The stock market witnessed a mixed session with notable movements in individual stocks, despite a general decline across major indices. Nutanix (NTNX, Financial) experienced a surge in its share price, climbing over 4% as William Blair upgraded the cloud software company. The firm highlighted a significant market opportunity for Nutanix following Broadcom’s (AVGO) acquisition of VMware, which has disrupted the infrastructure software space. Analysts pointed to a multiyear runway for Nutanix to capture market share, particularly with its Nutanix Cloud Platform and AHV hypervisor. Additionally, the partnership between Cisco (CSCO) and Nutanix has seen a spike in channel activity, further bolstering the company's prospects.
Amazon (AMZN, Financial) is focusing on enhancing its Alexa voice assistant with more advanced AI capabilities, aiming to introduce a subscription-based service by mid-year. Despite these efforts, the tech giant's shares dipped approximately 2% as the new "Remarkable Alexa" still struggles with complex customer requests. The company is considering charging for an upgraded version of Alexa due to the high costs associated with its development.
Apple (AAPL, Financial) faced a setback as a U.S. appeals court ruled to reinstate a ban on imports of certain Apple Watches equipped with blood oxygen sensors. This decision came after a patent infringement dispute with Masimo (MASI, Financial), and it implies that the affected Apple Watch models will be barred from importation while Apple appeals the initial ban issued by the U.S. International Trade Commission.
S3 Partners released a U.S. short interest recap, identifying stocks with potential for short squeezes. The analysis by Ihor Dusaniwsky highlighted stocks with high stock borrow rates and utilization, suggesting that these stocks could see short covering if market sentiment shifts. Among the stocks mentioned were VinFast Auto (VFS), Beyond Meat (BYND), and B. Riley Financial (RILY).
Plug Power (PLUG, Financial) saw its shares plummet to a four-year low, dropping 12.9% as the market recalibrated expectations ahead of the company's business update. Analysts remain skeptical about Plug Power's ability to meet its revenue and gross margin guidance for FY 2024, with Morgan Stanley maintaining an Underweight rating on the stock.
Verizon (VZ, Financial) disclosed a substantial impairment charge related to its Business Group, which will impact its fourth-quarter financials. The company cited "secular declines" as the reason for the $5.8 billion non-cash charge, reflecting the challenges faced in the wireline and wireless equipment segments.
Boeing (BA, Financial) and Spirit AeroSystems (SPR, Financial) are under scrutiny after a part manufactured in Malaysia for the Boeing 737 MAX 9 was involved in an incident with an Alaska Airlines flight. The National Transportation Safety Board is investigating the manufacturing and quality control processes for the component.
iRobot (IRBT, Financial), which is in the process of being acquired by Amazon (AMZN, Financial), saw its shares drop following concerns that the Federal Trade Commission may block the deal. This comes after a similar situation where a judge blocked JetBlue's (JBLU) acquisition of Spirit Airlines (SAVE).
Coinbase Global (COIN, Financial) awaits a decision from a judge on whether the SEC's case against the crypto exchange will proceed. The SEC alleges that Coinbase has been operating as an unregistered securities broker, a claim that the company denies.
Taiwan Semiconductor Manufacturing (TSM, Financial) is set to report its fourth-quarter results, with analysts anticipating a decline in both revenue and earnings. The focus will be on the company's outlook for 2024, as the semiconductor market is expected to see a recovery in demand.
Samsung (SSNLF, Financial) introduced its new Galaxy S24 lineup, featuring advanced AI capabilities, as it competes with Apple's (AAPL, Financial) upcoming iPhone models. The company has also partnered with Google (GOOG, GOOGL) to enhance the user experience with new search features.
Electric vehicle stocks, including TuSimple (TSP, Financial) and Fisker (FSR, Financial), experienced sharp declines amid growing concerns about the sector's outlook. TuSimple announced plans to delist from the Nasdaq, while Fisker faced a potential probe over its Ocean model's braking system.
China's industry ministry proposed guidelines for standardizing the AI industry, affecting stocks like Alibaba (BABA, Financial) and Baidu (BIDU, Financial), which saw premarket declines. The draft aims to establish national and international standards for AI by 2026.
Charles Schwab (SCHW, Financial) reported significant progress on the TD Ameritrade conversion, with 90% of client accounts and assets transferred. The company also discussed its financial performance and funding strategies during its Winter Business Update call.
Bank of America (BAC, Financial) continued its downward trend, marking a seventh consecutive session of losses. The bank's shares have been under pressure, with a short interest of 0.91% of the total float.
Devon Energy (DVN, Financial) is on a seven-day losing streak, with its share price declining by 8.5% over the last six trading sessions. The oil producer's stock has been affected by market volatility and sector-specific challenges.
JPMorgan Chase CEO Jamie Dimon expressed skepticism about Bitcoin (BTC-USD), advising clients to avoid the cryptocurrency and related ETFs. He differentiated between cryptocurrencies that serve practical purposes and those that he believes do nothing.
Microsoft (MSFT, Financial) is expected to see a significant boost in annual sales by 2025 due to artificial intelligence, according to Wedbush. The firm anticipates that AI will drive the next wave of growth for the tech giant, particularly in its competition with Amazon (AMZN, Financial) and Google (GOOG, GOOGL).
Instacart (CART, Financial) shares rallied after Wolfe Research upgraded the stock, citing underperformance concerns and potential financial synergies with Uber Technologies (UBER). The firm suggested that a merger between Instacart and Uber could be strategic for both companies.
