In a significant portfolio reshuffle, Coatue Management, led by billionaire investor Philippe Laffont (Trades, Portfolio), made notable changes to its investments in the technology sector. The hedge fund reduced its stakes in the "Magnificent 7" tech giants, including a 27.6% cut in Microsoft (MSFT, Financial), a 14.8% reduction in Amazon (AMZN, Financial), and a 13.8% decrease in Tesla (TSLA, Financial) shares. Additionally, Coatue trimmed its holdings in Nvidia (NVDA, Financial) and Netflix (NFLX, Financial), while also taking new positions in Palantir Technologies (PLTR, Financial) and Shopify (SHOP, Financial). These moves reflect a strategic shift in Coatue's investment approach as it adapts to changing market conditions.
Vertex Pharmaceuticals (VRTX, Financial) experienced a notable decline of approximately 4% following concerns raised by Leerink Partners over the design of a mid-stage trial for its non-opioid pain candidate, VX-548. The trial's design, which does not allow for statistical comparisons with the reference drug Lyrica, marketed by Viatris (VTRS, Financial), has sparked investor caution, leading to the stock's second consecutive session of losses.
Investors are closely watching Alibaba (BABA, Financial) as the Chinese e-commerce giant prepares to release its Q2 earnings results. With a consensus EPS estimate of $2.07 and revenue expectations of $30.85 billion, the market is anticipating the company's performance. Alibaba has a history of surpassing EPS estimates 88% of the time and has beaten revenue estimates 63% of the time, bolstering investor confidence in the stock.
Analysts have revised their Q4 earnings projections downward for companies like Pfizer (PFE, Financial) and Merck (MRK, Financial), with a notable 3.9% cut in October, more than double the 10-year average. This adjustment is primarily attributed to guidance cuts from these pharmaceutical companies, which have been significant contributors to the overall reduction in earnings forecasts.
Point Biopharma (PNT, Financial) saw its stock rise by 1.1% as it continues to trade above the $12.50 share price offered by Eli Lilly (LLY, Financial) in a tender offer set to expire soon. The acquisition by Eli Lilly, which recently received the final regulatory approval needed, is being closely monitored by investors.
Eli Lilly (LLY, Financial) is making a substantial investment in a new production plant in Germany, signaling a strong commitment to meeting the rising demand for GLP-1 receptor agonists, a new class of weight-loss drugs. This investment is expected to have a significant impact on the company's production capabilities and workforce.
UBS has highlighted 14 stocks, including Apple (AAPL, Financial), Boeing (BA, Financial), and Advanced Micro Devices (AMD, Financial), as its highest conviction tactical thematic stock ideas. These stocks are expected to benefit from various macroeconomic forces and policy changes over the next 6-to-24-month period.
HSBC's chief multi-asset strategist, Max Kettner, has expressed optimism about the equity market, citing a solid earnings reporting season. Despite concerns over high interest rates and inflation, Kettner believes that the strong performance of equities, particularly in the consumer discretionary (XLY) and tech (XLK) sectors, is a positive sign for investors.
RTX (RTX, Financial) announced that its Pratt & Whitney unit secured a sustainment contract worth up to $870M for TF33 engines, which power the B-52 Stratofortress and E-3 Sentry. This contract underscores the ongoing demand for maintenance and support services in the aerospace sector.
Tudor Investment, the hedge fund founded by Paul Tudor Jones (Trades, Portfolio), has made several adjustments to its portfolio, including new positions in Seagen (SGEN, Financial), AbbVie (ABBV, Financial), and Verisk Analytics (VRSK, Financial). The firm also increased its stakes in Nvidia (NVDA, Financial), Horizon Therapeutics (HZNP, Financial), Goldman Sachs (GS), and Chevron (CVX), while closing out or reducing positions in other companies.
Microsoft (MSFT, Financial) unveiled its first two in-house processors at its annual Ignite conference, signaling its intention to compete with semiconductor giants and reduce reliance on external suppliers. The Maia 100 chip, focused on AI workloads, and the Cobalt 100 chip, aimed at cloud computing, represent Microsoft's push into the hardware space.
The Federal Trade Commission has issued a warning to the American Beverage Association regarding the use of social media influencers to promote the safety of aspartame without proper disclosures. This action reflects the FTC's commitment to ensuring transparency in advertising and endorsements.
Albertsons (ACI) and Kroger (KR) are expected to file substantial compliance with the FTC's second request concerning their proposed merger. This filing is a critical step in the regulatory review process and will provide the FTC with additional time to assess the deal and the proposed divestiture package.
Meta Platforms (META) plans to appeal the European Commission's designation of its Messenger and Marketplace services as "gatekeepers" under the Digital Markets Act. While seeking clarification on specific legal points, Meta remains committed to complying with the act.
Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway (BRK.B) (BRK.A) exited its stakes in General Motors (GM) and Activision Blizzard (ATVI) during the third quarter. The conglomerate also divested smaller stakes in several other companies, while its largest holding, Apple (AAPL, Financial), remained unchanged.
Roblox (RBLX) saw its stock jump after providing financial guidance for the coming year, indicating a positive outlook for 2024 bookings and adjusted EBITDA. The company's forward-looking statements have generated investor interest in its growth trajectory.
Canadian Solar (CSIQ) faced a downgrade from J.P. Morgan due to weak Q4 guidance and potential downside risks associated with global module ASP declines. The company's recent disclosure of a Uyghur Forced Labor Prevention Act detainment adds uncertainty to its U.S. shipments.
ZIM Integrated (ZIM) reported a significant net loss for Q3, driven by a non-cash impairment loss and declining freight rates. The company has revised its full-year guidance downward, reflecting a negative outlook for freight rates in the near future.
