• Biden's quick rise amid a strong showing on Super Tuesday, at the cost of Sander's momentum, is powering stocks this morning, particularly in the healthcare sector as the prospects of "Medicare for All" dim.
  • Healthcare stocks across the board (health care insurers, benefits managers, drug stores) such as Anthem, UnitedHealth, Humana, CVS are all up pre-market 5% to 10%.
  • Really quite astounding.
  • Not surprisingly, based on channel checks, the analyst has lowered earnings citing that the coronavirus concern has hurt cross-border travel, especially to Asia, and impacted e-commerce.
  • He expects earnings from Mastercard and Visa to be the most affected in Q1, with PayPal also impacted although it has lower margins but also more variable costs in its business model.
  • Visa, Mastercard and PayPal stocks are all down 1.5% to 2.5% today.
  • High profile call from Goldman today saying that the global spread of coronavirus would put S&P 500 earnings growth at zero this year.  They are forecasting 6% growth in 2021.
  • They are recommending investors switch into defensive stocks such as REITs (because of recurring domestic focused earnings) and utilities. They lowered their allocations to industrials and financials.
  • They share a consensus view that the US will be less impacted by coronavirus relative to the rest of the world, but stocks will continue to be impacted until the coronavirus is brought under control.
  • Shopify has been a hugely successful e-commerce company that helps smaller businesses set-up an on-line presence and the company has a larger market share of retail ecommerce than Ebay's (5.9% vs 5.7%.
  • The company is working to expand its commercial footprint by expanding into off line point of sale hardware and fulfillment.
  • But, the stock is up 180% the past year, and as the article rightly points out its priced to perfection trading at 37 times trailing revenues, while revenue growth is slowing and no path to profitability.
  • We like it when writers, analysts etc. take a stance.  In this case, despite the big run, Street sentiment remains positive with 15 of 28 covering analysts Buy rated (11/20).
  • Not surprisingly, the mega players are starting to move into the plant based meat product market with Cargill's announcement that the company will introduce fake beef products in April.
  • Beyond Meat stock is down 3.0% today in a down market.
  • Cargill has made  "strategic investments in the alternative protein space." and intends to leverage its global supply chain to more produce and deliver "fake meat" products to restaurants and grocery stores. This seems like the start of a game changer in the industry.
  • Analyst's bull case scenario (and his $1,200 PT) assumes Tesla takes 30% of the global electric vehicle market producing four million deliveries by 2030 as well as exploiting the opportunity to supply powertrains, including batteries and electric motors, to other automakers.
  • The based case ($500 PT) assumes the company becomes the battery supplier for other car makers.
  • Lots of additional positive commentary on CNBC this morning.
  • Good run down of an interesting down grade as Cowen goes to UNDERPERFORM from OUTPERFORM.
  • Analyst cites a more tempered view of the impact of 5G adoption, especially as most of the initial rollout will occur in China and Japan, both markets where Marvell has little market presense.
  • Over the next eight quarters, Cowen sees impact of 5G on Marvell earnings of $.25/share versus consensus at $.80/share.
  • Analyst also sees weakness in Marvell storage business, below company expectations.
  • After big run up with stock up more than 30% the past year, the stock was down 6.7% likely on the downgrade.  We'd note Street sentiment remains positive on the stock.
  • Good run down of Amazon's monster quarter with the stock up 9% today.
  • For such a large company, the big growth numbers were impressive with 4Q revenue growth of 21% and guided 1Q growth of 16% to 22%, seemingly conservative.
  • 1-Day delivery drove the e-commerce business.
  • AWS growth of 34% beat consensus with the Street surprised in the face of the traction of Microsoft's competing Azure product.  One analyst noted that AWS is very high margin accounting for an estimated 90% of operating income.
  • Amazon  Prime hit 150 million members with 4Q adds the highest in company history.
  • Shipping expenses continue to rise up 42% during 4Q, after being up 46% in 3Q.
  • After spending $15 billion on content in 2019 (50% on original), the company expects to spend more this year.  The company clearly values the attention/awards its films receive from the Academy etc., and the value of watching a high quality film at home versus going out and watching in a theater and spending $100.
  • International sub growth is an important driver of the stock, which benefits from local language content.
  • Nice run down of the MS upgrade, although the stock has been flying since mid August moving up from about $8. Street sentiment remains mixed on the stock. Price Target is $14.
  • Analyst cites growing tail wind as risks decline from the company's power business and its pension and healthcare liabilities. Analyst calls it a "budding turnaround".
  • When the company reports January 29 focus will be on cash flow, after 3Q guidance was raised last quarter as the company improves its balance sheet.