Hey Gotraders,
So yesterday we wrote about Microsoft (MSFT) taking the title of the world’s most valuable public-listed company away from Apple (AAPL).
Well, Deutsche Bank (DB) seems to think that Microsoft is going to be holding on to the title for a while!
“Microsoft is the gold standard of Software stocks with the widest and deepest competitive moats of any company we cover. Public cloud is a game of extreme scale and innovation, and is, therefore, an oligopoly market where Microsoft has a meaningful competitive advantage in terms of its balance sheet, worldwide installed base, distribution, and extensive product/IP portfolio” - Brad Zelnick, an analyst from Deutsche Bank.
Deutsche Bank also goes on to say that “Not only is Microsoft well-positioned relative to every leading theme in enterprise computing, but it is also in most cases leading the way and creating value in the combinatorial effects and integrated value proposition of delivering these capabilities to customers.”
Why is this important? Shares of Microsoft are up a whopping 51.30% year-to-date! They have easily outperformed the broader market and competitors by a long shot! Well done, guys!
Deutsche Bank initiated coverage of the software giant and gave them a “buy” rating, and set a price target of $395 per share, roughly a 20% upside from closing price of $329.37 yesterday.
📈 Coca-Cola’s largest ever brand acquisition 💰
Did you know that Coca-Cola (KO) had a 15% stake in sports drink maker Bodyarmor, making them the second-largest shareholder? Well, they were sooo happy with their investment in the company that they decided they wanted full ownership and control of it. So, that’s what they did. They went out and bought the remaining 85% for $5.6 billion, making it the company’s largest-ever brand acquisition to date! Wowza!
Buying Bodyarmor will help them to gain market share in the sports drink category which is currently dominated by PepsiCo’s (PEP) Gatorade.
Shares of Coca-Cola closed at $56.17, up 6.46% year-to-date, while shares of PepsiCo closed at $161.26, up 11.78% year-to-date.
📈 XPeng shares are up 🚗
Shares of electric vehicle manufacturer XPeng (XPEV) are up after the company announced that it exceeded 10K deliveries for the month of October. This is the second month in a row that they managed to exceed 10K deliveries per month.
It looks like they are managing the chip shortage well, and the impact has been “limited.”
Not sure if they have a secret stash of semiconductor chips laying around somewhere… or they’ve managed to source new suppliers… or maybe they’re manufacturing their own chips?! Hmm… 🤔
Shares of XPeng closed up 2.66% at $47.87.
Top movers & shakers 🎢
What else is making headline news 📰
British Petroleum (BP) posts $3.3 billion third-quarter profit, beating estimates as oil prices surge.
Amazon (AMZN) reveals 20% stake in electric-vehicle maker Rivian.
Apple (AAPL) says it competes with PlayStation, Xbox, and Nintendo in sign of gaming importance.
Chinese EV maker Nio’s (NIO) deliveries drop 65% as supply chain issues, manufacturing changes bite.
Jim Cramer’s 5 ‘borderline unstoppable’ investment themes for the rest of 2021.
Mark Zuckerberg says a new skin-like material could support metaverse ambitions.
Cramer’s lightning round: Own Facebook-parent Meta (FB) if you want metaverse exposure.
Popular companies releasing earnings this week 💰.
Tuesday: Tinder (MTCH), Ferrari (RACE), Pfizer (PFE), T-Mobile (TMUS), British Petroleum (BP), Cadbury (MDLZ), Herbalife (HLF), Estee Lauder (EL), Under Armour (UAA), Lyft (LYFT), ConocoPhillips (COP), Activision (ATVI), KKR (KKR), Prudential Financial (PRU), Marathon Petroleum (MPC), Polo Ralph Lauren (RL), Western Union (WU), and more..
Wednesday: Qualcomm (QCOM), CVS Health (CVS), Booking.com (BKNG), Marriott (MAR), Roku (ROKU), Electronic Arts (EA), Manulife (MFC), HubSpot (HUBS), Etsy (ETSY), Fox (FOX), Take-Two Interactive (TTWO), 10X Genomics (TXG), Marathon Oil (MRO), Hyatt (H), TuSimple (TSP), Michael Kors (CPRI), Fastly (FSLY), Vimeo (VMEO), and many more..
Thursday: Alibaba (BABA), Moderna (MRNA), Illumina (ILMN), Square (SQ), Airbnb (ABNB), Uber (UBER), Mercadolibre (MELI), Cloudflare (NET), Monster (MNST), Motorola (MSI), Pinterest (PINS), Peloton (PTON), Expedia (EXPE), ViacomCBS (VIAC), Kellogg's (K), DropBox (DBX), Novavax (NVAX), Wynn Resorts (WYNN), DigitalOcean (DOCN), Nikola (NKLA), and many more..
Friday: Berkshire Hathaway (BRK.B), Toyota (TM), Dish Network (DISH), DraftKings (DKNG), Pinnacle West Capital (PNW), Canopy Growth (CGC)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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