Streetbeat News

Earnings

AMZN

BBY

COST

KSS

TGT

WMT

A Goldman Sachs survey indicates that 61% of consumers will spend the same or more during the 2023 holiday season, with a focus on discounts and sales. Amazon (AMZN) and Walmart (WMT) are expected to be top destinations for shoppers. Department stores like Macy's (M) and Kohl's (KSS) may see weaker performance. The survey also suggests that gift cards, toys, games, and apparel will be popular gift items. E-commerce is projected to grow at twice the rate of total retail, with Amazon particularly well-positioned due to its fulfillment capacity and fast delivery options. The timing of Christmas Eve could further benefit Amazon's last-minute delivery advantage.

Portfolio Pulse from Chris Katje

November 22, 2023 | 7:40 pm

COST

Oppenheimer analyst Rupesh Parikh maintains an Outperform rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $630, citing steady growth potential into 2024. November sales and Q1 earnings dates are announced. A modest November U.S. comp forecast of +3% is expected, with a four-year adjusted trend moderating to +30.9% from October's +36.4%. Potential catalysts include a membership fee increase and a special dividend, though their likelihood by end of 2023 is uncertain. Investors are advised to buy on weakness. COST shares recently traded higher by 1.01% at $590.21.

Portfolio Pulse from Shivani Kumaresan

November 22, 2023 | 7:35 pm

AMD

AMZN

MSFT

NVDA

Nvidia Corporation (NVDA) exceeded Q3 expectations with revenue of $18.12 billion and adjusted EPS of $4.02, driven by strong demand for GPUs amid AI hype. However, shares fell due to concerns over US export curbs impacting Q4 revenue. Nvidia's data center revenue, which includes sales to Amazon (AMZN), rose 279%. Nvidia faces competition from AMD, which is catching up in AI chip innovation. Generative AI demand is high, benefiting Nvidia, but US restrictions and competition may pose challenges.

Portfolio Pulse from Upwallstreet

November 22, 2023 | 7:31 pm

AEO

KSS

URBN

Telsey Advisory Group analyst Dana Telsey provided insights on Q3 FY23 earnings for Kohl's (KSS), American Eagle Outfitters (AEO), and Urban Outfitters (URBN). Kohl's exceeded EPS expectations due to gross margin expansion, driven by lower costs and successful Sephora shops, despite disappointing top-line results and higher expenses. American Eagle's modest earnings beat was attributed to better expense control and improving inventory positions, but faced a softer gross margin and uncertain consumer spending. Urban Outfitters surpassed EPS estimates with strong sales growth and gross margin expansion, although consumer demand slowed and inventory levels were elevated, potentially impacting Q4 margins.

Portfolio Pulse from Shivani Kumaresan

November 22, 2023 | 7:26 pm

GES

JWN

URBN

Urban Outfitters, Inc. (NASDAQ:URBN) shares dropped by approximately 10% despite reporting Q3 earnings of 88 cents per share, above the consensus estimate of 82 cents, and record sales of $1.28 billion, surpassing expectations of $1.26 billion. Other stocks experienced movements in Wednesday's mid-day session, with notable gainers including AgileThought, Inc. (AGIL), PaxMedica, Inc. (PXMD), and SciSparc Ltd. (SPRC), among others. Losers included Alterity Therapeutics Limited (ATHE), MIRA Pharmaceuticals, Inc. (MIRA), and Tharimmune, Inc. (THAR), with companies like Guess?, Inc. (GES), Nordstrom, Inc. (JWN), and Deere & Company (DE) also reporting declines after their financial results.

Portfolio Pulse from Lisa Levin

November 22, 2023 | 7:03 pm

LYFT

UBER

Piper Sandler analyst Alexander Potter maintained an Overweight rating on Lyft, Inc (NASDAQ:LYFT) with a price target of $14, despite shares being down 3% since Q3 results. Lyft's Q3 revenue of $1.158 billion exceeded estimates, with $3.55 billion in gross bookings. Lyft's take rate of 33% is higher than Uber's 28%, attributed to micro-mobility inclusion. Investors expected more generous Q4 guidance. Lyft's new management is building confidence with increased transparency in business metrics. Potter views Lyft as resilient to recession, especially compared to food delivery. He adjusted his estimates based on Q3 results but kept the price target due to a higher WACC of 13.9%. He projects Q4 revenue and EPS of $1.22 billion and $0.08, respectively. Lyft shares traded slightly lower at $10.35.

Portfolio Pulse from Anusuya Lahiri

November 22, 2023 | 6:54 pm

META

Meta Platforms Inc. (NASDAQ:META) hit a 52-week high, trading over $342, with a 174% increase this year and a 210.90% rise over the past year. Despite a high Fwd P/E of 23.5, analysts remain bullish, with Tigress Financial upgrading META to Strong Buy and a $435 price target, and Stifel maintaining a Buy rating with a $405 target. META's shift to Generative AI and strong Q3 earnings, with $34.15 billion in revenue and $4.39 EPS, contribute to its positive outlook.

Portfolio Pulse from Surbhi Jain

November 22, 2023 | 6:37 pm

BBAR

Banco BBVA Argentina's stock is trading lower following the release of their Q3 financial results.

Portfolio Pulse from Benzinga Newsdesk

November 22, 2023 | 6:33 pm

GDDY

RBC Capital Markets analyst Brad Erickson upgraded GoDaddy Inc (NYSE:GDDY) to Outperform from Sector Perform and increased the price target to $124 from $90. Erickson highlighted GoDaddy's potential to benefit 'outsizedly' from AI tools, which could reduce customer acquisition friction. Despite the web design industry's top-of-funnel trends underperforming, GoDaddy's customer acquisition channel is seen as a tailwind. The analyst also expects cost synergies from workload migration/unification and ties heavy product development investments to potential revenue growth. Revenue and adjusted EBITDA forecasts for FY23 are $4.255 billion and $1.124 billion, and for FY24, $4.61 billion and $1.377 billion, respectively. GoDaddy's Q3 FY23 results exceeded expectations, with revenue of $1.070 billion and EPS of $0.89. Following the news, GDDY shares rose by 2.85% to $95.51.

Portfolio Pulse from Lekha Gupta

November 22, 2023 | 6:19 pm

NVDA

NVIDIA Corporation (NASDAQ:NVDA) has seen its shares rise significantly in 2023, driven by growing interest in AI. Analysts from Goldman Sachs, Piper Sandler, Morgan Stanley, Oppenheimer, and Needham have reacted positively to NVIDIA's Q3 earnings and forward guidance, with increased price targets and ratings ranging from Buy to Overweight. The Data Center segment's strong performance and the company's position in AI were key highlights, despite concerns about China's restrictions. NVDA shares were down 2.1% post-earnings.

Portfolio Pulse from Chris Katje

November 22, 2023 | 6:15 pm