Today, Rob Sechan, Managing Partner, New Edge Capital and Bryn Talkington commented about whether NVDA-Q, ET-N, TSLA-Q, JEF-N, LOW-N, HD-N, MA-N are stocks to buy or sell.
Earnings decelerated the last couple of years and have no flattened, but will grow again, she expects by 7%. People are excited by this name for its robotics, AI and self-driving cars. It's not only a car company. She had sold in the $200s the January $400 strike price. Tesla has a beta of 2. Be cautious going into earnings on Jan. 23, because there's some hype in the $400s. More normal would be the $300s.
They're spending at least $80 billion of capex in AI to keep up with peers, but this has been overhang on the stock. Shares are up only 13% this year, lagging Mag 7 peers. It's early--we don't know what's going on with their AI, but MSFT's suite of services have always been aimed at operational efficiency. We'll see how their AI plays out in coming quarters.
Is up 13% for the year, but most of those gains happened in January, driven by AI hopes. MSFT is spending a lot on AI. The stock is running in place, and expects it to restart its positive momentum. However, we need to first see benefit coming from their AI spending. Near-term, the tech winners in AI are Amazon, Alphabet and Nvidia. But set your expectations for MSFT for the long term.
Trading at a high 32x forward PE, but shares are near 52-week highs. Is growing around 15% in earnings despite a challenging macro. Cross-border travel continues to beat expectations. Consumers are also seeing higher wages to fuel their spending.