Podcast Summary
OPEC Plus production cuts: Unexpectedly detailed plan to unwind OPEC Plus production cuts makes it harder for members to maintain low production, potentially leading to market struggles and compliance issues
The decision by OPEC plus to phase out voluntary production cuts is bearish for the oil market, according to Goldman Sachs analysts. The unexpectedly detailed default plan to unwind these cuts makes it harder for members to maintain low production if the market softens, potentially leading to continued struggles for OPEC Plus to continue with full cuts into 2025. Additionally, some members, such as Iraq and the UAE, have already shown a lack of compliance with their production targets. In other news, Morgan Stanley's E*TRADE is reportedly considering booting popular investor Roaring Kitty from its platform due to concerns over potential stock manipulation in the meme stock GameStop. Among active stocks, Bath and Body Works beat fiscal Q1 expectations on both the top and bottom lines.
Financial outlooks and expectations: Companies update financial outlooks, Realty Income raises earnings and revenue guidance, SentinelOne upgraded despite trimmed 2025 guidance, Intel introduces new processors, AI development drives tech industry growth, Goldman Sachs adds and removes stocks from conviction list
Several companies have updated their financial outlooks and expectations for the future. Realty Income raised the midpoint of its earnings and revenue guidance for fiscal 2024, expecting net sales to range between a decline of 2.5% to flat. The REIT also increased its expected investment volume for the year to about $3 billion. SentinelOne was upgraded to a buy rating by Canaccord Genuity, despite the company trimming its 2025 guidance and lowering the price target. The analysts remain bullish on SentinelOne's long-term prospects as a data-driven security platform. Intel introduced new processors and AI chips, aiming to regain market share in the data center sector. Taiwan Semiconductor held discussions with customers about moving chip facilities off the island nation due to tensions with China, but such a move is impossible. AI development is expected to drive a recovery in the tech industry, with 10% growth forecasted for the chip market in 2024, excluding the memory sector. Goldman Sachs added five stocks to its conviction list, including Enphase, Sempra, Edwards Lifesciences, Teradyne, and Brixmor Property Group. Conversely, First Solar, Southern Company, Target, and Simon Property Group were removed from the list. Overall, these updates and developments reflect the ongoing dynamics and shifts in various industries and markets.
Goldman Sachs convictionless director's cut: Goldman Sachs provides a list of 20-25 stocks with buy recommendations, reflecting their confidence and serving as a useful resource for investors
Goldman Sachs has been offering a curated list of 20 to 25 stocks with buy recommendations for a year now, under the name of "convictionless director's cut." Five new additions to this list have been recently announced, which you can read more about in our analysis on Seeking Alpha. This list is a reflection of Goldman's confidence in these particular stocks, and it serves as a useful resource for investors looking for guidance on potential buys. Keep in mind that these episodes will be available with transcriptions at seekingalpha.com/wsp, and joining the Seeking Alpha community can provide you with valuable insights and discussions on any stock or ETF.