Chief Market Strategist at Virtus Investment Partners
Member since: Oct '21 · 386 Opinions
Looks for companies that have pricing power, like semis (i.e. Nvidia), software, insurance and private equity, but avoid commodities including oil which has pulled back and he doesn't see an improving supply/demand balance.
Shares are correcting, though the company is fundamentally strong. The next report in May will be crucial with more pressure than ever to deliver earnings. Algo funds focus only on share price, so when it moves down like today, those algos accelerate selling.
Last week, they had momentum on news of incorporating AI. It looked great. But now shares have fallen below $170 and that's disappointing. It has negative momentum.
It peaked in early March but remains resilient. It benefits from other health companies not announcing news that excites investors. LLY is universally owned.
Is rallying 14% after earnings. There were low expectations coming into that report.
Reported a good quarter this morning, so he bought more shares. GS is back, doing what they do best which is investment banking and the capital markets. They were paring back businesses last year and were less successfully. ROE is double in 2024 over last to 14.7%. They beat fixed-income revenues and equity trading revenue. They hit it out of the park. Is the top U.S. bank.
In acquisition talks, so shares are down 5% today. It's testing its 100-day moving average, not since November. Was a serial buyer of businesses. He hopes AI is a way for them to grow. We'll see where the latest deal goes.
Was downgraded today, but remember that Q1 is seasonally weak beacuse of weather. Q2 is seasonally stronger and expects so this year. Have a strong balance sheet and good momentum.
They report tomorrow and probably will report a loss. Delta which he also owns looks a lot better technically. It comes down to Boeing's delays in delivering 737 Max's.
They are crushing it, but sold his position way too soon. They report this week and he expects a solid beat, strongly benefitting from an improvement in capital markets.
South Korean e-commerce is strong given the consumer. Their paid membership prices are increasing 58%, so let's see if they have pricing power.
Cost efficiency can only go so far. They aren't Meta which has Instagram and other levers of growth to pull. Yes, they've cut costs and introduced share buybacks, but after this you need to see organic growth.
It's a larger read-through on the state of the consumer. Q1 is partially disappointing, delivering on earnings but need to deliver on guidance. Are concerns. They've disappointed here in the past, but quickly recovered. Shares have fallen below its 200-day moving average.
Technicals were already week coming into weak guidance. However, speculators are long LULU and this portends weakness short term.