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Netflix (NFLX) shares currently trade at a 2-year low after revenue missed expectations in earnings. Alicia Reese talks about the metrics she sees weighing down the stock and how the streaming company has potential to stage a rebound. Her two biggest points backing the bullish thesis: advertising and M&A activity. Tom White offers a bullish example options trade for Netflix.
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On the macro front, investors got a "sigh of relief" as inflation pressures appeared to ease with this week's economic data, says Charles Schwab's Collin Martin. However, he notes that one data point doesn't signify a trend. Collin outlines fiscal concerns he sees as prevalent for the months ahead. Michael Townsend walks investors through Fed Chair Kevin Warsh's commentary on inflation and AI's role in the macro picture. He sees the independent task forces as notable for the FOMC, making the case the forces "give him a buffer" on adjusting interest rates.
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Apple (AAPL) briefly surpassed Nvidia (NVDA) in market cap as the biggest company on Wall Street after HSBC upgraded the stock to buy from hold. Jenny Horne talks about the “operational turning point” the firm sees in the company, offering insight into the upgrade and price target hike. Dan Deming walks us through an example options trade for Apple.
======== Schwab Network ========
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Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D
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David Bailin argues that investors are overestimating earnings expectations and underestimating the long-term impact of AI. He explains why hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) remain attractively valued and why the AI buildout and adoption cycle still has plenty of room to run.
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Anthony Georgiades talks about the spike in venture capital funding, and how it is flowing into more select deals. He says much VC capital is focused on frontier AI names, but he talks about a refocus across sectors, by VC investors, on core distribution, unit economics, and revenue, when deploying capital.
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Mario Lagana offers his insights into the violent sell-off see across Wall Street throughout July, pointing to high-volume selling days as a clear warning sign bearish action can continue. He tells investors to expect 30% to 40% corrections in key tech leaders, as companies like Micron (MU) have already experienced those steep downside trends. However, Mario calls AMD Inc. (AMD) a leader that has maintained its technical trends.
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Rebecca Walser talks about why she believes markets are selling off tech as Friday's trading session continues that weakness in the sector. She discusses CapEx concerns surrounding hyperscalers like Alphabet (GOOGL) and Microsoft (MSFT), while highlighting sectors she sees having strong AI momentum. Rebecca also talks more about her expectations for the earnings season ahead.
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Headwind after headwind have hit markets throughout the week due to the AI sell-off and heightening tensions between Iran and the U.S. Kevin Hincks considers Friday's trading session "critical," urging investors to keep an eye on the S&P 500 (SPX) and Nasdaq-100 (NDX) throughout the day. It comes as the U.S. strikes Iran for a sixth straight day, piling uncertainty into the energy trade and the future of the Strait of Hormuz. Kevin also discusses Netflix's (NFLX) earnings the sell-off that report ignited.
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Diane King Hall discusses Intuitive Surgical (ISRG) earnings, explaining how GLP-1 trends have hit the company. She also talks about SpaceX (SPCX) shares coming back to Earth after scrubbing Starship’s test flight, and HSBC's upgrade on Apple (AAPL) to buy from hold.
======== Schwab Network ========
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Domino's Pizza (DPZ) is experiencing a bit of a bullish rebound heading into Monday's earnings report. Rick Ducat highlights why the trend higher is substantial and highlights levels to watch heading into the report. He then offers an example options trade for Domino's.
======== Schwab Network ========
Empowering every investor and trader, every market day.
Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D
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