The Morning Market Feed, June 11th
We saw the announcement for new inclusions into the S&P500, with the reshuffle, 3 companies were added to the index, and 3 removed. AMD is having a rough day, whilst Celsius Holding is trying to one-up it. Now let’s dive straight into what happened yesterday!
S&P500 inclusion
It may be a bit of a tough one for Palantir shareholders as I saw them once again rally the idea of inclusion in the S%P500, but just like the two quarters prior, it wasn’t included. Three other companies were, however, and those stocks made big jumps. These companies were Crowdstrike (+7.3%), KKR (+11.2%), and Go Daddy (+1.9%). The difference may come from the amount of buying that would need to be done into the companies, as Crowdstrike and KKR will get significantly higher weights within the index.
The companies that will be dropped from the index are Illumina, Comerica, and Robert Half.
AMD Downgraded
Morgan Stanley downgraded AMD from “Overweight” to “Equalweight” while it maintained the $176 price target. The downgrade comes as Morgan Stanley says it likes the AMD story, but investor expectations for AI seem to be too high. The stock was down 4.5% on the news.
This is quite the discovery from Morgan Stanley. Because if we look at the latest earnings report, the Data Centre segment may be up 80% YoY, but overall revenue is up a whopping 2%. Margins, which are what makes the Nvidia story so incredible, are up 3bps YoY for AMD’s gross margin, now at 47% on a GAAP basis. Operating margin was an amazing 1%, or 21% on a non-GAAP basis. The difference here is SBC and a large amortization cost.
After that latest earnings, I was quite vocal about not liking what I was seeing at all because it made no sense, those earnings were simply terrible. AMD trades on hopes of getting business from Nvidia clients who don’t want the far superior product. But it’s good to see that it only took 1.5 months for Morgan Stanley to pick up on it after some other bad AI earnings reports.
Celsius is the actual liquid death apparently
Now this came from a short seller report as it appears from the good old Twitter, or X I should say. I understand the reliability of this source, but it was the only thing I could find. Normally I get my news through Tradingview, and Yahoo Finance, while sometimes looking for explanations on Seeking Alpha. None of them had anything to share on the name so down the well I had to go. Apparently, Cyonide would be a form of vitamin B12, and you’d never be able to get enough of the drink in your system for it to pose a threat. I have added the screenshots at the bottom about the possible reasons for the downward move and included my quick Google search of the B12 theory.
AI now stands for Apple Intelligence
If you own an iPhone 15 (or newer when IOS 18 will be released) you will be able to integrate ChatGPT with Siri. The upgrade to IOS 18 will probably come with the new iPhone 16 which can be expected later this year, just like every year around September. The ChatGPT integration wasn’t the only innovation presented at the developer conference, but the others were mostly small integrations which are small improvements.
You can find all the innovations here
That was it for today, I hope you will have a good day, and that markets will turn around again just like they did yesterday, as futures are pointing downwards slightly as of writing this
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The news regarding Celsius Holdings
