Shares of C3.ai soared more than 20% on Tuesday, marking the stock’s highest close since March.
The rally was driven by the company announcement of a strategic alliance with Microsoft Corp. to enhance the adoption of Enterprise AI on Microsoft Azure.
The partnership underscores C3.ai's deepening involvement with major tech players, adding to its existing relationships with Google, Raytheon, Bank of America, and Baker Hughes.
The announcement has spurred a flurry of activity in the options market, particularly for AI $30 calls. The activity indicates that speculators are positioning themselves bullishly ahead of C3.ai’s upcoming earnings release on December 9.
Last quarter, the company not only beat Wall Street's earnings and revenue estimates but also reported a year-over-year sales growth of over 20%—its strongest in more than two years.
From a technical perspective, C3.ai’s stock has recently surpassed both its 50-day and 200-day moving averages, signaling strengthening momentum.
Additionally, the stock has now moved above its 20-month moving average, firmly establishing it within a long-term bull market trend.
C3.ai’s shares are now eyeing a short-term price target of $42 and a long-term target of $50.
Lowe's shares are trading 4% lower after the company released its quarterly earnings results on Tuesday morning.
Although the earnings per share exceeded expectations, the results were tempered by relatively modest revenue growth.
Over the year, Lowe's experienced a 1.5% decline in top-line revenue. This marks seven consecutive quarters of negative revenue growth for the big box hardware retailer.
The ongoing revenue challenges at Lowe's are largely attributed to its significant focus on the do-it-yourself (DIY) market.
Approximately 70% of Lowe's business comes from DIY consumers, with only 30% deriving from professional contractors. This contrasts with Home Depot, where revenue is evenly split between DIY and contractor business at 50% each.
In terms of forward-looking guidance, Lowe's management provided projections that were in line with expectations. That guidance did little to excite investors.
Despite the trend of shrinking revenue, Lowe’s stock is coming off recent all-time highs. The stock benefited from an uptick in consumer activity as interest rates began to decline.
Investors should keep an eye on the $250 level for technical support and anticipate a continuation of the stock's long-term bullish trend despite the recent pullback.
This level could represent a strategic entry point for those looking to capitalize on Lowe's underlying strengths and market positioning.
Netflix shares are surging in a parabolic rally following last weekend's major boxing event.
The streaming giant's stock rose an additional 3% on heavy trading volumes as investors responded positively to the broadcast of the fight between Mike Tyson and Jake Paul. The event attracted a record-breaking viewership of 60 million households, setting a new high for streaming events.
Investors seem largely unconcerned about some slight technical issues during the broadcast.
Netflix has yet to release detailed data on how the event influenced new subscription sign-ups. There is an expectation that subscriptions for its standard advertising-supported plan have seen an increase.
This follows the company's strategic move nearly two years ago to introduce ad-supported subscriptions, which has since led to an 115% increase in Netflix's stock value.
Currently, Netflix shares are enjoying a robust long-term bull market. Shares of Netflix are advancing towards a target price of $1,000.
The recent strength in Netflix shares has resulted in a short-term oversold condition as indicated by its Relative Strength Index (RSI). This suggests a potential upcoming consolidation or correction.
This scenario will likely create a buying opportunity for investors, allowing them to position to capitalize on the next anticipated rally in Netflix’s shares.
