The stock market today saw significant movements in individual stocks, with iRobot (IRBT, Financial) experiencing a sharp decline. The robotic vacuum maker's shares plummeted by 20% following reports that Amazon (AMZN, Financial) is unlikely to offer concessions to appease European antitrust regulators. This news comes as the deadline for submitting remedies to the European Commission regarding Amazon's planned acquisition of iRobot approached. Despite the setback, Amazon's spokesperson stated that the company is working cooperatively with regulators. The European Commission had previously expressed concerns about the potential impact of the $1.4 billion sale on competition.
In the technology sector, optimism remains high among investors. A recent poll by Seeking Alpha indicated that nearly a third of its readers believe information technology will be the biggest winner among S&P 500 sectors in 2024. This sentiment follows a strong performance by the S&P Information Technology Index in 2023, which saw a total return of approximately 58%. The health care and energy sectors are also viewed favorably, with both expected to see significant gains in the coming year.
Viatris (VTRS, Financial) saw its stock trade higher after the company's presentation at the J.P. Morgan Healthcare Conference. The generic drugmaker, formed from a merger between Pfizer's (PFE, Financial) spinoff Upjohn and Mylan, outlined a strategy to generate substantial free cash flow over the next few years. CEO Scott Smith emphasized a focus on reinvestment and shareholder returns through dividends and share buybacks, as well as a strategic approach to business development that extends beyond mergers and acquisitions.
Cboe Global Markets (CBOE, Financial) announced new issue notifications for several proposed spot bitcoin exchange-traded funds, including Ark 21Shares Bitcoin ETF (ARKB, Financial) and Fidelity Wise Origin Bitcoin Fund (FBTC, Financial). While this does not indicate SEC approval, it informs investors of potential new products on the market. The notifications suggest that these funds could be available for trading soon, pending regulatory green light.
Williams Companies (WMB, Financial) CEO Alan Armstrong discussed the increasing demand for U.S. natural gas, projecting further growth by 2025. Despite a decline in prices last year, Armstrong expects a tapering of supply and a strong pickup in demand, particularly for liquified natural gas (LNG), as new facilities come online.
Toast (TOST, Financial) shares climbed after an upgrade from Goldman Sachs, which cited expectations for improved profitability trends in 2024. Analyst William Nance believes that the company will achieve higher market share and GAAP profitability by 2025, thanks to its competitive software platform and conservative revenue assumptions.
Chewy (CHWY, Financial) traded lower following the American Kennel Club's announcement of its online pet pharmacy, AKCRx. The move by the leading dog advocacy group, in partnership with Allivet, poses a direct challenge to Chewy's market. Additionally, a block trade of Chewy shares and a lowered price target by Goldman Sachs contributed to the stock's decline.
Analysts at BMO Capital Markets suggest that the technology sector (XLK, Financial) could outperform in the year following a two-year performance trend analysis. They recommend a growth-at-a-reasonable-price strategy within the sector, highlighting opportunities in smaller market cap tech stocks within the S&P 500.
Salesforce (CRM, Financial) and its subsidiary Slack are implementing a hiring pause in their tech and product divisions. The decision, detailed in a leaked memo, is set to affect the company's plans for the first quarter and beyond, with new positions only opening up as current employees leave.
PagerDuty (PD, Financial) saw its shares soar amid reports of takeover interest from private equity firms. While discussions are in the early stages, the potential sale could significantly impact the company's valuation and market position.
Skydance Media is reportedly considering an all-cash offer for Paramount Global's (PARA, Financial) parent company, National Amusements. If successful, the bid could lead to a merger between Paramount and Skydance, although discussions are still in preliminary stages.
Duke Energy (DUK, Financial) and Chesapeake Utilities (CPK, Financial) received upgrades from RBC Capital, with positive outlooks on their market positions and growth prospects. The broader utilities sector (XLU) is expected to recover from a poor performance in the previous year.
Morgan Stanley has raised price targets on several cybersecurity stocks, citing increased demand for cybersecurity services. The firm's top picks include Palo Alto Networks (PANW, Financial), Fortinet (FTNT, Financial), Tenable (TENB, Financial), and CrowdStrike (CRWD, Financial).
OpenAI, backed by Microsoft (MSFT, Financial), has launched the GPT Store, allowing developers to create custom artificial intelligence applications. This move highlights the growing interest and investment in generative AI technology.
Bitcoin (BTC-USD, Financial) experienced volatility following a fake SEC tweet announcing the approval of a spot Bitcoin ETF. The cryptocurrency's price spiked and then dropped as the market reacted to the false information.
Energy Transfer (ET, Financial) announced its intention to offer senior notes and junior subordinated notes in separate public offerings. The proceeds are intended to refinance existing indebtedness among other uses.
NuStar Energy (NS, Financial) faced a downgrade from J.P. Morgan due to concerns over its leverage and balance sheet strength compared to peers. The analyst also highlighted risks to contract renewal rates and the potential of new projects.
The materials sector saw a mix of gainers and losers, with WD-40 (WDFC) leading the gains and Lifezone Metals (LZM) experiencing the largest loss. The sector's performance continues to be closely watched by investors.
Federal Reserve Bank of New York President John Williams reiterated the need for restrictive monetary policy to combat inflation, suggesting that rates will remain high until inflation is sustainably moving towards the 2% goal.
Microsoft (MSFT, Financial) is on the verge of surpassing Apple (AAPL) as the world's most valuable company, driven by its successful cloud business and investments in AI.
