Sectors: Technology
We seem to be approaching a cross road where interest rates may being to drop in US and potentially rise in AU? How would this effect technical stocks in AU? Noting that falling interest rates is usually beneficial to cyclic and consumer stocks, and not to high growth tech stocks? In my portfolio I have a large allocation towards technical and health stocks. So my question is, should I be looking at reducing my exposure in this sector or hold due to potential interest rate increase/s in AU? Some of my tech stocks have achieved good gains in the last 12 months (i.e. key stock holdings…ASX: 360, AD8, ALU, DDR, MP1, NDX, PME, WTC, XRO; US: GOOGL META, MSFT, NFLX, TTD).
Thanks in advance.
Tesla’s stock plunged 12.3% overnight after it reported mixed Q2 results. These included a delay in the robotaxi launch and increased spending on new technology, which affected its operating margins. The company’s margins remain under pressure due to rising costs, including developing its AI infrastructure to turn Tesla’s EVs into autonomous cars.
Crowdstrike brought the world to its knees last week, with many people asking who the company is! The global IT outage affected companies ranging from banks to airlines. It was caused by a $US74bn Texas-based cybersecurity firm that issued a bad software update, leading Windows to crash due to a fault in how CRWD’s software update interacted with the globally utilised software.
What is your thinking on the short selling on this stock – does that keep happening, or will it settle down? With this happening, do you recommend selling?
Artificial Intelligence (AI) goliath Nvidia (NVDA US) has become arguably the most influential stock on the US and Global bourses. However, its 17% pullback has primarily been part of a period of sector rotation, with the major indices still within striking distance of their all-time highs. Previously, we’ve described NVDA as a stock where we would look to “buy the dip.” This is precisely what’s unfolding and it certainly feels scary enough to be approaching a panic low.
Yesterday, Morgan Stanley upgraded CAR, just a few days after Goldman. The stock surged early on Tuesday before encountering profit-taking as the market drifted lower, but it still closed up in a relatively weak market.
Codan has risen substantially. At $12 is well in excess of its fair value of $10.54, but it still seems to have momentum.
We like the online accounting business XRO, which has resided in our Growth Portfolio since mid-2020, but high-valuation stocks do come in and out of fashion, leading to significant ups and downs in their respective share prices.
AI goliath NVDA is arguably the most influential stock on US and Global bourses as we head through 2024. After a sharp ~16% pullback in late June, the $US3.33 trillion giant is gathering steam as it heads back towards new highs—as we’ve said previously, this is definitely a stock we would put in the “buy the dip” basket.
