💰 Positive signals are emerging as substantial progress has been made regarding Sino-American tariffs
💹 $ServiceNow(NOW)$/$Snowflake(SNOW)$/$Cloudflare, Inc.(NET)$: SaaS companies present a must-not-miss opportunity within the bullish trend.
📣 Stay tuned, supercharge purchasing power through CashBoost!
Last Friday, AI chip stocks made significant moves, with MCHP up by 12.6% and SLAB up by 5.4%.
| BREAKING
Tariff news boosts global markets. Today, the U.S. and China reached an agreement to substantially reduce tariffs on each other's goods within 90 days.
The joint statement reveals that starting from May 14, the U.S. will temporarily lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. imports from 125% to 10%.
Following last week’s agreement with the UK and this week’s alignment with China, the U.S. continues to send positive signals to the market, with noticeable reactions in related assets.
| Market recap
Last week, the three major U.S. stock indices saw slight declines, with $S&P 500(.SPX)$ down 0.5% and $NASDAQ(.IXIC)$ down 0.3%. On Friday, the market opened high, reflecting strong enthusiasm, but shifted downward during the session. By the end, buying spurred a near-flat close.
On Friday, $NASDAQ Golden Dragon China Index(HXC)$ fell by 5%, despite some stocks experiencing robust gains, such as $Canadian Solar(CSIQ)$ up by 6.3% and $MINISO Group Holding Limited(MNSO)$ up by 6.2%.
Megacaps - standing strong
$Tesla Motors(TSLA)$ up by 4.7%, with Tesla reaching a high of $307.04 during the trading day, approaching the psychologically significant $300 mark.
Driven by multiple positive factors, Tesla’s stock rose sharply on Friday. Although its sales figures were underwhelming, the market appears to focus more on its future developments in autonomous driving, robotics, and other emerging fields. Additionally, the easing of international trade relations and Elon Musk’s new political role have bolstered investor confidence.
Tesla opened high and quickly surged, with gains reaching 7.80%, pushing its stock price above the $300 threshold.
Although gains receded in the afternoon, the stock maintained a strong position, closing with an increase of nearly 4.7%.
$Apple(AAPL)$ up by 0.5%, with numerous credible leaks circulating.
On May 12, Mark Gurman reported that AAPL is planning a significant lineup for 2027, including foldable all-screen iPhones, AR smart glasses, AI-powered wearables, and even a tabletop home robot.
Mark Gurman is a prominent Apple journalist at Bloomberg, known for his high output and authority on the subject. He began writing about Apple as a prolific online contributor while still in high school in Los Angeles back in 2010.
Top movers - crypto, passenger services
On Friday, AI chip stocks were in the spotlight, with $Microchip Technology(MCHP)$ up by 12.6% and $Silicon Laboratories(SLAB)$ up by 5.4%.
New Alpha has covered them last Friday: 💰 New Alpha | All rise on trade optimism: STX/MCHP/SLAB
Crypto assets showcased impressive performances, with $Next Technology(NXTT)$ up by 661%, $MARA Holdings(MARA)$ up by 10%, and $CleanSpark, Inc.(CLSK)$ up by 6%.
The fair value of digital assets held by $Next Technology(NXTT)$ , including Bitcoin, has surged to $482 million, over five times the $78.32 million projected by the end of 2024. This significant appreciation has driven the company's total assets from $92.91 million to $484 million.
The passenger services market experienced volatility, with $Lyft, Inc.(LYFT)$ up by 28%, $Hertz Global Holdings, Inc.(HTZ)$ up by 7.7%, and $Avis Budget(CAR)$ up by 3%.
Ride-hailing giant Lyft's stock soared following a better-than-expected Q1 performance, with substantial increases in free cash flow, ongoing operational improvements, and an increase in their stock buyback program to $750 million.
Media stocks are riding a wave, with $Trade Desk Inc.(TTD)$ up by 19% and $Pinterest, Inc.(PINS)$ up by 5%.
The Trade Desk's Q1 results far exceeded market expectations, highlighting its strong competitive position in the digital advertising space.
Pinterest's Q1 revenue grew by 16%, surpassing its early February forecasts, and it issued an optimistic outlook, with its new "visual discovery platform" achieving record-high active users.
| Market darlings: Grab the bull by the horns
In a bullish market, AI software companies have ample growth potential.
NOW
$ServiceNow(NOW)$ is a leading cloud computing services provider focused on delivering digital workflow solutions. It holds a significant position in the IT services industry, possessing strong market influence.
Recent market dynamics indicate that ServiceNow's channel partners anticipate robust demand through 2025, with transaction activity exceeding expectations.
Earlier this year, the company announced a new share repurchase program, with a cap of $160 million, demonstrating its confidence in future growth prospects.
SNOW
$Snowflake(SNOW)$ is a software company specializing in data warehousing and analytics. Snowflake aims to be the infrastructure for enterprise data and AI, assisting companies in better leveraging data to create value.
The company is continually enhancing its product portfolio by launching new AI products and services, increasing its market competitiveness. Collaborations with companies such as Intent IQ and Strata Decision Technology have strengthened its capabilities in marketing and healthcare data services.
New CEO Sridhar Ramaswamy emphasizes product acceleration, effective marketing strategies, and operational efficiency improvement, bringing fresh leadership to the company. Ramaswamy aims for Snowflake to achieve a 30% growth rate over the next decade, positioning it as a leader in enterprise data and AI, akin to Google's role in search.
NET
$Cloudflare, Inc.(NET)$ is a leading internet infrastructure company focused on providing cybersecurity, content delivery network (CDN), and domain name system (DNS) services.
NET is experiencing rapid revenue growth through investments in cybersecurity and AI inference, showcasing strong momentum and market potential.
Recently, the company’s stock has performed well, with a nearly 20-day increase exceeding 28%.
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