All articles tagged with #valuation concerns
Wall Street remains cautious on AI stocks like Palantir and Super Micro Computer due to high valuations and recent earnings, while showing optimism for AMD driven by strong demand for AI-related data center products and strategic deals, with analysts highlighting growth prospects despite valuation worries.
US stock futures declined as key AI stocks fell due to concerns over their high valuations, reflecting cautious investor sentiment in the tech sector.
Asian stocks declined sharply due to fears of overstretched valuations following a tech-led selloff on Wall Street, with Japan and South Korea experiencing significant drops, while concerns about the sustainability of the recent rally grow among investors and CEOs.
Bloom Energy's stock dropped 15% after Jefferies downgraded it to Underperform with a $31 target, indicating a 64% potential decline from recent levels, citing valuation concerns amid a year of significant gains and contrasting optimism from Morgan Stanley.
This week in the markets, investors will focus on Fed Chair Powell's speech for insights into future policy, monitor technical signals in high-flying stocks like IonQ and Alibaba for potential corrections, assess Micron's earnings for semiconductor demand, and review retail and housing data to gauge consumer resilience, all amid a backdrop of valuation concerns and economic indicators influencing sector rotations.
Rivian's stock has surged 66% in the past month, prompting Cantor Fitzgerald analyst Andres Sheppard to downgrade the shares to neutral from overweight due to concerns about valuation. Despite raising his price target and revenue estimates for the company, Sheppard believes the stock is now properly valued and is adopting a more conservative stance. He will be closely monitoring Rivian's second-quarter earnings report for insights on average selling prices, gross margins, cost savings, and the company's relationship with Amazon, which remains its largest shareholder.