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You're reading the Businessweek Daily newsletter.
You're reading the Businessweek Daily newsletter.
Fresh perspectives on business, economics, politics and tech.
Fresh perspectives on business, economics, politics and tech.
Fresh perspectives on business, economics, politics and tech.
Today's the first Monday of a new quarter. If that has you looking at your investment portfolio, Bloomberg Businessweek has a list of stocks that might be worth watching over the coming months. Following our list of 50 Companies to Watch in January, we've compiled 10 names you should know -- for better or worse -- in the second quarter. Bloomberg Intelligence analysts have identified the most interesting companies from their group of high-confidence Focus Ideas. Spanning sectors and regions, each scenario outlines a catalyst in the next few months that supports our case. Here's a sample. -- Tim Craighead
Broadcom (Ticker: AVGO): Outlook ☀️
Adoption of custom artificial intelligence chips is increasing, and Broadcom's specialized "accelerator" semiconductors are far cheaper than rival offerings from Nvidia and AMD for specialized tasks such as customer service chatbots that answer repeated questions. The growing success of the company's XPU chips and networking gear for data centers should propel surprising sales growth in the next two years.
Trigger: In the second-quarter earnings report in June, updates on sales volumes of AI accelerator chips and networking gear, as well as details on its order backlogs, should validate the AI revenue surprise. -- Kunjan Sobhani
Ferrari (Ticker: RACE): Outlook ☀️
The much-anticipated F80 supercar, now starting deliveries, and the all-electric Luce, expected in May, are just two of 20 new models coming from the Italian automaker's stable in the next three years. Even though its average price has jumped 24% in the past five years, Ferrari remains sold out through 2027, which should turbocharge its profit margin beyond the consensus expectation.
Trigger: First-quarter results due in May should show increased deliveries of the F80, and the same month Ferrari will announce the price of the Luce, giving investors a better sense of potential demand. -- Michael Dean
Meituan (Ticker: 3690.HK): Outlook ☁️
China's largest food delivery company has more than 770 million users but faces increasing competition from Alibaba, Douyin and other AI-savvy businesses. That's especially true in "instashopping" -- which pledges a 30-minute delivery -- as well as in nonfood purchases such as travel and hotel bookings. Despite Meituan's pending acquisition of the DingDong grocery delivery business, its profits look set to disappoint as fees from transactions will be constrained.
Trigger: With rivals expected to reveal aggressive AI growth plans in May, Meituan's customer traffic and profits risk looking anemic. -- Catherine Lim
For the full data sheets and seven other companies to watch (DraftKings, anyone?), read on.
In Brief
- JPMorgan CEO Jamie Dimon said the US needs to "get stronger" to maintain its military and economic might and detailed his bank's plans to deploy more than $1 trillion to ensure that happens.
- A NASA crew of four astronauts will fly by the moon on Monday at the closest distance they will get to the lunar surface during their mission and the nearest any human has gotten to the moon in more than 50 years.
- San Francisco's median house price jumped to a record $2.15 million in March, up 18% from a year earlier as wealth generated by artificial intelligence startups flooded the city.
Crypto Losses
$14.5 billion
That's how much Bitcoin accumulator Strategy registered in unrealized loss in the first quarter as its cryptocurrency holdings fell in value. Bitcoin alone tumbled more than 20% in the three months, and Strategy held more than $50 billion of cryptocurrency at quarter-end.
Cut Off From Life Savings
"I don't understand how any of that is fair or right. You can say to someone: 'You've done something wrong, we're not going to tell you what it is, and we're just going to put you through hell.'"John Ghazvinian, Historian whose parents lost access to their Citibank account
The White House has led a backlash to so-called debanking, in which people including the president have complained they were given no explanation and short notice to clear out their accounts. Trump's regulators are potentially making it harder for banks to eject clients over suspicious behavior.