Here are the takeaways from today’s morning briefing, you can Sign up Receive in your inbox every morning:
Welcome to silly season in the market.
I define it loosely silly season Just days before a major holiday, when the market is saturated with holiday spirit (aka low volume), small moves in stocks can seem like a big deal… but that’s usually not the case. A news story sticks in the headlines (for you younger investors, that’s the main story on page one of the newspaper or at the top of your website), just like it can move a stock or stock for the next year.
99.99% of the time this is not the case and it usually ends badly for investors.
Now is the time to be extra skeptical of anything being played up as a new market narrative or a big deal for markets (good or bad). Challenge everything that’s thrown at you!
But also use these precious moments before Thanksgiving to do your due diligence on companies you might not even have considered for potential acquisitions.
This year I will be doing research by offering two names for early gifts. However, please note two things.
One, these are not stock picks. I don’t do it anymore; I did it in a previous life.These are just guideSecond, both companies have essentially been through trouble over the past two years.This has led them to be called potential stocks on Wall Street A turnaround story.
Good luck and happy investing!
The chip giant has endured a tumultuous period highlighted by a loss of server market share to AMD, a costly shift in strategy to making chips for other companies, major investments to regain chip leadership and a post-COVID-19 personal Declining demand for computers.
However, several aspects of the Intel story have caught my attention recently.
The first is price action. Intel’s shares are up 64% so far this year, outpacing the Nasdaq’s heady 35% gain. Although Intel’s revenue and profits continue to face pressure. To me, Mr. Market is positioned ahead of the Nasdaq Composite. Performance rebounds in 2024.
This brings me to my second point.
Intel’s product line is expected to improve significantly next year as investments start to pay off. The onset of AI-focused computer sales will also be important for profits in 2024 and beyond. Last week’s upgrade from Mizuho on these factors was one of the first of its kind I’ve seen from Intel in months.
That’s in line with Intel CEO Pat Gelsinger’s optimistic tone When we talked a few weeks ago (Video above) — Kissinger calls out Intel’s brewing comeback.
His positive change in tone during our interview compared to our previous conversations was impressive.
What’s the next catalyst for Intel stock, you ask? Get ready for positive developments at an AI-related event in New York City in mid-December.
Full stop: In 2012, when I was an analyst, I said Gap was “dead” I’ve been true to that ever since Report There are many challenges facing the company. Terrible product. A revolving door of leadership. Poor execution. No responsibility is accepted for poor results. so terrible. so terrible. so terrible. I just want to walk into a Gap store and leave knowing that a medium shirt doesn’t fit like a large.
or Don’t walk into Banana Republic and find a shirt that originally cost $50 is on sale for twice that price. Hey, why on earth can’t going to Athleta be as amazing an experience as Lululemon?
I’m not going to sit here today and say that 2024 is going to be smooth sailing for a company like Gap that has been facing challenges over the past decade. In addition to operational considerations, the economic backdrop means apparel retailers may face sales pressure next year. This was reflected in Gap’s latest earnings report released last week.
But I will say this: Don’t underestimate the power a leader has in a company hungry for great leaders.In this case, that leader is the new Gap CEO Richard Dixon.I first met him through Dixon (who was appointed to the top job in July) The Epic Transformation of Mattel’s Barbie CollectionI spent some time with him a few weeks ago at Gap’s New York headquarters.
I was impressed by how deeply he thought about performance improvement—even down to the first thing you see when you open the Gap homepage.
Dickson has a lot of work to do to fix the Gap. I expect more store closings and management changes.But this is arguably the first Gap CEO since Mickey Drexler Who knows what they are doing and how to fulfill some form of promise. Expect to learn more about Dickson’s transformation plans by mid-2024, likely at an investor day.
Fun fact: Gap’s stock is up 59% year to date, and is up 30% just after earnings on Friday… partly due to Dickerson’s performance on the conference call.
Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozzi on Twitter @bryansozzi etc. LinkedIn. Tips on a deal, merger, activist situation, or something else? Please email firstname.lastname@example.org.