All articles tagged with #consumer market
Dell reported strong AI order backlog exceeding $12 billion, highlighting growth in AI-optimized servers, despite challenges in the consumer market and softer demand for traditional servers and PCs. The company's earnings missed expectations slightly, but revenue beat estimates, with positive outlooks from analysts on AI server revenue potential. The consumer segment remains challenged amid a dynamic macroeconomic environment.
Despite recent market volatility, the US consumer market remains resilient, with strong job growth and low unemployment. Analysts recommend sticking with consumer winners from last year, such as Lululemon, Abercrombie & Fitch, and Costco, which are expected to benefit from market share gains and economic tailwinds. While some challenges exist, including demographic-specific headwinds, the overall consumer outlook is positive, making consumer-focused stocks attractive for investors in 2024.
McDonald's is defying the trend of multinational corporations reducing investments in China by taking greater control of its China business and expanding aggressively. The company recently repurchased a stake in its China business, giving it a 48% share in operations worth $6 billion. McDonald's is benefiting from its partnership with CITIC, a powerful Chinese state-owned conglomerate, which provides political cover. Other US firms, including Starbucks, Apple, Coach owner Tapestry, and Nike, are also dedicated to the China market. McDonald's aims to have over 10,000 stores in China by 2028, capitalizing on the country's growing limited-service restaurant sector. However, worsening geopolitical tensions could lead to divestment by companies in China.
Kyocera has announced its withdrawal from the consumer smartphone market due to an inability to make a profit, but will continue to focus on corporate phones. The company's President cited the high costs of 5G technology as a factor in the decision. Kyocera will still support some of its consumer models used by corporate customers.