Alpha Coverage #13
Weekly Stock Market Newsletter - News/Articles/Podcasts/YouTube/Books
Weekly newsletter bringing you a summary of critical, thesis changing stock market news. We cover news articles, opinion pieces and all forms of media to help you stay informed.
We cover over 250 tickers across US Equities, Emerging Market equities, Equity ETFs, Commodities ETFs, Income ETFs, Leveraged ETFs, Crypto & REITs & mREITs.
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Editor’s Pick:
SPY 0.00%↑ AAPL 0.00%↑ TSLA 0.00%↑ #BTC #ETC
Invesco measures the current market concentration of supporting mega-caps to the 2000 bubble
The firm highlighted that the S&P 500 Index is currently more concentrated in its top 10 holdings now than it was at the peak of the 2000 equity market bubble.
However, Invesco stated: “The gap between the market share and earnings share of the top 10 companies is currently only one-third of what it was in 2000. This suggests that the fundamentals of today’s mega-caps are significantly stronger.”
It added: “The current valuations of the top 10 holdings in the S&P 500 Index don’t compare to the 1999 Nasdaq bubble. Then, the median price-to-sales of the top 10 largest NASDAQ Composite Index companies by market capitalization was 21.9x. Currently, for the S&P 500 Index, it’s 5.8x.”
Link to Seeking Alpha News Article - Jun. 30, 2023
Enphase Energy, solar stocks' targets cut as Susquehanna sees softer demand
Susquehanna said its biggest takeaway from conversations with installers has been softening demand in U.S. residential markets, especially outside of California, where installations are still working through the pre-NEM backlog and which should sustain installations through Q3.
Link to Seeking Alpha News Article - Jul. 06, 2023
FSLR 0.00%↑ ENPH 0.00%↑ TSLA 0.00%↑
First Solar And Other Renewable Energy Stocks That Benefit From $400 Billion IRA Bill
We believe those companies that have these three characteristics stand to benefit the most. 1) Meaningfully collect the IRA corporate tax credit 2) Established US based manufacturing operations and 3) Viewed as important players in the IRA.
Based on these criteria, we believe First Solar (NASDAQ:FSLR) stands to benefit.
We have a preference for companies who are selling to utilities such as First Solar rather than those selling to consumers via installers, such as Enphase. Enphase will not immediately benefit and the impact will be smaller, plus management pointed out near-term macro concerns due to higher interest rates affecting their business. Tesla may potentially benefit from its battery operations which could provide a buffer to its automotive margins if it continues to lower prices to gain share.
Link to Seeking Alpha News Article - Jun. 28, 2023
News, Facts, Analyst & Market Commentary - Short Reads
SPY 0.00%↑ AAPL 0.00%↑ TSLA 0.00%↑ #BTC #ETC
S&P 500 ends H1 with a nearly 16% jump as Wall Street looks ahead to rest of the year
See a breakdown of the performance of the sectors as well as their accompanying SPDR Select Sector ETFs from December 30, 2022 close to June 30, 2023.
Link to Seeking Alpha News Article - Jun. 30, 2023
SPOT 0.00%↑ GOOG 0.00%↑ GOOGL 0.00%↑
Spotify evaluating adding music videos to its app - report
Spotify (NYSE:SPOT) is considering adding full-length music videos to its app as it tries to better compete with Alphabet's (GOOGL) YouTube and ByteDance's (BDNCE) TikTok.
Link to Seeking Alpha News Article - Jul. 02, 2023
DDOG 0.00%↑ NFLX 0.00%↑ DIS 0.00%↑
Netflix, Disney, Datadog among BofA's 10 best ideas for Q3
A team of Bank of America's analysts noted there is likely to be a summer rally, with the firm's equity strategist recently declaring the end of the bear market.
Link to Seeking Alpha News Article - Jul. 03, 2023
WYNN 0.00%↑ LVS 0.00%↑ NVDA 0.00%↑ AMD 0.00%↑ QCOM 0.00%↑ AMAT 0.00%↑ ALB 0.00%↑
As China slowdown continues, here are the U.S. stocks with the most exposure
In its global exposure guide, Morgan Stanley listed the companies with the most revenue exposure to China.
Link to Seeking Alpha News Article - Jul. 06, 2023
Joby Aviation extends rally as FAA certification process advances
Joby Aviation (NYSE:JOBY) announced on Thursday that it has submitted all of its certification plans to the Federal Aviation Administration in a step the company said marks further progress toward completing the third of five stages required to certify its aircraft for commercial use.
Link to Seeking Alpha News Article - Jul. 06, 2023
Google reportedly delaying first customized smartphone chip until 2025
The tech giant had plans to release the chip in 2024 and replace processors made by Samsung (OTCPK:SSNLF), according to The Information, which cited two people with direct knowledge of the situation. However, Google (GOOG) (GOOGL) intends to stay with Samsung (OTCPK:SSNLF) until 2025, before introducing a completely custom chip, the people added.
Link to Seeking Alpha News Article - Jul. 06, 2023
AMZN 0.00%↑ CMG 0.00%↑ GOOGL 0.00%↑ LLY 0.00%↑ NFLX 0.00%↑ SEDG 0.00%↑
BofA highlights July’s top 10 growth and value stocks
BofA highlighted in the note: “The screens are quantitatively generated and are based on our proprietary BofA vs. Consensus Earnings Surprise Model plus three additional screening criteria. The universe we use is the S&P 500.”
Link to Seeking Alpha News Article - Jul. 06, 2023
Opinion Pieces - Facts & Opinions - Long Reads
Microsoft's Upcoming Console-Seller Paves Way For Acceleration In Gaming
Bethesda has been working on a new IP called Starfield for several years. It is the studio's first new universe in 25 years and is a space exploration RPG game with 1000 planets. The technology used to make the game has only recently been powerful enough to support such a large universe. It is easily one of the most anticipated games of the year. And it is expected to sell more Xbox consoles simply because people want to play this game (thus the game is being dubbed a "console-seller"). The game will be exclusive to Xbox consoles and PC, meaning Sony's PlayStation console gets left behind on earth here so to speak.
Link to Seeking Alpha Opinion Piece - Jun. 29, 2023
Eli Lilly: Miracle Drug Progress Offers Shareholders More Upside
Management was able to start selling Mounjaro last year. And already, the drug is proving to be one of the most successful in the history of medicine. In the short time that it was available for sale in 2022, it generated revenue of $482.5 million. That translated to only 1.7% of the company's overall sales last year. In the first quarter of this year, sales ballooned to $568.5 million, which works out to 8.2% of overall revenue for the enterprise. Analysts have had high hopes for this drug. Some have even gone so far as to estimate that, at its peak, that drug could be responsible for $25 billion a year of revenue. That would make it the ‘biggest drug ever’ according to analysts at UBS Group (UBS).
Link to Seeking Alpha Opinion Piece - Jun. 30, 2023
Hims & Hers Health: Double-Edged Sword
A deep-pocketed competitor that seeks to compete on cost could significantly erode Hims' margin profile over the coming years. Whether this risk materializes or not remains to be seen, and it's certainly possible that it will never truly materialize or that Hims will win in the end.
Link to Seeking Alpha Opinion Piece - Jul. 02, 2023
JEPQ: Striking The Balance And Enjoying 11% Yield
JEPQ is a suitable investment for those seeking attractive yields and exposure to equity rallies but who are also cautious about the potential for a market decline.
Link to Seeking Alpha Opinion Piece - Jul. 03, 2023
Disclosure: We own positions in some/all of the tickers mentioned in this article.
