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This Week’s a.i. Stock Spotlight is TESLA Motors ($TSLA)

Tesla has been making waves in the auto industry, led by the charismatic and visionary CEO Elon Musk. Since June 2014, Tesla’s stock has skyrocketed by an impressive 1,050%, vastly outperforming the Nasdaq Composite Index, despite a recent pullback of 56% from its peak. This indicates a rollercoaster journey for investors who’ve hitched a ride on Tesla’s high-octane stock. Currently, Tesla’s bread and butter is its car sales, which generate 85% of its whopping $97 billion revenue. The company has a robust lineup of five models, with plans to expand. Looking ahead, it’s clear Tesla isn’t swerving from its path of designing, manufacturing, and selling vehicles globally. However, the road forward isn’t without bumps. Growth is expected to downshift, thanks to stiff competition and economic headwinds, forcing Tesla to slash prices to fuel demand. The next decade may not mirror the explosive growth of the past. Yet, there are believers like Cathie Wood from ARK Invest who see a transformative future for Tesla. Wood envisions a lucrative robotaxi industry, potentially raking in $8 to $10 trillion annually by 2030, with Tesla at the forefront, capitalizing on its advanced artificial intelligence for autonomous driving. This audacious projection paints a future where Tesla could dominate a driverless taxi market. Despite these grand visions, there’s plenty of skepticism. Musk has repeatedly delayed this futuristic tech, raising questions about its viability amidst technical hurdles and regulatory challenges. If Tesla does manage to roll out a global fleet of robotaxis, we could see its stock soar once again. But let’s face it—the odds are challenging, and betting on such an outcome carries considerable risk. Tesla’s journey continues to be one of high risk and potentially high reward. The most pressing questions traders and investors are asking about Tesla ($TSLA) at present include: 1. **How is Tesla navigating the increasing competition in the electric vehicle (EV) market?** 2. **What are the implications of recent regulatory challenges on Tesla’s operations and growth?** 3. **How is Tesla managing supply chain disruptions, particularly with regard to battery production?** 4. **What are the expectations for Tesla’s financial performance in the upcoming quarters?** 5. **How is Tesla expanding its footprint in renewable energy and autonomous driving technologies?** The answers to these questions are challenging to say the least. What traders and analysts are doing is pouring over $TSLA’s financials and earnings calls to see if they can uncover any breadcrumbs to help put the puzzle together. Over the last 5 years $TSLA has increased revenue exponentially.

Earnings have also followed suit.
Over the past few months Tesla has faced increasing scrutiny from regulators in multiple countries regarding safety and driver-assistance technologies. This has raised concerns about potential fines and the need for significant adjustments to their Autopilot system. With new EV models entering the market from traditional automakers and startups alike, Tesla is experiencing heightened competition. This has prompted the company to innovate and potentially adjust pricing strategies to maintain its market share. Global supply chain disruptions, particularly in semiconductor availability and battery components, have impacted Tesla’s production timelines. However, Tesla’s proactive measures in securing long-term supply agreements are seen as a strategic move to mitigate these risks. Tesla’s recent earnings report highlighted robust growth in revenue and vehicle deliveries. However, concerns over rising operational costs and capital expenditures were also noted by analysts. Tesla’s push into renewable energy solutions, including solar energy and energy storage products, continues to grow, offering promising new revenue streams. Over the past month, the stock has soared by about 30%, a sign of renewed investor confidence. This rally comes just ahead of Tesla’s anticipated second-quarter EV delivery report. Despite lowered estimates, investors are feeling optimistic thanks to robust delivery data from Chinese EV makers. The Chinese EV market is vital for Tesla, especially with its highly productive Shanghai factory. Today, several Chinese EV companies reported strong delivery numbers for June and the second quarter, setting a positive tone for Tesla’s upcoming report. Companies like Nio, Li Auto, XPeng, and the industry giant BYD all showed impressive year-over-year growth in battery-electric vehicle (BEV) sales. Notably, Nio hit a monthly record by delivering 21,209 vehicles in June, nearly double its June 2023 figures. BYD, whose BEV sales volumes are comparable to Tesla’s, sold over 426,000 fully electric vehicles in the second quarter, marking a 21% increase year-over-year. Analysts have been tempering their expectations for Tesla’s second-quarter sales, with the latest projections averaging around 420,000 EVs, down from approximately 466,000 in the same period last year. This would mark the second consecutive quarter where BYD outpaced Tesla as the world’s largest EV seller. With signs of recovery in China’s EV market, Tesla could potentially exceed these conservative estimates. However, investors should keep a close eye on Tesla’s profit margins in its full second-quarter financial report. If sales boosts are driven by price cuts, the current surge in share price may be short-lived. Tesla’s next earnings call is on July 23, 2024. Earnings are the key driver here. In this weekly stock study, we will look at an analysis of the following indicators and metrics which are our guidelines which dictate our behavior in deciding whether to buy, sell or stand aside on a particular stock. Wall Street Analysts Ratings and Forecasts 52 week high and low boundaries CyberFusion5.0 Forecast (Predictive Blue Line) Neural Network Forecast (Machine Learning) CyberFusion5.0 Daily Range Forecast Intermarket Analysis Our Suggestion While we make all our decisions based upon the artificial intelligence forecasts, we do look at the fundamentals briefly, just to understand the financial landscape that $TSLA is operating in. Wall Street Analysts Forecasts Based on 34 Wall Street analysts offering 12-month price targets for Tesla in the last 3 months. The average price target is $182.82 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a -20.95% change from the last price of $231.26.

This level of divergence of perspective on the company from Wall Street Analysts tells us as traders that massive volatility is baked into the price action for $TSLA. We always advise traders to pay close attention to the most bullish and most bearish forecasts and compare this quantity to the current price. We have been tracking $TSLA for many years and 124% expected volatility is the highest that we can ever recall. 52 Week High and Low Boundaries Over the past year, Tesla’s stock (TSLA) reached a 52-week high of $299.29 on July 19, 2023, and a 52-week low of $138.80 on April 22, 2024.

Let’s zero in on the rollercoaster ride that is TESLA stock ($TSLA) over the past year. This powerhouse hit a high of $299.29 and dipped to a low of $138.80 — that’s a swing of $160.49. Cracking into these figures, we see TESLA ($TSLA) has shown a historic annual volatility of 69%. What’s the takeaway here? It tells us loud and clear that swings of about 69% up or down are totally on the table for TESLA ($TSLA) in the coming year. But here’s where it gets spicy: TESLA ($TSLA) is trading at the 57th percentile of its 52-week range. That’s right, at the middle of its game. The 52-week boundaries of a stock are similar to a report card. We can quickly see the momentum and growth that a stock has mustered over the previous year. More importantly we can get a glimpse of how a stock has reacted when it approached these important boundaries. When we zoom out and look at the 10-year chart we can easily see how the past year compares to the previous decade.
Best-Case/ Worst-Case Scenario Let’s break down an indispensable tool for every sharp investor and trader—grasping the critical balance between risk and reward. This isn’t about tangled strategies; it’s about clear-cut analysis that reveals the stark realities of the best and worst outcomes. Picture this: we’re mapping out the high points and low points of market movements over the past year, like a captain steering through a wild ocean storm. This is your secret weapon to understanding the true nature of risk and reward in the gritty world of market volatility. Envision this: we’re linking up the most powerful surges and sharp falls, similar to charting the rise and fall of ocean waves. This goes beyond mere market lingo; this is about diving deep into the essence of risk and reward with TESLA. By engaging in this straightforward exercise, you can swiftly decode the scenarios of highest gain and deepest loss. Here’s what it boils down to: we must meticulously weigh those bullish surges against the bearish drops. It’s akin to navigating through rough seas, where recognizing the risks and volatility becomes crucial. But this isn’t just some clever trick; it’s about adopting a battle-tested mindset. By dissecting both the peaks and troughs, we unlock a full understanding of what a stock is capable of. It’s not just about predicting future profits; it’s about confronting the harsh realities of risk head-on. This method guides us through the chaotic waters of market shifts, exposing the real dynamics at play. So, don’t just glance over those charts; dig into them. This is more than tactics; it’s about developing a solid strategy that enables you to make informed decisions, manage your risks, and build an investment portfolio that can stand up to any challenge. Let’s get into the thick of it. From this perspective, we can quickly see the potential upsides and pitfalls of the past year for TESLA. First off we study the Best-Case Scenario which entails buying at the bottoms and selling at the tops. While this is unrealistic, we simply want to measure the strength of the rallies.

Followed by the Worst-Case scenario which entails buying at the tops and selling at the bottoms. The purpose of this simple exercise is to measure the magnitude of the declines. By completing this simple exercise, we immediately understand the level of volatility that has existed in $TSLA over the past year. This allows us to form a practical perspective and understanding that should the future mirror the recent past we can expect this type of volatility to continue moving forward. Next we compare $TSLA to broader stock market indexes to understand its correlations and performance. $TSLA in a component of the S&P 500, The NASDAQ, and the Dow Jones Industrials. Over the very short-term time frames $TSLA has outperformed. Over the longer-term time frames it has massively underperformed. Lastly, to get even more granular we can compare $TSLA in comparison to its domestic competitors.

This competitor analysis shows that $GM and $FSR are clearly outperforming $TSLA.? But once again $TSLA over the short-term time frames wins handily. CyberFusion5.0 Predictive Blue Line

The core principles guiding traders in their dealings with TESLA ($TSLA) stock revolve around utilizing advanced tools for predictive trend analysis. The “predictive blue line,” a key tool offered by VantagePoint, provides insights into future market movements. When this line indicates an upward trend, it suggests a potential rally, prompting traders to consider buying. Conversely, a downward trend signals possible price drops, advising caution or a defensive strategy like hedging. Around the predictive blue line is the ‘Value Zone,’ where traders strategically buy or sell based on the line’s position relative to stock price movements, aiming to maximize gains and minimize risks. The predictive blue line acts like a lighthouse, guiding traders through the complexities of stock fluctuations with the help of artificial intelligence. This tool isn’t just another chart feature; it’s akin to a financial GPS, offering real-time insights that are crucial for making informed trading decisions in today’s fast-paced market.

When you study the chart above, look at how the predictive bleu line acts like a “value zone” enticing swing traders to purchase at or below its level. CyberFusion5.0 Neural Index Forecast (Machine Learning) A neural network is like a super-smart robot that acts a lot like the human brain, especially when it comes to trading in the stock market. It’s a tool that helps traders by recognizing patterns and solving problems fast by looking at heaps of information all at once. Imagine it as a high-tech helper that can spot trends and odd things in the market that are hard for people to see. This is super helpful for traders because it helps them predict what might happen next in the market, like if stock prices are going to go up or down. Neural networks are amazing because they can make these predictions quickly and accurately, which is a game changer in the fast-moving world of trading where every second counts. They’re like unbiased advisors, making decisions based on facts and data, not feelings, which means they can help traders stay cool and make smart moves. Plus, these networks keep getting better over time, learning from new data, and adjusting to changes in the market, making them an invaluable tool for traders looking to step up their game and make better trading decisions. When the Neural Index is green it indicates a bullish sentiment for the next 48 – 72 hours. When it turns red it communicates the inverse. Observe how the Neural Index anticipates short-term price movements very effectively.

This isn’t merely progress; it’s a transformation, catapulting trading strategies into an entirely new stratosphere. For traders keen on leveraging the forefront of technology to master the markets, neural networks are crucial. They’re not just altering the game—they’re crafting entirely new rules. CyberFusion5.0 Daily Range Forecast Let’s tackle one of the most formidable challenges in trading—discerning precisely when to make your move or when to exit the fray. The whims of market volatility can confound even the seasoned trader, complicating these critical decisions. For those keeping a keen eye on stocks like Tesla ($TSLA), mastering the timing is all about understanding the subtle fluctuations across daily, weekly, and monthly trading ranges—and adeptly applying that knowledge. But let’s cut to the chase: it’s not merely about possessing the data; it’s fundamentally about transforming that data into victorious strategies. Enter the formidable arsenal of A.I., machine learning, and neural networks. These aren’t merely trendy technical jargon—they serve as your navigational chart through the turbulent waters of the financial markets. They offer crystal-clear, actionable insights into market trends and precisely delineate trading ranges with astonishing accuracy, dramatically reducing the guesswork involved in your trading decisions. Now, let’s examine the volatility that has characterized Tesla ($TSLA) over the past year, detailed by daily, weekly, and monthly time frames. This type of intelligence can significantly sharpen your trading acumen. Amidst the prevailing market volatility, the CyberFusion5.0 Daily Range Forecast emerges as a crucial tool for traders. With its unmatched accuracy and thorough analysis, this technology grants short-term swing traders a distinct advantage, empowering them to navigate the market with renewed confidence. The tool provides detailed predictions of daily market movements, clearly defining market trends and expected trading ranges. This level of detail enables traders to meticulously craft their entry and exit strategies, greatly enhancing their confidence. Leveraging advanced analytics, traders are able to transform intricate market data into practical, actionable strategies, setting the stage for significant growth even in the most unpredictable financial climates. The precision offered by predictive analytics is indispensable for traders eager to leverage market dynamics, underscoring the pivotal role of advanced technological tools in contemporary trading. Intermarket Analysis Intermarket analysis is a strategic trading approach that leverages the correlations between different financial markets, such as stocks, bonds, commodities, and currencies, to forecast price movements and enhance trading decisions. By examining the interplay between various asset classes, traders can uncover broader market trends, pinpoint potential turning points, and craft more robust trading strategies. Pioneered by figures like John Murphy, who illustrated these relationships in “Intermarket Technical Analysis,” and Lou Mendelsohn, who integrated this concept into VantagePoint software, this method has become a critical tool for traders. It allows them to anticipate market shifts based on a comprehensive analysis of factors including interest rates, economic indicators, and geopolitical events, thereby increasing their ability to spot undervalued opportunities and boost profitability.

Intermarket analysis is a game-changer for Tesla traders, offering a panoramic view of how interconnected markets like stocks, bonds, commodities, and currencies can influence Tesla’s stock moves. By keeping an eye on factors like commodity prices for crucial battery components or broader tech sector trends, traders can pinpoint optimal moments to make their moves, manage risks more effectively, and even capitalize on shifts in energy prices that affect electric vehicle appeal. This method doesn’t just look at Tesla in isolation but considers a whole spectrum of economic indicators and market dynamics, arming traders with the insight to navigate the market’s waves with precision and confidence. Our Suggestion As this stock analysis was being written Tesla reported its second-quarter vehicle production and delivery numbers for 2024, with 410,831 vehicles produced and 443,956 delivered, surpassing Wall Street’s expectations of 439,000 deliveries. Despite beating estimates, the delivery figures represent a 4.8% decline from the previous year’s second quarter, but a 14.8% increase from the first quarter of 2024. Tesla’s stock surged by 10% following the announcement, even though it’s still down about 7% for the year. The decline in deliveries compared to the previous year was attributed to factors such as temporary factory shutdowns due to an alleged arson attack in Germany and shipping delays caused by conflicts in the Red Sea. We think TESLA ($TSLA) deserves to be on your trading radar because of its volatility and because of how effective the ai forecasts have been. If you have paid attention to TESLA for any period you will quickly recognize that the stock is incredibly volatile, and we expect this to continue moving forward. Highly volatile assets are where the CyberFusion5.0 software shines. As Tesla concludes its annual meeting, the focus now shifts to the firm’s second-quarter earnings, set to be unveiled on July 23. Additionally, anticipation is building for the grand reveal of Tesla’s robotaxi, slated for August 8. This marks a pivotal moment for the electric vehicle giant as it steers into potentially transformative new territories. Our suggestion is to monitor the daily range forecast for short-term positioning opportunities. Practice good money management on all of your trades. Let’s Be Careful Out There. It’s Not Magic. It’s Machine Learning. Disclaimer: THERE IS A HIGH DEGREE OF RISK INVOLVED IN TRADING. IT IS NOT PRUDENT OR ADVISABLE TO MAKE TRADING DECISIONS THAT ARE BEYOND YOUR FINANCIAL MEANS OR INVOLVE TRADING CAPITAL THAT YOU ARE NOT WILLING AND CAPABLE OF LOSING. VANTAGEPOINT’S MARKETING CAMPAIGNS, OF ANY KIND, DO NOT CONSTITUTE TRADING ADVICE OR AN ENDORSEMENT OR RECOMMENDATION BY VANTAGEPOINT AI OR ANY ASSOCIATED AFFILIATES OF ANY TRADING METHODS, PROGRAMS, SYSTEMS OR ROUTINES. VANTAGEPOINT’S PERSONNEL ARE NOT LICENSED BROKERS OR ADVISORS AND DO NOT OFFER TRADING ADVICE.

Key Takeaways
The judge overseeing the massive credit card swipe-fee lawsuit reportedly is likely reject the agreement. The deal struck in March would have Visa and Mastercard reduce what they charge merchants to make card transactions. Critics said the plan didn’t go far enough to address antitrust issues. Shares of Visa ( V ) and Mastercard ( MA ) edged lower in intraday trading Friday, a day after a federal judge reportedly threw cold water on a proposed $30 billion settlement of a long-running lawsuit charging big credit card providers of limiting competition through fees on merchants. Court records from the Eastern District of New York seen by various media showed that Judge Margo Brodie explained that she is not likely to approve the agreement, noting the changes to it were inadequate.
Visa, Mastercard Had Agreed to Settlement in March
In the deal reached in March , the card companies agreed to lower fees they charge businesses to make credit card transactions. They also said they would not raise them until 2030. However, critics opposed the plan, among them the Merchants Payments Coalition (MPC), a group of businesses that advocates for a more competitive and transparent U.S. payments system. The MPC noted it welcomed the comments from the judge, and Christopher Jones, an executive committee member of the MPC, added that the “there was recognition of the fatal flaws that would have made the settlement a bad deal for Main Street rather than a correction of credit card industry violations of the antitrust laws .” If the judge does reject the settlement, the case would then go to trial, and Brodie reportedly agreed that should happen. Neither company responded to Investopedia requests for comment, but Mastercard told The Wall Street Journal it “will pursue our options to ensure a proper resolution of this matter,” while Visa told the newspaper it continues “to believe that the proposed settlement agreement was the appropriate resolution resulting from lengthy and thoughtful discussions with the merchant class.” Shares of Visa and Mastercard were both down less than 1% as of 11:30 a.m. ET Friday.

Key Takeaways
SAP announced it is buying digital adoption platform provider WalkMe for $1.5 billion in a deal set to boost SAP’s artificial intelligence offerings. The agreement prices WalkMe shares at $14 each, a 45.2% premium over their closing price Tuesday. SAP said adding WalkMe technology complements its Business Transformation Management portfolio. German business software developer SAP ( SAP ) agreed to buy digital adoption platform provider WalkMe ( WKME ) for $1.5 billion in cash, in a deal set to boost SAP’s artificial intelligence (AI) offerings. SAP announced Wednesday that the agreement would pay WalkMe investors $14 per share, a 45.2% premium to WalkMe’s closing price Tuesday. WalkMe shares skyrocketed in intraday trading Wednesday, almost reaching the offer price level after the announcement.
How WalkMe Will Add to SAP Offerings
Tel Aviv-based WalkMe helps organizations manage workflows across a number of applications. SAP noted that its technology “complements SAP’s Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers.” SAP acquired Signavio in 2021, and LeanIX last September. CEO Christian Klein said that with the purchase, SAP is “doubling down on the support we provide our end users , helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.” The transaction is expected to close in the third quarter. WalkMe shares soared over 42% in intraday trading Wednesday to $13.78 as of 3:30 p.m. ET, their highest level since 2022. American depositary receipts (ADRs) of SAP gained as well, rising 2% to $187.89.

Key Takeaways
The S&P 500 closed 0.1% higher on Monday, June 3, 2024, shaking off a report that showed a contraction in the U.S. manufacturing sector. Shares of electric utility Vistra slumped amid concerns that plans to bolster the Texas power grid could lead to oversupply. Paramount Global shares soared after reports that the entertainment giant has agreed to an updated acquisition offer from Skydance Media. Major U.S. equities indexes were mixed to open the trading week as the latest Purchasing Managers Index (PMI) report showed a decline in U.S. manufacturing activity in May. More economic data is on tap later in the week . The May jobs report set to be released on Friday will provide a key gauge of the labor market that could influence Federal Reserve officials heading into next week’s policy meeting. After trading in negative territory for much of the day, the S&P 500 ticked higher in the afternoon to end the session 0.1% higher. The Nasdaq received a boost from Nvidia ( NVDA ) and the tech sector, posting gains of 0.6%. The Dow was down 0.3%. Shares of Paramount Global ( PARA ) notched the top performance among S&P 500 stocks on Monday, jumping 7.5% following reports that the entertainment giant has agreed to an updated buyout offer from production company Skydance Media. Skydance, in coordination with private equity firms RedBird Capital and KKR, will reportedly buy around half of Paramount’s Class B shares at $15 apiece, which would equate to a premium of 26% on the stock’s closing price from last Friday. Carnival Corp. ( CCL ) shares added 6.2% following stories published by The Motley Fool and Seeking Alpha highlighting how the cruise line operator appears to have moved past the disruptions caused by the COVID pandemic. Customer deposits, which represent initial payments for future cruises, grew year over year in the first quarter, while Carnival could generate higher revenue through increased capacity, including three new ships set to be launched in 2024. Nvidia shares were up 4.9% after the semiconductor manufacturer unveiled its next-generation artificial intelligence (AI) system . The company said it will release the new platform, known as Rubin, in 2026. Bank of America analysts boosted their price target on Nvidia stock following the announcement. Autodesk ( ADSK ) shares gained 4.6% after the provider of engineering and product design software provided a positive update on an internal investigation into its accounting practices. The firm announced there will be no restatements or adjustments to its previously reported financial statements as a result of the probe. Shares of Tractor Supply Co. ( TSCO ), which supplies products for farmers and ranchers, dropped 6.2%, marking the S&P 500’s weakest daily performance. Although Tractor Supply recently opened a high-tech distribution center in Arkansas powered by autonomous mobile robots, its logistics and supply chains remain complex, and the retail sector where the company operates is highly competitive. Vistra ( VST ) shares slipped 5.9%, extending heavy losses posted last Friday after the utility announced plans to shore up the Texas power grid with 2 gigawatts (GW) of dispatchable capacity powered by natural gas. According to reports, investors are concerned the additional capacity could lead to oversupply issues. Crude oil prices tumbled amid concerns about economic growth following the worse-than-expected manufacturing data. The price drop put pressure on a variety of oil and gas stocks. Shares of oilfield service giant Halliburton ( ) were down 5.3%, while shares of exploration and production company Diamondback Energy ( FANG ) fell 4.3%.

After Dell Technologies ( DELL ) reported fiscal first-quarter revenue and earnings that beat analysts’ estimates, executives joined the company’s earnings call to discuss Dell’s guidance, margins, artificial intelligence (AI) server backlog, and AI opportunities.
Full-Year Outlook Raised, Q2 Guidance Tops Analysts’ Estimates
On the call, Dell provided guidance for the second quarter, the full 2025 fiscal year, and the infrastructure solution group (ISG) segment. CFO Yvonne McGill said Dell expects second-quarter revenue to be between $23.5 billion and $24.5 billion, slightly above analysts’ estimates compiled by Visible Alpha. McGill also told investors that Dell raised its full-year outlook to between $93.5 billion and $97.5 billion, up from the range of $91 billion to $95 billion provided the quarter prior. Consensus estimates put full-year revenue expectations at $94.07 billion. The CFO said Dell expects its ISG business to grow “in excess of 20% fueled by AI,” consistent with analysts’ projections.
AI Server Backlog Is ‘Nvidia-Based’
When asked about Dell’s AI server backlog, Dell COO Jeff Clarke said “[looking] at the composition of our backlog, it’s primarily Nvidia-based.” He said that while H100 availability is better, H200 supply is expected to improve in the second half of the year while B200, Nvidia’s Blackwell server, is now in production. Nvidia’s supply has been unable to keep up with surging demand amid the AI era, and analysts have indicated the already high demand for the chipmaker’s new products likely means Blackwell is sold out into 2025 as Hopper supply improves. Clarke said Dell’s AI server backlog includes enterprise customers as well as some large cloud service providers.
Dell ‘Can Do Better’ in Margins
Clarke told investors “We can do better in both our traditional servers and our storage products in terms of margins.” Dell reported that its gross margin declined 4% from the year-ago period, with McGill citing “a more competitive pricing environment and a higher AI optimized server mix.” The CFO said that the decrease in gross margins drove a decline in operating income, which fell 14%. She also noted that the first quarter is typically the weakest in terms of profitability for the ISG segment, and suggested the company expects to see operating margins expand in its ISG business as the year progresses, driven by enterprise customer spending rebound and scaling opportunities.
AI Opportunities and Partnerships
Dell executives reassured investors that the company could be well-positioned to gain as enterprise customers integrate AI, with Clarke saying Dell is “uniquely positioned to help customers with artificial intelligence,” and noting that “strong AI momentum continues.” Dell’s AI-optimized server orders increased to $2.6 billion in the quarter, compared to $800 million in the final quarter of fiscal 2024. Clarke also highlighted Dell’s “open ecosystem of partners” including Nvidia, Meta Platforms ( META ), Microsoft ( MSFT ), and Hugging Face. Nvidia CEO Jensen Huang called out Dell during the chipmaker’s earnings call last week as an important partner. Dell shares were down 18.2% at $139 in extended trading Thursday following the company’s earnings call.

Key Takeaways
Nordstrom reported a wider-than-expected loss for the first quarter but beat analysts’ estimates for revenue as sales at its off-price Nordstrom Rack stores surged. Nordstrom Rack sales jumped 13.8% from the year-ago period, with comparable store sales rising 7.9%. Shares of Nordstrom fell before turning higher in early trading Friday following the news. Nordstrom ( JWN ) reported a wider-than-expected loss for the first quarter but beat analysts’ estimates for revenue as sales at its off-price Nordstrom Rack stores jumped. Shares of Nordstrom initially fell before turning higher in early trading Friday. Nordstrom posted a first-quarter loss of $39 million or 24 cents per share, narrowing from a loss of $205 million or $1.27 per share in the year-ago period, but wider than analysts anticipated. Revenue grew 4.8% from a year ago to $3.34 billion, beating forecasts.
Double-Digit Jump in Nordstrom Rack
Sales Sales at its off-price Nordstrom Rack stores jumped 13.8% to $1.18 billion. For Nordstrom’s banner stores, sales were up 0.6% to $2.04 billion. The company noted that net sales were negatively impacted by its moves to wind down its Canadian operations. Comparable store sales rose 3.8%, led by a 7.9% gain for Rack stores. Nordstrom comparable store sales were 1.8% higher. Nordstrom noted sales of active wear as well as children’s and women’s apparel increased by double-digit percentages compared to the same period a year earlier, and beauty product sales were up by a high-single-digit percent. CEO Erik Nordstrom said while profitability fell short of expectations, the company was pleased with its sales growth, especially “the progress our Rack banner is making.” Nordstrom shares were up 4.3% at $21.93 as of 11:20 a.m. ET Friday. They’ve gained over 18% since the start of the year. TradingView

Key Takeaways
In a Federal Reserve report, businesses all over the country said they were having difficulty raising prices because of pushback by customers whose budgets have been strained by years of high inflation. One restaurant owner in Montana predicted customers would balk at paying $20 for a hamburger. The phenomenon was widespread across the Federal Reserve districts in the Beige Book, which collects reports from all over the country. U.S. consumers have a message for businesses, and it rang out loud and clear in a Federal Reserve report Wednesday: they are not going to pay $20 for a hamburger. The Fed’s Beige Book, a compilation of anecdotal reports from regional Fed banks around the country, was shot through with observations that shoppers everywhere are fed up with high prices, leaving many businesses reluctant to raise them. Those feelings were summed up by a Montana business owner who told the Minneapolis Fed he was trying to avoid passing further cost increases to his customers. “At some point, they will say, ‘I am not paying $20 for a hamburger,’” the report quoted the owner as saying. The report provided a striking example of how household budgets, already stretched by high inflation since 2021, are reaching their limit for how much they’re willing to spend on things. Customer pushback is leading merchants to offer discounts in hopes of winning back or retaining patrons. For example, fast food restaurants including McDonald’s and Burger King, have begun offering “value meal” promotions .
Consumers Across the Country Are Fed Up With Price Increases
The Beige Book suggested the phenomenon is widespread. “Contacts in most Districts noted consumers pushed back against additional price increases, which led to smaller profit margins as input prices rose on average,” the report said. “Retail contacts reported offering discounts to entice customers.” The Boston Fed said businesses in that district were planning for ”muted price growth on balance moving forward, as there was concern about consumer pushback from significant further price increases.” The Cleveland Fed noted, “One business services contact said that passing along cost increases had become more difficult as customers were more closely managing their costs.” In Atlanta: “Some firms reported holding prices steady in response to increasingly price-sensitive consumers.” And in the Dallas district, it was manufacturers facing customer rebellions over price: “Contacts noted that they were experiencing a strong resistance to price increases, with one saying that customers ask to hold prices to last year’s level, which isn’t possible given the increases in costs.”

Key Takeaways
Shares of sports-betting companies like DraftKings and FanDuel parent Flutter Entertainment are falling Tuesday. Markets are reacting to a state budget passed by the Illinois Senate Sunday night, which included a new progressive tax rate up to 40% on sports-betting companies. DraftKings, FanDuel, and other sports-betting companies have said higher tax rates will lead to worse odds and fewer promotions for customers. Sports-betting stocks like DraftKings ( DKNG ) and FanDuel parent Flutter Entertainment ( FLUT ) are sliding Tuesday following the Illinois Senate passage of a new state budget that includes a new progressive tax rate on such firms. The bill was passed late Sunday night, per the Chicago Sun-Times, and with markets closed for Memorial Day, Tuesday was the first chance for investors to react to the news. The tax was passed as an amendment to HB4951, which the Senate approved Sunday night, and the state House will likely vote on when its session resumes Tuesday.
New Budget Introduces New Tax Scale for Sports-Betting Companies
Under the new proposal, sports-betting companies would be hit with a progressive tax rate from 20% to 40%, depending on the dollar amount of bets they handle, which would affect the largest players like DraftKings and FanDuel the most. Sports-betting companies have paid a 15% tax since it became legal in 2021. The betting companies have not commented publicly on the legislation, but the website for the Sports Betting Alliance, which represents DraftKings, FanDuel, BetMGM ( MGM ), and Fanatics Sportsbook has a “No Tax Hike Illinois” banner advertising its arguments against raising the tax rate and urging Illinois residents to contact their legislators. In conversations with Illinois legislators, sports-betting lobbyists reportedly floated the idea that the biggest operators like DraftKings and FanDuel could leave Illinois as a result of the tax.
Progressive Scale Would Give Illinois One of Highest Sports-Betting Tax Rates
If the amended bill passes the Illinois House this week and is signed by Gov. J.B. Pritzker, the 40% top end of the scale would give Illinois one of the highest sports-betting taxes in the country, behind just New York, which taxes betting companies at 51%. However, a number of other states have raised or considered raising taxes in recent months as sports betting has become legal in most states, with revenue for the gaming companies surging as their market continues to expand. Along with Illinois, states like Ohio and Colorado have considered raising taxes on the gaming companies in recent months, according to The Washington Post. The sportsbooks have said they are paying their fair share under current tax rates, and have argued that raising taxes would mean they have to offer worse odds and fewer promotions for consumers. DraftKings shares were down more than 12% as of 11:23 a.m. ET Tuesday to $35.76, their lowest level since mid-January. FanDuel parent Flutter’s stock fell nearly 7% to $190.24 but is still up about 6% this year.

Key Takeaways
Nvidia shares surged after the chipmaker reported better-than-expected earnings, leading several analysts to raise their price objectives for the stock. Analysts at UBS, Bank of America, Citi, Jefferies, JPMorgan, Wedbush, Melius Research, Bernstein, and Mizuho all lifted their price targets after Nvidia’s earnings release. Melius Research analysts wrote they “can’t help feeling Nvidia left a lot of gas in their tank to beat and raise from here,” with Bernstein reportedly suggesting Nvidia is “likely nowhere near its peak.” Nvidia ( NVDA )?shares surged after the chipmaker’s better-than-expected earnings , but analysts indicated the chipmaker’s stock may still have a ways to go before reaching its peak. Nvidia shares were up 11% at $1,053.97 as of 1 p.m. ET Thursday. They’ve more than doubled in value since the start of the year, significantly outpacing gains for the S&P 500 and the Nasdaq 100 , which have climbed close to 12% over the same period.
Analysts’ New Price Targets
Analysts at UBS, Bank ofAmerica, Citi, Jefferies, JPMorgan, Wedbush, Melius Research, Bernstein, and Mizuho all lifted their price targets for Nvidia after the chipmaker’s earnings release. Bank of America and Jefferies were among those with the highest new targets, at $1,320 and $1,350, respectively. Bernstein followed with $1,300, up from $1,000 previously. Citi increased its objective to $1,260 from $1,030, while Melius Research lifted its to $1,250 from $1,125, and UBS raised its target to $1,200 from $1,150. Wedbush also raised its target to $1,200, up from $1,000. On the lower end, Mizuho’s objective increased to $1,180 from $1,000, while JPMorgan lifted its target to $1,150 from $850.
‘A Lot of Gas Left in This AI Tank’
Analysts at Melius Research wrote that they “can’t help feeling Nvidia left a lot of gas in their tank to beat and raise from here.” The analysts cited Blackwell-driven revenue, strong demand for H200 and Blackwell, an anticipated “positive mix shift to more richly configured systems with Blackwell,” and revenue from sovereign AI initiatives. Melius also noted that the chipmaker is likely “still in the very early innings of becoming multi-billion dollar businesses within 2 years” in its networking and software segments. Wedbush analysts wrote that “NVDA [is] seemingly hitting the ‘fast forward’ button,” adding that they “see no reason to moderate [Wedbush’s] enthusiasm around NVDA.” Bernstein analysts reportedly said that the stock is “relatively inexpensive (~35x on forward earnings that are going up again today) with a narrative that is clearly nowhere near its end.” The analysts wrote that the company is “likely nowhere near its peak.”

UPDATE: This article has been updated with a photo from the DOJ news conference, the latest stock price information and a stock price chart.
Key Takeaways
The U.S. Department of Justice on Thursday announced an antitrust lawsuit against Ticketmaster parent Live Nation Entertainment. The DOJ accuses Live Nation of threatening and retaliating against venues and artists for choosing ticket providers other than its subsidiary Ticketmaster. To remedy the situation, the DOJ is seeking to break up Live Nation Entertainment. Live Nation has repeatedly denied allegations that it has monopoly power, saying Ticketmaster’s fees are no higher than other ticket sellers. Shares were down 8% in mid-afternoon trading as investors reacted to the lawsuit. Ticketmaster parent Live Nation Entertainment’s ( LYV ) stock moved sharply lower Thursday as the U.S. Department of Justice announced an antitrust suit against the ticketing and concert giant, as it seeks to break up the company. The DOJ, along with attorneys general from 29 states and the District of Columbia, filed the suit against Live Nation on Thursday, accusing the company of using anticompetitive tactics to exert control over the live event industry. “We allege that Live Nation relies on unlawful, anticompetitive conduct to exercise its monopolistic control over the live events industry in the United States at the cost of fans, artists, smaller promoters, and venue operators,” U.S. Attorney General Merrick Garland said. “The result is that fans pay more in fees, artists have fewer opportunities to play concerts, smaller promoters get squeezed out, and venues have fewer real choices for ticketing services. It is time to break up Live Nation-Ticketmaster,” Garland added. Shares of Live Nation Entertainment were down 8.0% at $93.30 at around 2:00 p.m. ET Thursday. The stock had already lost ground after Bloomberg reported late Wednesday that a lawsuit was imminent, and shares had previously tumbled last month when The Wall Street Journal reported that the lawsuit was being prepared.TradingView
DOJ Says Live Nation Uses Its Power to Hurt Venues, Artists, Consumers
The government alleges that Live Nation uses its control over venues across the country to influence artists to perform at those it has a relationship with, along with intimidating venues and artists from choosing a ticketing and promotional service other than Ticketmaster. The company’s dominant position in the industry allows Ticketmaster and Live Nation to charge excessively high prices and tack on a number of fees that make tickets prohibitively expensive for many consumers, the DOJ alleges. To remedy the situation, the DOJ is seeking to break up Live Nation Entertainment, which consists of Live Nation as the venue operator and show promoter, along with Ticketmaster, which sells tickets. The DOJ approved a merger of the two companies in 2010 on several conditions, including that Live Nation would not retaliate against venues and artists for choosing ticket sellers other than Ticketmaster, a condition it said in the complaint that Live Nation has violated.
Live Nation Denies Claims, Says Low Margins Prove It’s Not a Monopoly
Live Nation has repeatedly denied that it operates as a monopoly or retaliates against or threatens venues, artists, or other smaller event promoters. In a lengthy response to the DOJ’s suit published Thursday, Live Nation said the DOJ is attempting to paint Ticketmaster as the sole reason ticket prices are high, when it says there are many more factors. The company said Ticketmaster’s 5% commission rate is one of the lowest across any digital marketplace, pointing to higher fees from companies like Uber ( UBER ), Stubhub, and Apple’s ( AAPL ) App Store as evidence that it does not fit the definition of a monopoly that benefits from monopolistic prices. Live Nation also referenced its relatively low profitability, especially compared to other tech giants the Biden administration has targeted in its antitrust push, including Meta Platforms ( META ), Apple , and Google parent Alphabet ( GOOGL ). “Critically, Live Nation can offer and has offered fans, artists, venues and the rest of the performance ecosystem better prices and better services than they would receive if these complementary businesses were separated,” the company said.?“Ticketmaster in particular is a far better, more artist- and fan-focused business under Live Nation’s ownership than it ever was as a standalone company.”