Articles for author: Ron Finklestien

January 17, 2024

Ron Finklestien

The SPY Dilemma: Should Investors Worry Or Rejoice?

Investors who heeded my “hold” rating on the SPDR S&P 500 Trust ETF (NYSEARCA:SPY) in my previous piece, “SPY: An Early Contrarian Opportunity,” published on October 10, 2023, have seen substantial positive momentum, showcased by a robust trailing support and relative strength. Capitalizing on SPY’s brief dip below the trendline, investors anticipated a 10% return with low risk. However, the current situation is more nuanced, with SPY now encountering formidable resistance that could trigger either substantial upside potential or a significant downturn. In this piece, I will evaluate the present state of critical market indicators related to SPY, emphasizing a

January 17, 2024

Ron Finklestien

Google Implements Major Layoffs in Advertising Sales Division More layoffs at Google as hundreds of ad sales jobs are cut in operating model rejig

JHVEPhoto/iStock Editorial via Getty Images Google, the search giant (NASDAQ:GOOG) (NASDAQ:GOOGL), is set to lay off several hundred workers from its advertising sales division. This move was revealed in a memo sent by chief business officer Philipp Schindler to the staff on Tuesday, as reported by Business Insider. This decision is part of the company’s effort to restructure its sales operations. Google is reallocating its workforce, shifting more employees to its customer solutions team, which caters to medium-level clients. This shift is happening at the expense of the team handling larger clients, who do not require as much support from

January 17, 2024

Ron Finklestien

CrowdStrike Valuation: Investor Caution Advised CrowdStrike Valuation: Investor Caution Advised

CrowdStrike (NASDAQ:CRWD) is poised for accelerated commercial growth in 2024 following an impressive performance in 2023. Various CIO surveys indicate an anticipated expansion in IT budgets for 2024, with cybersecurity demand expected to surpass overall software spending. Analysts project a 25% year-over-year increase in CrowdStrike’s topline over the next four quarters, reflecting the company’s ability to generate approximately 36 cents in free cash flow for every incremental sales dollar. However, despite these positive fundamentals, the stock appears overpriced, trading at 22x EV/Sales and 103x EV/EBIT (projected 2024 Sales and EBIT). Concerns over aggressive valuation multiples cast doubt on the likelihood

January 17, 2024

Ron Finklestien

European Markets React to Inflation and Davos Meeting European markets react to inflation and Davos meeting

da-kuk/E+ via Getty Images London (UKX) -1.22% UK’s inflation rate rises to 4% in December Germany (DAX:IND) -0.88% France (CAC:IND) -1.06% The annual inflation rate in Austria rose to 5.6% in December 2023. The annual producer inflation in the Czech Republic accelerated to 1.4% in December 2023. The pan-European Stoxx 600 (STOXX) moved 1.18% lower, as investors remain focused on the World Economic Forum taking place this week in Davos, Switzerland. Coming up in the session: Euro Area inflation rate expected shortly. In the bond market, the U.S. 10-year Treasury yield (US10Y) was up less than 1 basis point to

January 17, 2024

Ron Finklestien

The Sizzling Success of Celsius Holdings: An Investment Worth Pondering

Celsius Holdings, Inc. (NASDAQ:CELH) has been riding a high wave for several years, driven by the soaring popularity of its flagship energy drink, CELSIUS. The company has tapped into the consumer demand for functional, healthier energy drinks, flaunting claims that each serving can burn 100-140 calories, boost metabolic rates by 12%, and elevate energy levels for three hours. These assertions, grounded in science, were supported by self-funded studies, illustrating the company’s commitment to product efficacy. Although one might raise an eyebrow at the self-funded nature of these studies, the results speak volumes about the brand’s potential. A Prime Growth Narrative

January 17, 2024

Ron Finklestien

Financial Outlook: Asia-Pacific Stocks React to China Data and Rising US Treasury Yields Asia-Pacific Stocks React to China Data and Rising US Treasury Yields

KanawatTH Japan (NKY:IND) -0.40%. The markets now look ahead to domestic inflation data later this week for clues on the path for Bank of Japan monetary policy. China (SHCOMP) -1.98%. China Q4 GDP grows less than expected at 5.2% amid weak spending, property market decline. China’s December industrial output up 6.8% y/y, retail sales growth below forecast. China’s surveyed urban unemployment rate inched up to 5.1% in December 2023 from 5.0% in the previous three months, which was the lowest jobless rate since November 2021. Markets are less certain on whether the PBOC will ease policy further soon due to

January 17, 2024

Ron Finklestien

China’s Economic Indicators China’s Economic Landscape: Industrial Output Rises While Retail Sales Fall Short

China, the powerhouse of industrial production, witnessed a noteworthy surge with industrial output scaling up by 6.8% year-on-year in December 2023, marking an acceleration from the 6.6% gain in the previous month and surpassing the market’s prognostication of 6.6%. Hi5s all around! This vigorous uptick in industrial production, however, failed to be echoed by retail sales growth, which clocked in at 7.4% year-on-year in December 2023, slightly missing the market consensus of 8.0% and decelerating from a robust 10.1% upswing in November. The phenomenon mirrors a 12th consecutive month of ascension in retail trade, albeit at a slackened pace. The

January 17, 2024

Ron Finklestien

Analysis of Tesla’s Q4 Performance And Ongoing Challenges

Reevaluating Previous Performance And Mistakes Made Starting with a review of my previous assessment, my stance on Tesla (NASDAQ:TSLA) was overly optimistic, a ‘Buy’ recommendation. Regrettably, my forecast missed the mark, as the stock has delivered a concerning -18.42% return since my last article, notably underperforming the S&P 500’s +4.04% and yielding a negative alpha of 14.38%. In retrospect, I recognize two significant errors and a misjudgment. Firstly, I allowed myself to be carried away by Tesla’s futuristic promises, overemphasizing the potential of the industrial robots business and full self-driving technology (FSD). However, I failed to remain grounded as a

January 16, 2024

Ron Finklestien

Investor Worries Overshadow Middle East Tensions U.S. crude oil underwhelms as pessimism overshadows Middle East tensions

SlavkoSereda/iStock via Getty Images Curse the fickle nature of the market! On Tuesday, U.S. crude oil futures whimpered to a close, as investors, blinded by foreboding shadow, fretted over demand deficiencies rather than the burgeoning threat of supply disruptions from escalating tensions in the Middle East. The Dollar Gains and Sentiments Sour The jaunty jump of the U.S. dollar to a one-month high heaped yet more pressure on oil prices, as investors curbed their enthusiasm for an interest rate cut by the Federal Reserve in March. If that wasn’t enough, the New York Federal Reserve darkened moods further by reporting

January 16, 2024

Ron Finklestien

Promising Stocks Surging After Earnings Triumphs

As we proceed through the earnings season, some companies are truly commanding the spotlight after delivering impressive earnings that far exceeded expectations. Representing various sectors, here are three companies that investors should consider purchasing stocks in, following their outstanding quarterly performances last week. AZZ Inc. (AZZ) Notably, the Zacks Manufacturing-Electronics Industry is currently in the top 6% of over 250 Zacks industries, and AZZ Inc. is thriving as a provider of metal coating services and welding solutions. AZZ reported its fiscal third-quarter results last Tuesday, boasting Q3 EPS of $1.19, which exceeded expectations of $0.99 per share by 20%. Third-quarter