higher valuations in its future if it can exceed expectations tonight."
Still curious? Find his article here.
And that's a wrap for tonight.