The stock market atmosphere is abuzz as Wall Street gears up for the commencement of the third-quarter earnings season.
In the realm of tech, two major players, Taiwan Semiconductor (TSM) and Netflix (NFLX), are primed to unveil their financial performances in October, enticing investors to consider seizing the moment and holding steady amidst the fluctuations.
Looking ahead in anticipation of market-moving news? Make sure to check out the Zacks Earnings Calendar for valuable insights.
As Wall Street navigates geopolitical tensions and market uncertainties, the looming shadow of the election casts a historical pall over October, known to be a tumultuous month in election years, potentially ushering in heightened volatility.
Regardless of the political backdrop, the pursuit of profits remains Wall Street’s enduring quest. The previous administrations, under Trump and Obama, each boasted comparable annual stock market returns, showcasing the market’s resilience to political oscillations.
Taiwan Semiconductor Stock: An Anchor in the Tech and AI Seas
Taiwan Semiconductor Manufacturing Co. TSM is slated to unveil its Q3 2024 earnings results on Thursday, October 17.
Taiwan Semi, a stalwart in technology investment, spans various tech domains, from data centers to artificial intelligence, cultivating a robust foundation for future innovations.
Operating at the vanguard of chip technology, Taiwan Semiconductor fabricates cutting-edge chips, servicing top-tier clients like Nvidia NVDA and Apple. Securing 61% of the semiconductor foundry market in Q4 of 2023, Taiwan Semi’s dominance stands unparalleled.
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Distinguished by its exclusive focus on semiconductor foundry operations, Taiwan Semi has ascended to a preeminent position, bolstered by an expanding global footprint, assuaging geopolitical concerns.
With a strong performance in the last quarter and a promising outlook, TSMC eyes a substantial 24% growth in sales for FY24 and FY25, propelling its revenue from $69 billion in 2023 to an anticipated $106 billion next year. Backed by a Zacks Rank #2 (Buy), Taiwan Semi is geared for success.
Thriving over the past decade, Taiwan Semiconductor has outpaced the Tech sector by more than double, recording a remarkable 73% year-to-date surge compared to Tech’s 23%.
Trading at a discount to its 10-year peak, TSM stock shows resilience, holding at 16% below its average Zacks price target. Despite nearing all-time highs, Taiwan Semi stock maintains neutral RSI levels, signifying potential for further growth.
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Offering a discount to its historical highs on a forward 12-month earnings basis, Taiwan Semi trades at a compelling valuation, 34% below its peak at 22.4X. With a dividend in its arsenal and a robust balance sheet, TSMC remains an attractive investment prospect
Embrace Netflix Stock for Evergreen Growth in the Streaming Universe
Netflix NFLX is gearing up to disclose its Q3 results on Thursday, October 17.
Revolutionizing the entertainment landscape, Netflix, with its early mover advantage and expansive content catalog, maintains a competitive edge over industry rivals like Disney and Apple. AAPL
Audacious Ascent: Netflix Navigates the Streaming Universe with Supersonic Subscriber Growth
The Streaming Expedition
Netflix, the trailblazer in the streaming world, has been defying conventional limits. The company’s voyage into live sports, reality TV, and blockbuster movies has fortified its turf and lured more subscribers into its magnetic orbit. The introduction of a budget-friendly ad-based tier has also significantly contributed to its expanding constellation of followers.
Netflix’s star shines more brightly than ever, with a staggering 13.1 million new paid subscribers in the fourth quarter of 2023. This remarkable milestone echoes the surge Netflix experienced in the early throes of the pandemic, cementing its resilience and adaptability in a shifting entertainment landscape. Moreover, the company’s upward trajectory continues with an additional 8.1 million subscribers in the second quarter of the fiscal year 2024, propelling its total subscribers to an astronomical 277.7 million.
The Sublime Projection
The future seems luminous for Netflix, with an anticipated 14% growth in its subscriber base in the third quarter. The streaming powerhouse isn’t stopping there, as forecasts predict a boom in revenue by 15% in 2024 and a further 12% uptick in 2025. These figures translate to a jaw-dropping addition of about $10 billion to the revenue stream compared to 2023. Netflix is gearing up for a growth spurt that is set to eclipse even its remarkable strides in 2023 and 2022.
The Financial Constellation
Financially, Netflix is charting a course that promises substantial returns, with adjusted earnings estimated to surge by 59% in 2024 and an additional 19% growth expected in the following year. Despite a temporary stagnation in its EPS revisions landing it a Zacks Rank #3 (Hold), Netflix’s long-term outlook for fiscal years 2024, 2025, and 2026 has witnessed a significant upswing over the past year.
The Meteoric Rise
In a galaxy of its own, Netflix’s stock has witnessed an astronomic 1,000% surge in the past decade, tripling the Tech sector’s growth. The past two years alone saw a 200% ascension, with the stock breaching its 2021 zenith in recent months. The potential for Netflix’s stock to soar even higher looms large, especially if it dazzles Wall Street with robust guidance in the forthcoming quarters.
The Valuation Odyssey
Astronomically speaking, Netflix’s current valuation hovers at over a 90% discount from its all-time highs, remaining approximately 50% below its 10-year median at 32.6X forward earnings. This enticing valuation may attract investors seeking a celestial bargain in the galaxy of streaming giants.
The Future Frontier Awaits
As Netflix continues its interstellar journey through the universe of streaming entertainment, observers eagerly await its next move. With a history of defying gravity and pushing boundaries, Netflix’s orbit appears destined for further expansions into uncharted territories, captivating audiences and investors alike.
