MONEY MASTER

Tesla (TSLA) stock continues to face downward pressure as  investor concerns over DOGE (Department of Government Efficiency)  keep overshadowing the company’s AI-driven growth potential. Tesla’s Latest Stock Performance Pre-market trading:  Down  2.4%  to  $256.37 March 10 Close:   $262.67  (-0.30%) Decline since Feb. 20:   26% Investor Sentiment:  Markets are hoping for stability, but  political uncertainty surrounding DOGE is adding new risks to Tesla’s outlook. DOGE vs. AI: What’s Driving Tesla’s Market Turbulence? DOGE Backlash Creates Investor Uncertainty Tesla CEO  Elon Musk’s involvement with President Donald Trump’s DOGE initiative  has sparked protests and controversy. Google searches for "DOGE"  surpassed  searches for "Tesla" on  Feb. 20 , signaling increased public focus on the government initiative. Wedbush Remains Bullish on Tesla’s AI Future Analyst Dan Ives maintains a Buy rating  with a...

  Key Highlights: Revenue Growth: Walt Disney Co (NYSE) reported fiscal third-quarter 2024 revenue growth of 4% year-over-year to $23.16 billion, slightly surpassing the analyst consensus estimate of $23.11 billion. Earnings Per Share (EPS): Adjusted EPS of $1.39 beat the analyst consensus estimate of $1.20. Segment Performance: Entertainment: Revenue increased by 4% year-over-year to $10.58 billion, driven by subscription revenue growth from price increases and customer growth for Disney+ Core. Sports: Revenue grew 5% year-over-year to $4.56 billion. Experiences: Revenue climbed 2% year-over-year to $8.39 billion. Entertainment Breakdown: Linear Networks: Revenue declined by 7% year-over-year to $2.66 billion. Direct-to-Consumer (DTC): Revenue increased by 15% year-over-year to $5.81 billion. Content Sales/Licensing and Other: Revenue declined by 4% year-over-year to $2.11 billion. Operating Income: Consolidated operating income grew by 19% year-over-year to $4.23 billion,...

Intel Corp has announced significant changes as it faces financial difficulties and competition in the rapidly growing AI market. The company revealed plans to cut over 15,000 jobs and suspended dividend payments, alongside a disappointing revenue forecast for the third quarter. This announcement comes amid a decline in Intel’s business, with shares dropping over 18% in late trading following the news. Key Financial Projections and Results Third-Quarter Revenue Forecast: Intel expects sales to be between US$12.5 billion (RM56.96 billion) and US$13.5 billion , falling short of analyst expectations of US$14.38 billion . Expected Loss: The company predicts a loss of three cents per share, excluding certain items, against expectations of a profit of 30 cents per share. Second-Quarter Results: Intel reported a profit of two cents per share, excluding certain items, on revenue of US$12.8 billion , slightly below analyst estimates of US$12.95 billion . Revenue Decline: Overall sales are p...

Qualcomm projected higher-than-expected fourth-quarter revenue, driven by strong demand for high-end Android devices and AI-enhanced smartphones. However, the chipmaker warned of a revenue hit due to the US revoking an export license for Huawei, impacting shares. Key Points: Revenue Forecast: Qualcomm predicts fourth-quarter revenue with a midpoint of US$9.9 billion, surpassing Wall Street's estimate of US$9.71 billion. AI Enhancements: The integration of AI features in smartphones has boosted demand for Qualcomm's chips, aiding revenue recovery after a prolonged industry slump. Impact of Trade Curbs: The US revocation of an export license for Huawei will affect current quarter and first-quarter 2025 revenues. Qualcomm is negotiating with Huawei but does not expect chip revenue from the company beyond 2024. Stock Movement: Qualcomm shares initially rose over 5% in extended trading but later fell by more than 1% after the trade curbs warning. Arm Holdings also saw a 13% drop...

Nvidia Corp experienced an unprecedented increase in market value, adding US$329 billion in a single day, setting a new record for the third-most-valuable company globally. This 13% rally follows a 7% drop that wiped out over US$193 billion, continuing a trend of high volatility. Key Points: Market Value: Nvidia's market capitalization now stands at US$2.9 trillion. Volatility: In July alone, Nvidia experienced four of the eight largest market cap declines, driven by shifts in investor sentiment. Sector Rotation: Investors have been moving funds from high-growth tech stocks to companies that would benefit from potential Federal Reserve rate cuts. AI Investments: Nvidia's value surged with increasing interest in artificial intelligence (AI) investments, though some investors worry about the long-term return on these investments. Impact of Fed Policy: The anticipation of Federal Reserve rate cuts, possibly as soon as September, has influenced investor behavior, contributing ...

  McDonald's reported a surprising drop in global sales on Monday, marking its first decline in 13 quarters. The decline is attributed to consumers seeking lower-priced menu options and avoiding higher-priced items like the Big Mac amid persistent inflation. Key Takeaways: Sales Decline: Global comparable sales fell 1% in the second quarter, against expectations of a 0.5% increase. This is McDonald's first global sales drop in more than three years. Overall revenue, however, rose by 1%. Consumer Behavior: Inflation has led lower-income consumers to opt for more affordable food options at home. This shift has pressured fast-food chains to rely on value meals to attract customers. US Performance: US comparable sales fell 0.7% for the quarter ended June 30, compared to a 10.3% increase a year ago. The $5 meal deal launched in June performed above expectations and is set to continue into August. International Markets: Sales in international markets, which constitute nearly half...

Hewlett Packard Enterprise (HPE) is poised to receive unconditional European Union (EU) antitrust approval for its US$14 billion (RM64.90 billion) acquisition of networking gear maker Juniper Networks, according to sources familiar with the matter. Key Takeaways: Acquisition Details: HPE announced the US$14 billion deal in January, highlighting the drive by companies to enhance and develop new products amid a significant increase in AI-driven services. Regulatory Approval: The European Commission, which is set to decide on the deal by Aug 1, has not commented. HPE and Juniper have also not responded to requests for comment. Antitrust Considerations: HPE is expected to emphasize the market power of Juniper's rival Cisco to address any potential EU competition concerns. Additional Assessments: The deal is also under review by Britain's antitrust authority, with a decision expected by Aug 14. This approval will mark a significant step for HPE in strengthening its position in t...

  Apple Inc. has lost significant ground in China’s smartphone market in the June quarter, with local companies like Huawei Technologies Co. surging ahead. This marks the first time in four years that Apple has been squeezed out of the top five handset makers in the country. Key Points: Market Performance: iPhone shipments in China decreased by 3.1% during the June quarter. Android-powered competitors saw an 11% year-on-year rise in shipments. Apple’s drop in the rankings is attributed to a slowdown in sales amid a troubled Chinese economy and a resurgence of local competitors like Huawei. Research Insights: IDC reported the decline, noting discrepancies between government registration data and actual deliveries to retail partners. Canalys reported a 3.9% decline in iPhone shipments, while Counterpoint Research observed a 5.7% drop in sales to end users. April and May showed initial growth due to the 618 shopping festival, but profitability concerns among local partners led to a sl...

  Meta Platforms is set to receive its first EU antitrust fine for tying its classified advertisements service, Marketplace, with its Facebook social network, according to sources with direct knowledge of the matter. Key Takeaways: Imminent Fine : The European Commission will issue the fine more than a year and a half after accusing Meta of giving Marketplace an unfair advantage by bundling it with Facebook. Abuse of Dominance : The EU competition watchdog also accused Meta of abusing its dominance by imposing unfair trading conditions on competing online classified ads services that advertise on Facebook or Instagram. Potential Financial Penalty : Meta could face a fine of up to US$13.4 billion (RM62.5 billion), representing 10% of its 2023 global revenue, although EU fines are typically lower than the maximum cap. Timing of Decision : The Commission is likely to issue its decision in September or October before EU antitrust chief Margrethe Vestager leaves office in November, alth...

Investors seeking opportunities in the artificial intelligence (AI) sector are shifting their focus from Taiwan to South Korea. Asset managers such as Federated Hermes, M&G Investments, and Invesco Asset Management have turned 'underweight' on Taiwanese stocks and 'overweight' on South Korean shares, citing crowded positions and better valuations. Key Points for Investors: Shift in Investment Focus: Underweight Taiwan: Federated Hermes, M&G Investments, and Invesco Asset Management are reducing their positions in Taiwanese stocks. Overweight South Korea: These firms are increasing their exposure to South Korean shares, finding them more attractively valued. Valuation Comparison: TSMC vs. Samsung and SK Hynix: TSMC trades at 20 times forward earnings, while Samsung and SK Hynix trade at 11.4 times and 6.8 times forward earnings, respectively. Indices: The Taiex Index trades at nearly 18 times forward earnings, almost twice as expensive as the Kospi Index. AI ...

US stock markets showed mixed movements as investors eagerly awaited earnings reports from tech giants Alphabet and Tesla. These reports are crucial in assessing whether the recent market rally has further momentum. Key Market Movements: UPS and NXP Semiconductors Fall: United Parcel Service (UPS): Shares of UPS plummeted 12.4% due to disappointing earnings results caused by reduced package delivery demand and increased labor costs. This significant drop in UPS shares also impacted the Dow Jones Transport Average, pulling it down by 1.5%. NXP Semiconductors: The company's stock fell by 7.2% following a forecast of third-quarter revenue below estimates, affecting the Philadelphia SE Semiconductor index, which declined by 0.8%. Tech Sector in Focus: Alphabet and Tesla: Investors are closely watching the quarterly results from these tech giants. Alphabet's shares rose 0.5%, while Tesla's shares dropped 0.5%. Other Tech Stocks: Microsoft and Amazon showed positive movement,...

Tesla is expected to report its lowest quarterly margin in over five years, driven by discounts, price cuts, and incentives aimed at boosting electric vehicle (EV) sales. The company is anticipated to pivot towards its robotaxi plans and AI products to rejuvenate investor interest. Financial Performance: Q2 Margin: Analysts predict Tesla's automotive gross margin, excluding regulatory credits, to drop to 16.27%, its lowest since Q1 2019. Previous Margins: The margin was 16.36% in Q1 2024 and 18.14% in Q2 2023. Sales Strategy: Tesla's use of discounted financing amid high interest rates is considered a less visible price cut, spreading margin pressure over the loan's life. Strategic Shifts: Tesla is laying off 10% of its global workforce, reflecting strategic adjustments amid declining sales and aging model lineups. CEO Elon Musk is likely to emphasize the company's focus on self-driving technology and AI products, which are expected to distinguish Tesla from other au...