Kaushik
Seems likely $AMZN
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Seems likely $AMZN
$AMZN will they bring it down to $159s gapfill area tomorrow? tweet
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Brandon Beylo
RT @marketplunger1: “Maybe I should check my portfolio to see how my stocks are doing.”
*Opens Schwab* https://t.co/kpxYxk1NsG
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RT @marketplunger1: “Maybe I should check my portfolio to see how my stocks are doing.”
*Opens Schwab* https://t.co/kpxYxk1NsG
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Kaushik
BofA Sees 25bps Cut to FFR in September
A start in September appears locked in now. We think a softer-than-expected July employment report on the heels of other soft data like the ISM manufacturing report helps to lock-in a rate cut in September. Hence, we adjust our outlook for monetary policy in favor of more cuts. We now look for the Fed to cut its policy rate by 25bp at the September meeting. We still expect gradual cuts over front-loaded cuts. That said, we continue to project a gradual pace of easing. Inflation continues to run above the Fed's 2% target and the Fed has to balance both sides of its dual mandate. We think the employment report showed clear signs of Hurricane Beryl's landfall in Texas since 436,000 nonagricultural workers said they were employed but unable to work because of bad weather. This is up from 59k in June. In addition, aggregate hours for production and nonsupervisory workers fell 0.2% on the month. While we understand markets will lean in the direction of pricing in more cuts and debate a larger up-front cut, we do not believe 114k is the new trend pace of employment growth. The three-month average at around 175k is closer to where trend hiring. Hence, the Fed will need to balance a cooling labor market with inflation that is decelerating, but still above target. We will continue to look for signs that hard landing risks are more elevated than we think. We reduce the terminal to 3.25-3.5%. In making this change we also reduce our outlook for the terminal rate in the upcoming normalization cycle. We reduce it by 25bp to 3.25-3.5%. If the economy is cooling faster than we or the Fed anticipated, then it would point to a lower need for a higher-for-longer policy stance.
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BofA Sees 25bps Cut to FFR in September
A start in September appears locked in now. We think a softer-than-expected July employment report on the heels of other soft data like the ISM manufacturing report helps to lock-in a rate cut in September. Hence, we adjust our outlook for monetary policy in favor of more cuts. We now look for the Fed to cut its policy rate by 25bp at the September meeting. We still expect gradual cuts over front-loaded cuts. That said, we continue to project a gradual pace of easing. Inflation continues to run above the Fed's 2% target and the Fed has to balance both sides of its dual mandate. We think the employment report showed clear signs of Hurricane Beryl's landfall in Texas since 436,000 nonagricultural workers said they were employed but unable to work because of bad weather. This is up from 59k in June. In addition, aggregate hours for production and nonsupervisory workers fell 0.2% on the month. While we understand markets will lean in the direction of pricing in more cuts and debate a larger up-front cut, we do not believe 114k is the new trend pace of employment growth. The three-month average at around 175k is closer to where trend hiring. Hence, the Fed will need to balance a cooling labor market with inflation that is decelerating, but still above target. We will continue to look for signs that hard landing risks are more elevated than we think. We reduce the terminal to 3.25-3.5%. In making this change we also reduce our outlook for the terminal rate in the upcoming normalization cycle. We reduce it by 25bp to 3.25-3.5%. If the economy is cooling faster than we or the Fed anticipated, then it would point to a lower need for a higher-for-longer policy stance.
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AkhenOsiris
$DDOG Upgraded to Buy at BTIG
BTIG upgraded Datadog to Buy from Neutral, introducing a price target of $143 per share in a note Thursday, citing strong checks and an "underappreciated Splunk displacement opportunity."
Analysts at BTIG see DDOG as a top player in the observability market, poised for substantial growth with new products and features such as Flex Logs, LLM Monitoring, and Bits AI, offering growth potential.
" In short, we see DDOG as the best play in the observability market with a large opportunity to gain share," they declare. "We also think new products and features (such as Flex Logs, LLM Monitoring, Bits AI, etc) create a compelling long-term growth opportunity."
The firm explained that recent fieldwork involving discussions with ten partners, five of which skewed towards large enterprises, led BTIG to a few key conclusions.
Firstly, cloud cost optimization initiatives related to the broader macroeconomic environment appear mostly complete, which is positive for observability spending.
BTIG noted that, despite Microsoft's mild cloud growth disappointment, the overall trend indicates improving growth at the top three hyperscale cloud IaaS providers, suggesting a favorable outlook for observability spending.
BTIG believes that DDOG is well-positioned to gain incremental market share from Splunk following its acquisition by Cisco. Although this displacement is not expected to significantly impact 2024, it is said to represents a substantial opportunity over the next three to four years.
BTIG estimates that DDOG could capture approximately $270 million in incremental annual revenue from Splunk, adding around 300 basis points per year to DDOG's growth rate through 2027.
Positive Q2 2024 field checks support BTIG's confidence in DDOG's forecasts.
Analysts expect DDOG to post strong Q2 revenue, potentially reaching $644 million, a 26.4% year-over-year increase in an upside scenario compared to the street estimate of $625 million. For the full year, BTIG projects a 25% year-over-year revenue growth for DDOG, surpassing the street's 23% estimate.
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$DDOG Upgraded to Buy at BTIG
BTIG upgraded Datadog to Buy from Neutral, introducing a price target of $143 per share in a note Thursday, citing strong checks and an "underappreciated Splunk displacement opportunity."
Analysts at BTIG see DDOG as a top player in the observability market, poised for substantial growth with new products and features such as Flex Logs, LLM Monitoring, and Bits AI, offering growth potential.
" In short, we see DDOG as the best play in the observability market with a large opportunity to gain share," they declare. "We also think new products and features (such as Flex Logs, LLM Monitoring, Bits AI, etc) create a compelling long-term growth opportunity."
The firm explained that recent fieldwork involving discussions with ten partners, five of which skewed towards large enterprises, led BTIG to a few key conclusions.
Firstly, cloud cost optimization initiatives related to the broader macroeconomic environment appear mostly complete, which is positive for observability spending.
BTIG noted that, despite Microsoft's mild cloud growth disappointment, the overall trend indicates improving growth at the top three hyperscale cloud IaaS providers, suggesting a favorable outlook for observability spending.
BTIG believes that DDOG is well-positioned to gain incremental market share from Splunk following its acquisition by Cisco. Although this displacement is not expected to significantly impact 2024, it is said to represents a substantial opportunity over the next three to four years.
BTIG estimates that DDOG could capture approximately $270 million in incremental annual revenue from Splunk, adding around 300 basis points per year to DDOG's growth rate through 2027.
Positive Q2 2024 field checks support BTIG's confidence in DDOG's forecasts.
Analysts expect DDOG to post strong Q2 revenue, potentially reaching $644 million, a 26.4% year-over-year increase in an upside scenario compared to the street estimate of $625 million. For the full year, BTIG projects a 25% year-over-year revenue growth for DDOG, surpassing the street's 23% estimate.
Anecdotally hearing observability seeing some benefit out there, especially post CRWD outage, but also due to AI workloads...any meat on this bone @mdsmaldon @SaaSletter ? - AkhenOsiristweet