Subscribe to receive this FREE daily commentary directly in your email
[widget id=”text-22″]
Prepping For Micron and Oracle, Plus Microsoft and Broadcom
As the week draws to a close the stock market didn’t have a remarkable week, in fact, the S&P 500 was down by about 1 percent for the week. But stocks showed some strong trends on Friday which suggest next week is likely to see gains.
[widget id=”text-19″]
The S&P 500 continues, for now, to trend higher, putting in a series of higher highs, and higher lows, and as long as that trend continues then the index is likely heading back towards 2,880 over time. The index may rise towards 2,810 next week.
[widget id=”text-16″]
Micron
One would never know the market was down this week, looking at shares of Micron, the stock jumped by over 11 percent on the week, and is now resuming its uptrend as well, going into earnings next week.
The stock got another significant upgrade today this time from Baird, with the price target rising to $100 from $60, on stronger than expected trends in memory. The actual revenue and earnings estimate trends for the consensus have remained relatively flat, with revenue estimates rising by about 3 to 4 percent for 2018, 2019, and 2020, versus a stock that has climbed by 42 percent. Earnings estimates are trending higher since the start of 2018, up 7 percent for 2018, 5.5 percent for 2019, and 3.5 percent for 2020. But again the stock is up way more.
That would suggest that investors are expecting the earnings multiple to keep expanding, and it has, rising from below 5 to 6.85. How much more is the market willing to give it? We might find out next week.
[widget id=”text-23″]
Oracle
Oracle also reports next week, and I found it interesting that somebody opened a position in the April $57.5 calls. The trades weren’t huge, just over 13k contracts. But with the company reporting Monday after the close, it caught my eye.
[widget id=”wordads_sidebar_widget-41″]
Alphabet
Have you notice Alphabet trending lower, it got right to resistance, at $1,175, where the gap was created post-earnings, and it has been trading lower since.
Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
[youtube-feed feed=7][widget id=”wordads_sidebar_widget-41″]
Microsoft
Microsoft had some exciting news, about a new division within the company that would be cloud-based gaming. The article notes Microsoft is looking for gaming to grow to 2 billion users globally, and a new cloud-based subscription service could help Microsoft reach them. In a Netflix subscriber world, the opportunity could be enormous, with only the hurdle being pricing potentially, but it sounds very cool.
[widget id=”text-22″]
Broadcom
I was surprised to see Broadcom trade down today, but it looked more like fill the gap-type day while retesting the downward trendline breakout. I still think shares go higher.
That it is it!
[widget id=”text-19″]
[widget id=”text-16″]
[widget id=”wordads_sidebar_widget-41″]
[widget id=”text-22″]
Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets
Just $200 Per Year – Get Your Free 2 Week Trial
Recent Videos:
More Upgrades On Amazon And Micron
Micron Jumps, Nvidia’s Breakout
Market Surges Breakouts All Over
Roku Borrow Rate Surge, Biotech Fakeout?
Tech And Biotech Look Weak, Plus Subscriber Mailbag
Free Articles Written By Mike:
GE Options Traders Bet Stock Will Fall 15% Further
Nike’s Stock Seen Ready For a 10% Pullback
Microsoft Bulls May Be Too Bullish
Alibaba Stock May Surge By 11%
Why Broadcom May Rise As Much As 17%
Twitter’s Soaring Stock May Go 25% Higher
Why Visa’s Stock May Rise 14% in 2018
Why Celgene’s Beaten Down Stock Can Rise 28%
Ford Options Traders Bet Stock Will Fall 25% This Year
Biogen’s Bargain Price May Spur a 14% Stock Gain
Qualcomm Poised For 20% Drop After Broadcom Deal Halted
Nvidia’s Breakout Seen Fueling 14% Stock Gain
Why Overvalued Gilead May Fall 10%
3 Chip Stocks Poised to Rise as Much as 26%
Facebook Seen Rising 20% Defying Skeptics
Roku Shares Could Fall 50% Further
Why Micron’s Stock Bulls May Be Wrong
Why Bank Stocks Are Ready for a Short-Term Pullback
Join our 2,630 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
-OR-
[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]
Michael Kramer and the clients of Mott Capital own shares of NFLX GOOGL
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #sp500 #microsoft #broadcom #micron #oracle #GOOGL
Subscribe to receive this FREE daily commentary directly in your email
This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.