Strait of Hormuz Oil and Gas Traffic Rebounds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: CNBC
- Oil Traffic Rebound: The U.S. Central Command reports that 55 merchant ships have recently transited the Strait of Hormuz, transporting over 17 million barrels of oil, indicating an improvement in traffic flow, which may help stabilize global supply despite remaining below pre-war levels.
- Positive Market Reaction: With oil prices dropping below $75, gasoline prices are expected to gradually decrease; while concerns about the Middle East persist, the recent shipping data has provided some investor confidence, potentially leading to a rebound in energy stocks.
- Chevron-Microsoft Partnership: Chevron has announced a 20-year natural gas supply agreement with Microsoft to power a new data center in Texas, which is expected to significantly benefit the local economy by boosting jobs and corporate earnings.
- Interest Rate Risk Watch: The 10-year Treasury yield remains around 4.5%, and with the Fed adopting a more hawkish stance, rising borrowing costs may pose risks to some marginal projects, prompting investors to closely monitor interest rate changes' impact on the energy market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MSFT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 373.940
Low
500.00
Averages
631.36
High
678.00
Current: 373.940
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SpaceX Stock Declines After IPO Amid Valuation Concerns
- SpaceX IPO Performance: SpaceX went public on June 12, reaching a peak of $218 per share shortly after, but with a market cap of $2.8 trillion and only $19.3 billion in revenue, its price-to-sales ratio soared to 145, indicating unsustainable valuation.
- Stock Price Decline: By June 18, SpaceX's stock had fallen to $185, reflecting market concerns over its high valuation, prompting investors to consider more value-oriented opportunities elsewhere.
- Microsoft AI Business Growth: Microsoft is experiencing rapid growth in its AI sector, particularly with its Copilot assistant, which has been added to 20 million 365 licenses by enterprises, marking a remarkable 250% year-over-year increase, indicating strong market demand.
- Surge in Cloud Computing Demand: Microsoft Azure's total revenue grew by 40% in the third quarter, with a staggering $627 billion order backlog, and plans to double its data center footprint over the next two years to meet the soaring demand, further driving revenue growth.
See More
Broadcom and OpenAI Launch New Chip Jalapeno to Boost AI Performance
- Chip Launch: Broadcom and OpenAI have unveiled the Jalapeno chip, designed to lower AI computation token costs by enhancing performance per watt, thereby strengthening the company's competitive position in the AI accelerator market.
- Market Reaction: Broadcom shares have dropped nearly 20% since early June, and the launch of Jalapeno may provide a floor for the stock, although the market remains cautious about the company's future earnings potential.
- Custom Chip Strategy: CEO Hock Tan stated that developing custom silicon will help developers reduce costs and improve efficiency, although custom chips lack the flexibility of Nvidia's GPU solutions.
- Future Outlook: Jalapeno is expected to see initial deployment later in 2023, with plans for scaling up production by 2027, demonstrating Broadcom's strong confidence in future market demand.
See More
Alphabet Joins Dow Jones Industrial Average, Reflecting Tech Evolution
- Dow Inclusion: Alphabet will join the Dow Jones Industrial Average on Monday, replacing Verizon, symbolizing the index's evolution in response to new economic forces, although this inclusion does not directly drive stock purchases.
- Price Impact: With Alphabet trading at $350 compared to Verizon's $46, Alphabet's higher volatility will have a more significant impact on the Dow average, potentially influencing investor sentiment in the market.
- AI Strategic Edge: Google's leadership in AI is bolstered by its cloud computing services, the strong AI model Gemini, and custom AI chips, although recent concerns over executive departures and AI spending plans have led to a 6% drop in stock price.
- Technical Analysis Support: Technical analysis indicates that Alphabet's stock is finding support around $343, and while recent negative news may cap near-term upside, long-term investors might find current levels opportunistic for entry.
See More
Strait of Hormuz Oil and Gas Traffic Rebounds
- Oil Traffic Rebound: The U.S. Central Command reports that 55 merchant ships have recently transited the Strait of Hormuz, transporting over 17 million barrels of oil, indicating an improvement in traffic flow, which may help stabilize global supply despite remaining below pre-war levels.
- Positive Market Reaction: With oil prices dropping below $75, gasoline prices are expected to gradually decrease; while concerns about the Middle East persist, the recent shipping data has provided some investor confidence, potentially leading to a rebound in energy stocks.
- Chevron-Microsoft Partnership: Chevron has announced a 20-year natural gas supply agreement with Microsoft to power a new data center in Texas, which is expected to significantly benefit the local economy by boosting jobs and corporate earnings.
- Interest Rate Risk Watch: The 10-year Treasury yield remains around 4.5%, and with the Fed adopting a more hawkish stance, rising borrowing costs may pose risks to some marginal projects, prompting investors to closely monitor interest rate changes' impact on the energy market.
See More
Alphabet Joins Dow Industrials, Replacing Verizon
- Dow Component Change: Alphabet (GOOGL) replaces Verizon (VZ) in the Dow Industrials, marking a significant shift towards mega-cap tech within the 130-year-old index, which may alter investor perceptions of traditional sectors amidst a tech-dominated market.
- Performance Comparison: While the Dow still features strong traditional stocks like Caterpillar (CAT) and Cisco (CSCO), which are up nearly 75% and 60% respectively, Alphabet's inclusion could shift focus towards tech stocks, reflecting current market dynamics.
- Investor Sentiment Shift: Changes in Dow components often signal market trends, and Alphabet's addition may be interpreted as a sign that its market cap has become too significant to overlook, prompting investors to monitor its price action around previous breakout levels.
- Key Future Trajectory: Should Alphabet maintain its stock price above its old breakout zone, it could attract further buying support; conversely, a decline could render the Dow more aligned with Nasdaq characteristics, impacting overall market sentiment.
See More
Microsoft's Quantum Computing Breakthrough Faces Scrutiny
- Journal Critique: A critique in Nature by Henry Legg raises concerns about Microsoft's claimed quantum computing breakthrough, highlighting inconsistencies and misreported outcomes in a key paper, which could jeopardize Microsoft's future quantum initiatives.
- Quantum Computing Goals: Microsoft aims to achieve a working quantum system by 2029; however, Legg's criticisms may undermine investor confidence in its technological progress, especially when compared to rivals like IBM and Google.
- Unpublished Major Discovery: Microsoft claimed last year to have discovered the Majorana particle related to quantum computing, yet it has not published this finding in a peer-reviewed journal, potentially questioning the credibility of its research and affecting its leadership in the quantum computing space.
- Rival Advantages: Unlike Microsoft, competitors such as IBM and Quantinuum have developed quantum computing methods that are more widely supported and validated, posing greater challenges for Microsoft and potentially impacting its market share.
See More
SpaceX Stock Declines After IPO Amid Valuation Concerns
- SpaceX IPO Performance: SpaceX went public on June 12, reaching a peak of $218 per share shortly after, but with a market cap of $2.8 trillion and only $19.3 billion in revenue, its price-to-sales ratio soared to 145, indicating unsustainable valuation.
- Stock Price Decline: By June 18, SpaceX's stock had fallen to $185, reflecting market concerns over its high valuation, prompting investors to consider more value-oriented opportunities elsewhere.
- Microsoft AI Business Growth: Microsoft is experiencing rapid growth in its AI sector, particularly with its Copilot assistant, which has been added to 20 million 365 licenses by enterprises, marking a remarkable 250% year-over-year increase, indicating strong market demand.
- Surge in Cloud Computing Demand: Microsoft Azure's total revenue grew by 40% in the third quarter, with a staggering $627 billion order backlog, and plans to double its data center footprint over the next two years to meet the soaring demand, further driving revenue growth.
See More
Broadcom and OpenAI Launch New Chip Jalapeno to Boost AI Performance
- Chip Launch: Broadcom and OpenAI have unveiled the Jalapeno chip, designed to lower AI computation token costs by enhancing performance per watt, thereby strengthening the company's competitive position in the AI accelerator market.
- Market Reaction: Broadcom shares have dropped nearly 20% since early June, and the launch of Jalapeno may provide a floor for the stock, although the market remains cautious about the company's future earnings potential.
- Custom Chip Strategy: CEO Hock Tan stated that developing custom silicon will help developers reduce costs and improve efficiency, although custom chips lack the flexibility of Nvidia's GPU solutions.
- Future Outlook: Jalapeno is expected to see initial deployment later in 2023, with plans for scaling up production by 2027, demonstrating Broadcom's strong confidence in future market demand.
See More
Alphabet Joins Dow Jones Industrial Average, Reflecting Tech Evolution
- Dow Inclusion: Alphabet will join the Dow Jones Industrial Average on Monday, replacing Verizon, symbolizing the index's evolution in response to new economic forces, although this inclusion does not directly drive stock purchases.
- Price Impact: With Alphabet trading at $350 compared to Verizon's $46, Alphabet's higher volatility will have a more significant impact on the Dow average, potentially influencing investor sentiment in the market.
- AI Strategic Edge: Google's leadership in AI is bolstered by its cloud computing services, the strong AI model Gemini, and custom AI chips, although recent concerns over executive departures and AI spending plans have led to a 6% drop in stock price.
- Technical Analysis Support: Technical analysis indicates that Alphabet's stock is finding support around $343, and while recent negative news may cap near-term upside, long-term investors might find current levels opportunistic for entry.
See More
Strait of Hormuz Oil and Gas Traffic Rebounds
- Oil Traffic Rebound: The U.S. Central Command reports that 55 merchant ships have recently transited the Strait of Hormuz, transporting over 17 million barrels of oil, indicating an improvement in traffic flow, which may help stabilize global supply despite remaining below pre-war levels.
- Positive Market Reaction: With oil prices dropping below $75, gasoline prices are expected to gradually decrease; while concerns about the Middle East persist, the recent shipping data has provided some investor confidence, potentially leading to a rebound in energy stocks.
- Chevron-Microsoft Partnership: Chevron has announced a 20-year natural gas supply agreement with Microsoft to power a new data center in Texas, which is expected to significantly benefit the local economy by boosting jobs and corporate earnings.
- Interest Rate Risk Watch: The 10-year Treasury yield remains around 4.5%, and with the Fed adopting a more hawkish stance, rising borrowing costs may pose risks to some marginal projects, prompting investors to closely monitor interest rate changes' impact on the energy market.
See More
Alphabet Joins Dow Industrials, Replacing Verizon
- Dow Component Change: Alphabet (GOOGL) replaces Verizon (VZ) in the Dow Industrials, marking a significant shift towards mega-cap tech within the 130-year-old index, which may alter investor perceptions of traditional sectors amidst a tech-dominated market.
- Performance Comparison: While the Dow still features strong traditional stocks like Caterpillar (CAT) and Cisco (CSCO), which are up nearly 75% and 60% respectively, Alphabet's inclusion could shift focus towards tech stocks, reflecting current market dynamics.
- Investor Sentiment Shift: Changes in Dow components often signal market trends, and Alphabet's addition may be interpreted as a sign that its market cap has become too significant to overlook, prompting investors to monitor its price action around previous breakout levels.
- Key Future Trajectory: Should Alphabet maintain its stock price above its old breakout zone, it could attract further buying support; conversely, a decline could render the Dow more aligned with Nasdaq characteristics, impacting overall market sentiment.
See More
Microsoft's Quantum Computing Breakthrough Faces Scrutiny
- Journal Critique: A critique in Nature by Henry Legg raises concerns about Microsoft's claimed quantum computing breakthrough, highlighting inconsistencies and misreported outcomes in a key paper, which could jeopardize Microsoft's future quantum initiatives.
- Quantum Computing Goals: Microsoft aims to achieve a working quantum system by 2029; however, Legg's criticisms may undermine investor confidence in its technological progress, especially when compared to rivals like IBM and Google.
- Unpublished Major Discovery: Microsoft claimed last year to have discovered the Majorana particle related to quantum computing, yet it has not published this finding in a peer-reviewed journal, potentially questioning the credibility of its research and affecting its leadership in the quantum computing space.
- Rival Advantages: Unlike Microsoft, competitors such as IBM and Quantinuum have developed quantum computing methods that are more widely supported and validated, posing greater challenges for Microsoft and potentially impacting its market share.
See More
